What is a Special Needs Trust?
A Special Needs Trust (SNT) is a legal document that allows individuals with disabilities to set aside money or assets that can be used to supplement their disability benefits without impacting their eligibility for those benefits. A SNT must be set up by a third party and usually funded with assets such as money, real estate, life insurance, stocks, and bonds. The trust enables individuals with disabilities to manage their funds and retain some control over how the funds are used. The trust must be managed by trustees who make decisions regarding the trust assets, as well as how and when the funds are spent. It is important to keep in mind that the funds must be used solely to benefit the individual with the disability and not for the benefit of the trustees or other parties. A SNT may also help protect assets from creditors or legal claims. In Washington, SNTs are governed by the Washington Uniform Trust Code, which outlines specific rules that must be followed when creating and managing these trusts.
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