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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Estate Law
Satisfied Customers: 118069
Experience:  Experienced in Trust and Succession Law, including Louisiana Laws
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If a person loses their "special needs" diagnosis, what

Customer Question

if a person loses their "special needs" diagnosis, what happens to assets in a special needs trust
Submitted: 1 year ago.
Category: Estate Law
Expert:  Law Educator, Esq. replied 1 year ago.

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

In the event a special needs beneficiary loses their special needs designation, the trust can 1) become a regular irrevocable trust or 2) because the legal purpose of the trust no longer exists, the trust would be dissolved and terminated and the contents of the trust go to the beneficiary. It depends on the wording of the trust. Absent any wording in the trust saying that it would convert to irrevocable trust, it would typically dissolve as the purpose is no longer existing.