What Happens to a Special Needs Trust When a Child Dies? | NC

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Q: What happens to a special needs trust when the minor beneficiary passes away? A: The trust usually ends if its terms say it terminates at the beneficiary’s death, or if no purpose remains. The trustee must review the trust document rather than assume the assets become part of the child’s probate estate. Next, the trustee identifies valid expenses, debts, and any required Medicaid repayment. A…