Special Needs Trusts

Glossary

Beneficiary – The person who receives the “benefits” of a will, trust, life insurance policy, certain employee benefits, and the like.

Codicil – An amendment to a will, which changes a portion of the will. A codicil must be signed and witnessed according to the same rules as the will.

Guardian – A person appointed by the court to assist a person with a disability (or minor) with his/her finances and/or personal decisions. The guardian becomes the legal representative of the disabled person/minor.

Estate – All of a person’s assets minus all of one’s debts at the time of death.

Estate Tax – Under federal law, taxes are due on estates over $5 million dollars. 

Executor – The person who is responsible for carrying out the directions contained in a will. The executor usually works with an attorney to “probate” (see definition below) the estate with the court.

Heir – A person who inherits property upon the death of another.

Intervivos Trust – A “living trust” – one which exists during the lifetime of the grantor or settlor (i.e. the maker of the trust).

Intestacy Laws – Laws of a state that dictate how your estate will be distributed if you die without a will. In Massachusetts, if there are children, 50% will pass to your spouse and 50% will be divided among your living children. If you child is a minor or disabled, the court will monitor distribution of the minor or disabled heir’s portion of the estate.

Irrevocable Trust – A Trust that cannot be changed by the maker of the trust once it has been executed. This type of trust is often used to avoid estate taxes because funds placed in the trust are generally not included in the maker’s estate.

Probate – A legal court procedure in which the assets of a deceased person are passed to beneficiaries under the provisions of a will or, if there is no will, under the state laws of intestacy.

Remainderman – The person(s) who will receive the remainder of a trust after the current beneficiary has died.

Revocable Trust – A trust that can be revoked or amended during the life of the grantor according to the provisions included in the trust document. A revocable trust is included in the estate of the grantor at the time of his/her death for purposes of determining estate taxes due, if any.

Supplemental Needs Trust – A trust used to provide supplemental care; care that is over and above what the beneficiary is able to obtain through his/her own earnings and/or through government benefits. A properly worded Supplemental Needs Trust will not jeopardize government benefits, which may, in fact, be more valuable than an inheritance.

Successor Executor – The person who assumes the duties of executor if the named executor is unwilling or unable to perform his/her duties.

Successor Guardian – The person who assumes the duty to handle finances and/or make decisions for a minor or person with a disability if the present guardian dies or is unable or unwilling perform his/her duties.

Testamentary Trust – A trust that goes into effect only upon the death of the testator (the person making a will containing a trust). The trust will go into effect after the estate is probated, which on average takes between six months and two years.

CJP - Combined Jewish Philanthropies

DAC - Disabled Adult Child

DDS/DMH - Department of Developmental Services/Department of Mental Health

JF&CS - Jewish Family & Children’s Service

SGA - Substantial Gainful Activity

SSDI - Social Security Disability Income

SSI - Supplemental Security Income (a type of Social Security