Recent Class Action Lawsuit Alleges Misappropriation of Special Needs Trust Funds

Insurance partner Sandra Jones authored an article in The Legal Intelligencer discussing a recent class action lawsuit alleging the misappropriation of special needs trust funds. Special needs trusts (SNTs) are a type of trust that allows the beneficiary, who is often times a minor; and incapacitated in some way, the ability to receive the property held in the SNT while, at the same time, maintaining eligibility to receive needs-based government benefits.

Jones describes the process of SNT payments through professional trust companies. Some beneficiaries rely on periodic payments paid through a structured settlement annuity for their very daily survival, i.e., paying for round-the-clock skilled nursing care, life supporting machinery, and even housing and transportation to medical appointments.

In the article, she addresses the lawsuit’s scenario of some trustees “losing” the funds, and the SNT that is relied on by the beneficiary for daily support has a zero balance. 

The full article is available to ALM subscribers.