Owing to the dramatic change in Korea’s family structure, the traditional patriarchal family system was legally abolished. A new legal framework is therefore necessary to ensure the traditional care function of the extended family is adequately replaced. This chapter focuses on the reform of Korea’s adult guardianship system and trust system. It first analyses the background of the Trust Law in Korea, which leads to the rare use of non-commercial trusts traditionally. It then discusses the relationship between guardianship and trusts as new legal frameworks, and introduces a new perspective on special needs trust to enhance protection of individuals with cognitive impairment. This chapter also reviews the pilot project for developmental disability trusts run by the Autism Society of Korea. It shows that while the project has attracted significant attention from disabled persons and their family members, there are still several major issues to be addressed for the future development of special needs trust in Korea.

This chapter evaluates the operation of Midwest Special Needs Trust (MSNT), an organisation created to establish and administer special needs trusts. A special needs trust is used as a fiduciary tool to serve persons with disabilities so that their assets do not affect the eligibility of means-tested social benefits. It starts with an account of the history of MSNT, and then examines the specific definitions and requirements of MSNT trust accounts, the roles and responsibilities of the Trustee and co-trustees, and the merits of MSNT. This chapter also considers important aspects of the administration of MSNT, such as the establishment and termination of trust accounts, staffing, fees and expenses, data management, and investment policy. Real-life cases are discussed throughout to show how MSNT helps to improve the quality of life of the disabled. This chapter concludes with thoughts on the future development of special needs trusts, including MSNT service enhancements and other financial tools, to assist the population with disabilities.