What is a special needs trust?

A special needs trust is a legal tool used to help people with disabilities plan for their financial future. It is designed to provide financial support for an individual with a disability who is either receiving, or is likely to receive, public benefits. In New Hampshire, a special needs trust must be established in accordance with section 514 of the Uniform Trust Code, of the New Hampshire Revised Statutes. A special needs trust is a type of trust that allows a person with a disability to preserve eligibility for government benefits such as Medicaid and Supplemental Security Income (SSI). A special needs trust is funded with assets of the person with a disability, which can be used to pay for items and services not provided by government benefits. These items and services might include medical expenses, education, recreation, transportation, etc. The trust can also be used to supplement the beneficiary’s basic needs and quality of life, such as personal care attendants and vacations. A special needs trust can be set up and managed by a family member, caretaker, or financial professional, who will administer the trust according to the terms and instructions of the trust document. With a special needs trust, the individual with a disability is able to receive assets while still being eligible for government benefits. This is an important consideration since many government benefits are limited and will not provide sufficient care or support for the disabled individual.

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