• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • Our Firm
    • About Our Firm
    • Attorney and Staff Profiles
  • Services
    • Asset & Business Planning
    • Dental Practice Law
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses & Farms
    • Financial Planning Assistance
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Medicaid and Elder Law
    • SECURE Act
    • Special Needs Planning
    • Trust Administration
  • Elder Law
    • Coping With Alzheimer’s
    • Emergency Medicaid & Nursing Home Planning
    • Guardianship & Conservatorship
    • Hospice Care
    • Medicaid Planning
    • Veteran’s Benefits
  • Resources
    • DocuBank
    • Elder Law
      • Elder Law & Medicaid Definitions
      • Elder Law Reports
      • Elder Law Resources
        • Carmel, Indiana Elder Resources
        • Fishers Indiana Elder Law Resources
        • Greenfield, Indiana Elder Law Resources
        • Greenwood Elder Resources
        • Indianapolis Elder Law Resources
        • Lawrence Elder Law Resources
        • Plainfield Elder Resources
        • Zionsville Elder Law Resources
    • Estate Planning
      • Estate Planning Checkup
      • Estate and Gift Tax Figures
      • Estate Planning Definitions
      • Estate Planning Reports
        • Advanced Estate Planning
        • Basic Estate Planning
        • Estate Planning for Niches
        • Trust Administration
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Top 10 Estate and Legacy Planning Techniques
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Asset Protection Planning
        • Business Succession Planning
      • Elder Abuse
      • Elder Law
        • Medicaid
        • Medicaid Planning
        • Planning for Long-Term Care
      • Estate Planning
        • Avoiding Estate Taxes
        • Frequently Asked Questions for Families Without an Estate Plan
        • LGBTQ Estate Planning
        • Women and the Need for Estate Planning
      • Financial Planning
      • Incapacity Planning
      • Legacy Wealth Planning
      • Pet Planning
      • Philanthropy in Your Estate Plan
      • Probate
      • Power of Attorney
      • Small Estate Administration
      • Trusts
        • Trust Administration
        • Trust Administration
        • Serving as Executor
      • Understanding Your Social Security Retirement Benefits
      • Wills
        • Contesting a Will
    • Newsletter
    • Pre Consultation Form
    • Probate and Trust Administration
      • Bereavement Resources
      • How to Know if You Need Extra Help With Your Grieving
      • Loss Of A Loved One
      • Probate Resources
        • Carmel, Indiana Probate Resources
        • Greenfield Probate
        • Greenwood Probate
        • Indianapolis Probate
        • Plainfield Probate
        • Indiana Probate
        • Zionsville Probate
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
  • Reviews
    • Our Reviews
    • Review Us
  • Areas We Serve
    • Boone County
      • Lebanon
      • Zionsville
    • Hamilton County
      • Carmel
      • Fishers
    • Hancock County
      • Greenfield
    • Hendricks County
      • Brownsburg
      • Plainfield
    • Johnson County
      • Franklin, Indiana
      • Greenwood
    • Marion County
      • Central Indiana
      • Indianapolis
  • Blog
  • Contact Us

Frank & Kraft, Attorneys at Law

Indianapolis Estate Planning Attorneys

CONNECT WITH US TODAY(317) 684-1100

Attend a Free Workshop
Home » What Is a Memorandum of Intent for a Special Needs Trust?

What Is a Memorandum of Intent for a Special Needs Trust?

April 21, 2022Special Needs Trust

Indianapolis special needs planning attorney

If you are the parent of a child with special needs, you know that there are practical and financial challenges you must face raising a child with special needs. The need to have a comprehensive estate plan in place is heightened when you are concerned with protecting and providing for a child with special needs. As part of your estate plan, you may choose to include a special needs trust to ensure that your child is financially secure both now and in the future. An Indianapolis special needs planning attorney at Frank & Kraft explains why you may also wish to create a Memorandum of Intent for your special needs trust.

Special Needs Planning in Your Estate Plan

Most parents consider providing for their children to be an important estate planning goal. When the child you are providing for has special needs, however, extra care must be taken to provide financial assistance within your estate plan because making direct gifts can do more harm than good. If your child depends on assistance from government programs such as Supplemental Security Income (SSI) or Medicaid, a direct gift of money or assets could jeopardize your child’s continued eligibility for that assistance. Once your child reaches the age of majority, the law will consider him/her to be a legal adult, without regard for your child’s abilities or functional level. As such, your child’s eligibility for SSI and Medicaid will be determined, in part, on the value of his/her resources. Gifts made to your child, either while you are alive or after you are gone could easily put your child’s resources over the threshold for eligibility. Fortunately, through careful estate planning you can avoid such a scenario.

