U.S. Senators Todd Young (R-Ind.) and Maggie Hassan (D-N.H.) have introduced the Special Needs Trust Improvement Act of 2022 in the Senate and Congresswoman Jackie Walorski (R-Ind.) will soon be introducing the House companion to the bill with Congressman Schneider of Illinois.
If enacted into law the Special Needs Trust Improvement Act of 2022 willl give families greater flexibility in choosing the remainder beneficiary of trusts established for a loved one who has a disability or chronic illness.
Federal legislation signed into law in 2019, allows retirement funds placed in a special needs trust, like The Arc of Indiana Master Trust, to be distributed over the lifetime of the individual in lieu of the default ten-year payout rule. However, it does not allow families to name charitable organizations as remainder beneficiaries. The Special Needs Trust Improvement Act of 2022 addresses this issue.
The Arc of the United States and The Arc of Indiana support the legislation.
Hannah Carlock, The Arc of Indiana’s director of public policy said, “Whether you have a disability or not, we are all planning for the future, but families with an individual with a disability always have a worry of what will happen to their loved one when all other family members are gone. The Special Needs Trust Improvement Act of 2022 gives peace of mind to these families and individuals with disabilities so they can prepare for the future by not only investing in a special needs trust but also supporting organizations that will continue to serve and provide for loved ones when all other family supports are gone.”
William and Lynda Smith of Greensburg, Indiana said, “We saved not only for our retirement but to also ensure that our daughter with Down syndrome has a quality life when we are gone. Yet we also want to support the nonprofit organizations who have assisted her. Senator Young’s Special Needs Trust Improvement Act of 2022 will allow us to do both in our planning.”
The Arc Master Trust offers families and people of all disabilities an experienced, professional option for special needs trust administration at an affordable price, allowing resources to be saved and easily used for qualified disability and personal expenses.