‘Trusts are a general tool that are beneficial in many financial planning situations. Many trust benefits, such as asset protection and control, are appropriate considerations for a family with a special needs person. Which of the following is generally correct regarding special needs trusts?

• Family trusts can be established but will likely cause the child to lose federal benefits.

• A special needs trust under 42 U.S.C. Sec. 1396p(d)(4)(A) will permit a family member to contribute to the trust for the benefit of the special needs child without adversely effecting government benefits if funds are paid back to the State to the extent of the benefit at the death of the child.

• A pooled trust can be established. Banks and brokerage firms establish many of these trusts.

• A life insurance trust is prohibited from to assist with the needs of a special needs child.