Young, Hassan Introduce Bill to Improve Special Needs Trusts

Press Release

Yesterday, U.S. Senators Todd Young (R-Ind.) and Maggie Hassan (D-N.H.) introduced the Special Needs Trust Improvement Act of 2022 to give families greater flexibility in choosing the remainder beneficiary of trusts established for a loved one who has a disability or chronic illness.

The Setting Every Community Up for Retirement Enhancement (SECURE) Act, signed into law in 2019, empowered families to better plan for loved ones with a disability or chronic illness by allowing retirement funds placed in a Special Needs Trust to be distributed over the lifetime of the individual in lieu of the default ten-year payout rule. While this legislation was an important step towards ensuring families could plan for loved ones with disabilities or chronic illnesses, it did not allow families to name charitable organizations as remainder beneficiaries of Special Needs Trusts. This gap constrains families from fully implementing their financial planning goals and supporting charitable organizations while also providing for their loved ones with special needs. The Special Needs Trust Improvement Act of 2022 closes this gap and gives families the flexibility they need to make informed decisions regarding their retirement funds.

"Hoosier families of individuals with special needs who use their retirement savings to plan for the care of their loved ones should not be restricted from also giving to charitable organizations. I'm proud to work with Senator Hassan on this bipartisan bill to provide relief to these families and the communities that support them," said Senator Young.

"Parents with children experiencing disabilities have unique considerations when writing a will," said Senator Hassan."When designating beneficiaries for a Special Needs Trust, parents will often name a second beneficiary, such as their child's service provider. This bipartisan bill will extend flexibility to these families, ensuring that parents have peace of mind that their wishes will be honored and that their children will get the care that they need."

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