What Is a Special Needs Trust?

A Special Needs Trust, also referred to as a Supplemental Needs Trust (SNT), is a specialized type of irrevocable living trust that allows you to set aside assets to be used to “supplement” the assistance provided by programs such as SSI and Medicaid. The assets held in a SNT can be used to pay for comforts and luxuries that cannot be paid for by public assistance funds. A properly drafted Special Needs Trust ensures that assets can be set aside for your child without worrying about the loss of much needed assistance. Among the many additional benefits of creating a SNT is the fact that other family members may also contribute to the trust, either while they are alive or in their estate plan.

What Is a Memorandum of Intent?

A Memorandum of Intent, also referred to as a “Letter of Intent,” is an optional companion document to a Special Needs Trust. Creating a Memorandum of Intent (MOI) allows you to put down in writing important information that your Trustee should know about your child. Given that your Trustee will be responsible for deciding how and when assets from the SNT are distributed, it only makes sense that your Trustee should know as much as possible about your child’s abilities, routines, likes and dislikes, and any interests they may have. Although an MOI is not a legally binding document, it can be a very valuable addition to your SNT because it helps your Trustee with the practical aspects of administering the trust. If you have chosen the right Trustee, the information you include in your MOI will be invaluable given the fact that your child may not be capable of communicating that same information to the Trustee. This is your opportunity to give your Trustee as much guidance as possible. You may, for example, wish to include family and medical history, religious beliefs, and favorite activities, as well as some background information on your child’s upbringing. It is also a good idea to include information pertaining to the people and relationships that are important to your child in the MOI because those people can be an invaluable resource to your Trustee. Finally, if you have any specific wishes or hopes for your child’s future, include those in your Memorandum of Intent so your Trustee can ensure that those wishes are honored.

Contact an Indianapolis Special Needs Planning Attorney

For more information, please join us for one of our a FREE seminars. If you have specific questions about how a Memorandum of Intent can help you protect and provide for your child with special needs, contact an experienced Indianapolis special needs planning attorney at Frank & Kraft by calling (317) 684-1100 to schedule an appointment.

  • Author
  • Recent Posts
Paul A. Kraft, Estate Planning Attorney
Paul A. Kraft, Estate Planning Attorney
Paul Kraft is Co-Founder and the senior Principal of Frank & Kraft, one of the leading law firms in Indiana in the area of estate planning as well as business and tax planning.

Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.
Paul A. Kraft, Estate Planning Attorney
Latest posts by Paul A. Kraft, Estate Planning Attorney (see all)
  • Updated Federal Gift and Estate Tax Figures for 2023 - January 26, 2023
  • Why Estate Planning Is Important for Multi-National Couples - January 24, 2023
  • When Do I Need to Update a Trust Agreement? - January 19, 2023

Other Articles You May Find Useful

Indianapolis special needs planning attorney
Are There Different Types of Special Needs Trusts?
special needs trust in the Medicaid
Can Medicaid Recover Assets From a Special Needs Trust?
Frank & Kraft, Attorneys at Law
Free Report: What Is a Special Needs Trust in Indiana

Primary Sidebar

Frank & Kraft, Attorneys at Law

Download our free Estate Planning Worksheet

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

Follow Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube

Blog Subscription

Where We Are

Frank & Kraft Attorneys at Law
135 N. Pennsylvania Street Suite 1100
Indianapolis, IN 46204-2485
Phone: (317) 684-1100
Fax: (317) 684-6111

See Larger MapGet directions

Office Hours

Monday8:00 AM - 5:00 PM
Tuesday8:00 AM - 5:00 PM
Wednesday8:00 AM - 5:00 PM
Thursday8:00 AM - 5:00 PM
Friday8:00 AM - 5:00 PM

Map

frankkraft_sidbr_map

Footer

  • Advantages of Working With Our Firm
  • About The American Academy
  • Disclaimer
  • Privacy Policy
  • Sitemap
  • Contact Us

Connect with Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube
footer-logo

Frank & Kraft Attorneys at Law
Attorney Advertisement

© 2023 American Academy of Estate Planning Attorneys, Inc.

© 2023 · American Academy of Estate Planning Attorneys, Inc. | Disclaimer | Privacy Policy | Sitemap | Contact Us