What is a Special Needs Trust?

A Special Needs Trust is a legal arrangement in Rhode Island that allows individuals with disabilities to receive money or assets without losing eligibility for government benefits. The trust is created by a parent or guardian of a person with a disability, or by the disabled person (if allowed by law). The funds in the trust are used to pay for items and services that are not covered by government aid. The purpose of a Special Needs Trust is to provide supplemental resources to improve the quality of life of a person with a disability without impacting that person’s eligibility for government benefits. Money in the trust can be used to pay for medical and health care services, educational and recreational activities, and special equipment. The trust is managed by a trustee, who is responsible for making sure the funds are used for the benefit of the disabled person. The trustee must also ensure that the spending does not affect the disabled person’s eligibility for government benefits such as Medicaid or Supplemental Security Income (SSI). The funds should not be used for food, clothing, or shelter, as this could result in a loss of benefits. A Special Needs Trust is an invaluable tool for individuals with disabilities, providing them with greater independence and quality of life. It is important to consult with a qualified attorney to ensure the trust is properly drafted and managed.

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What is a Special Needs Trust?

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