The Foundation of the Arc of Northern Virginia establishes Special Needs Trust (SNT) for Military Survivor Benefits Plans.
Congress passed the National Defense Authorization Act of 2015, which allows military members and retirees to irrevocably assign annuity payments from Survivor Benefit Plans (SBP) to a Special Needs Trust (SNT) for the benefit of their dependent child who is disabled. The SNT must be established as a Self-Funded (First-Party) SNT. The SF SNT does not jeopardize the Beneficiary’s eligibility for means-tested government benefits, such as Supplemental Security Income (SSI) and Medicaid. These SNTs also allow for military parents to have peace of mind knowing that their SBP annuity funds will be secured for their dependent child.
An Attorney Certification Letter signed by an attorney for the SNT, as well as a letter signed by the military parent, must be provided to the Defense Finance and Accounting Service (DFAS). The cover letter should state the military personnel’s relationship to the beneficiary (child), that SBP funds will be directed into an existing SNT, and include the Beneficiary’s SSN.
Our Trust Team helps you prepare all of the above documents for you to provide to DFAS. SBP coverage for the dependent child can also be elected upon or after the death of a member or retiree. If you would like to learn more about assigning SBP into SNTs, please join us at a Trust Talk Tuesday to learn more. Please visit our Events web page for more information: https://thearcofnovatrust.org/events/.
For more information, please visit: http://www.military.com/daily-news/2016/01/09/benefit-change-approved-for-retirees-with-special-needs-children.html.