What is a special needs trust?

A special needs trust (SNT) is a type of trust designed specifically to benefit individuals with disabilities or special needs. The trust allows someone with a disability to receive money or other assets and use that money to pay for their needs without having to worry about it affecting their eligibility for public benefits like Social Security or Medicaid. Special needs trusts are set up by a person’s family or friends, a court, or an organization, and can also be funded by existing assets or money from a settlement or inheritance. In California, special needs trust are authorized by state law and are considered restricted trusts, meaning that the funds must be used for the sole benefit of the disabled person. The trust must be managed in a way that will not prohibit that person from receiving any public assistance or other benefits. This includes making sure that the benefits are spent directly on the disabled person’s needs and not for any other purpose. The goal of a special needs trust is to ensure that disabled individuals can still receive the benefits they need to live a full, independent life. As such, it is important to make sure that the trust is established properly and that the funds are being managed and spent in a way that complies with California law.

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