Schneider, Walorski Introduce Bipartisan Special Needs Trust Act

Press Release

Date: Aug. 3, 2022
Location: Washington, DC

Today, Congressman Brad Schneider (IL-10), along with Congresswoman Jackie Walorski (IN-2), announced the introduction of the bipartisan Special Needs Trust Act of 2022 to allow the families of loved ones with chronic illness or disability to have greater flexibility in choosing the remainder beneficiaries for their Special Needs Trust.

"Families across Illinois and the United States do everything to support their loved ones with disabilities and special needs. I'm proud to say that this bipartisan legislation will support those families in caring for their loved ones and will ensure a strong financial future for them and their families," said Congressman Schneider. "Many families make the decision to designate charitable organizations for their loved one's health service provider as beneficiaries for their Special Needs Trust. I look forward to passing this common-sense legislation, and I will continue to advocate for all of our neighbors with special needs and their families to live lives filled with security, dignity, and happiness."

"Every American is worthy of a secure future. I'm proud to advance commonsense solutions to help individuals with special needs and their families plan for strong and vibrant years ahead. Our bipartisan legislation will expand options for these Americans as they save and plan," said Congresswoman Walorski. "Offering more flexibility and freedom for Special Needs Trusts will empower Hoosiers and Americans across the country to achieve bright financial futures."

The Setting Every Community Up for Retirement Enhancement (SECURE) Act, signed into law in 2019, strengthened families' abilities to plan for loved ones with chronic illnesses or disabilities by permitting retirement savings stored within Special Needs Trusts to pay out over the entire life of the individual, rather than over the standard ten-year payout rule.

While the bipartisan SECURE Act empowered families and those with chronic illnesses or disabilities to feel more secure in their future wellbeing, it did not authorize families to designate charitable organizations as the remainder beneficiaries of a Special Needs Trust, limiting those families' abilities to carry out their long-term financial goals to support their loved ones with special needs and support organizations dedicated to charitable endeavors. The Special Needs Trust Act of 2022 would remove this restriction and provide families the freedom and flexibility they need to determine for themselves how to financially plan their retirement funds and special needs trusts.