Along with moral obligation, the brother is left all the family assets and the authority and responsibility of making decisions on behalf of his sister. The Special Needs Trust acts as protective envelope in which to hold assets for the use of the incapacitated person, and is not subject to governmental or other creditors. In practice I often recommend using life insurance in a Special Needs Trust to provide funds as a source of additional income for an incapacitated individual. The continued care and comfort of an incapacitated child is most uncertain after the death of the life-long natural caregivers and advocates, the parents. The whole purpose of life insurance is to provide protection against the real financial loss that results from death.
Life insurance pays substantial tax-free dollars upon the death of the insured.
For the incapacitated person, these tax-free dollars can make a huge difference in the quality of his or her future. Some planners prefer a specially designed joint life policy which pays the Special Needs Trust upon the death of the second spouse. The cost is a fraction of what an individual policy might be because it covers two lives. This type of estate planning sounds complicated when you haven't done it. When it has been done properly, parents can rest assured with the knowledge that their special child will always be cared for, especially when that care is needed the most.