Disabled Military Protection Act Allows Military Families to include Special Needs Trusts within the Survivor Benefit Plan
Disabled Military Protection Act Allows Military Families to include Special Needs Trusts within the Survivor Benefit Plan. Currently, under the Survivor Benefit Plan (SBP), a military retiree can set aside up to 55 percent of his monthly retirement pay to provide their family members with a monthly stipend, after he or she dies. However, these benefits are counted as income and can prohibit a dependent child with disabilities from receiving Medicaid and Social Security Disability Insurance assistance. According to Militaryfamily.org, the “Disabled Military Child Protection Act of 2012” (H.R. 4329) was introduced by Congressman Jim Moran in order to provide long-term care for severely disabled children of service members.
The “Disabled Military Child Protection Act” would also allow for military retirees who invest in a Survivor Benefit Plan (SBP) to transfer these benefits to a special needs trust (SNT) for their child with special needs. A special needs trust (also called a supplemental needs trust) is made with the intent to provide supplemental funds to a fiduciary for the benefit of a person with a disability. The trust is not considered as a type of available asset or resource, ensuring that it will not affect or disrupt any Government benefit programs (SSI, Medicaid) that are already in place.