Enabling Payment of Survivor Benefit Plan Annuities to a Special Needs Trust

The DOD now allows assignment of military Survivor Benefit Plans (SBP) to a valid d4A special needs trust for a dependent disabled child. Previously, military members and retirees may have been advised to NOT designate a child with a disability as the beneficiary under such a plan. The new law allows SBP payments to be paid to a self-settled trust without jeopardizing an individual’s SSI / Medicaid benefits. Any such assignment must be irrevocable in order to qualify.

More information is available at the Military OneSource Special Needs page:

http://www.militaryonesource.mil/family-and-relationships/special-needs

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