What is a Special Needs Trust?

A Special Needs Trust (SNT) is a type of trust designed to provide financial assistance to an individual with a disability while still preserving their eligibility for benefits through government programs like Social Security Income (SSI) and Medicaid. An SNT is created to supplement the basic needs of a person with a disability, such as food, shelter, clothing, medical care, and education. It is established by the disabled person’s parents, relatives, or other friends and set up for the benefit of the disabled person. The trust is governed by a trustee, who is responsible for managing the funds in the trust and ensuring that the disabled person receives the necessary benefits and services. The trustee must comply with the relevant state and federal regulations and laws regarding the trust’s establishment, investment of assets, and distribution of funds. In California, a Special Needs Trust can be created with assets owned by the disabled person or by someone else, such as a parent, relative, or friend. The trust can direct funds towards medical expenses, educational expenses, or any other need specified by the trust. Funds in the trust must be used solely for the benefit of the disabled individual and cannot be used for any other purpose or by any other person.

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What is a Special Needs Trust?

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