A Special Needs Trust (SNT) is a legal and financial arrangement designed to provide financial support and security for individuals with disabilities, without jeopardizing their eligibility for government assistance programs like Medicaid and Supplemental Security Income (SSI). This trust is an invaluable tool for families who want to ensure that their loved ones with special needs receive the care and support they require throughout their lives.
How Does a Special Needs Trust Work?
A Special Needs Trust is typically established by a parent, grandparent, or legal guardian on behalf of a person with a disability. It can also be set up by the individual with a disability themselves, provided they have the legal capacity to do so.
Once the trust is established, assets are placed into it. These assets can include cash, real estate, investments, life insurance proceeds, or any other valuable items. The trust is managed by a trustee, who is responsible for administering the funds and making distributions on behalf of the individual with special needs. No the individual can NOT be their own trustee.
The Key Benefits of a Special Needs Trust:
Types of Special Needs Trusts:
A Special Needs Trust is a compassionate and strategic financial planning tool that ensures individuals with disabilities receive the care and support they deserve while protecting their eligibility for vital government benefits. If you have a loved one with special needs, consult with an experienced attorney to explore the best options for securing their financial future and enhancing their quality of life.