What Is a Standby Special Needs Trust for Muslims?

 Posted on March 27, 2025 in Estate Planning

Parents of children who have disabilities may feel equally blessed and challenged. Of course, there is a wide spectrum regarding the term "disability." While some disabilities will bring challenges, the child will grow up to lead what is generally considered a "normal" life in that they can seek educational opportunities and work to make a living.

Other disabilities can hinder educational and employment opportunities. In some cases, it can be difficult to know for certain what the future of a child with disabilities looks like. Situations that seem extremely precarious can change over time. In other cases, disabilities can occur once a child is an adult, resulting in family conflict.

This can lead to dilemmas for Muslim parents who want to help their adult child through estate planning methods without violating Islamic inheritance rules. If you are struggling with a similar issue, it can be extremely beneficial to speak to an experienced Oakbrook Terrace, IL lawyer with significant experience in Islamic law.  

What Are the Issues Regarding a Special Needs Adult Child?

Depending on the level of disability, parents may believe their special needs child will need more assistance as an adult; therefore, a larger inheritance. If, however, the child qualifies for and receives public benefits, the parents may not want these benefits to be lost because of an inheritance. While this is an issue for parents of any faith, Muslim parents may choose to incorporate Islamic estate planning when making these decisions.

Islam urges non-disabled Muslims to deal equally with disabled individuals, establishing the responsibility and duty of society towards its disadvantaged. One way to accomplish this is through a standby special needs trust. For example, a couple has four children, and the eldest has Down Syndrome. Since the child is currently only eight years old, it is unknown exactly what care the child will need as he gets older. What will his marriage prospects be? Will he have children? Will he be able to work and make a living? Will he live an independent life?

With all these unknowns, one good solution could be a standby special needs trust in conjunction with an Islamic Inheritance Plan as part of a living trust or last will and testament. One parent is usually named as the trustee of a standby special needs trust, while the other parent or another relative is named as the successor trustee. The standby special needs trust is drafted so that the funds are prevented from being an available resource used to determine eligibility for public benefits.

The difference here is that if the child reaches the age of 18 and the trustee determines there is no need for a special needs trust, he will receive his inheritance exactly like the other children, based on their Islamic rights. If the child does need governmental benefits, the trustee will only make distributions that do not affect that eligibility. Even if the child is generally able to lead a normal life as an adult, sometimes those on the spectrum may be too trusting of the world we live in.

In this case, the standby special needs trust would remain in effect, not necessarily to allow government benefits but to ensure the inheritance is not exploited by untrustworthy people. The trustee would continue to ensure the adult child has what he needs while remaining protected to some extent. A living trust can also be used for an adult who has lost his or her executive decision-making abilities because of age, illness, or an accident through a "disability panel."  

Contact a DuPage County, IL Estate Planning Attorney

Every family needs to create a system that protects its assets and dignity while fulfilling the obligations required by Islamic inheritance. An Oakbrook Terrace, IL estate planning lawyer from Farooqi & Husain Law Office is ready to help you through the process. Attorney Husain couples his legal experience with a broad knowledge of Islamic family law and Islamic estate planning, while Attorney Farooqi is one of the few Muslim attorneys with a deep understanding of the intersection of Islamic personal law and U.S. law. Call 630-909-9114 to schedule an initial attorney meeting.