What is a special needs trust?

A special needs trust, or SNT, is a type of trust created specifically for a person with a disability. It is used to manage finances for someone who receives government benefits but still needs additional funds to cover their care. It allows the individual to receive money without losing those benefits. The SNT is run by a trustee, usually a responsible family member or friend, who is responsible for managing the trust. The trust funds are used for the benefit of the beneficiary, either for a specific purpose, or for discretionary services such as medical care or recreational activities. The trustee has a legal obligation to manage the funds for the beneficiary’s benefit and to use them in the best interest of the beneficiary. One of the advantages of an SNT is that it can provide additional funds to the beneficiary while still allowing them to receive government benefits. The trust funds can be used to pay for medical or other expenses that would not be covered by those benefits. Additionally, money inside the trust can be used to purchase items that are not funded by the government. Overall, a special needs trust is a great way to provide additional funds to someone with a disability while still protecting their eligibility for government assistance. It is important to consult an experienced attorney to ensure that the trust is properly established and managed.

Related FAQs

What is a trusted advisor?
How can I protect my assets when applying for public benefits?
What is Social Security Disability Insurance (SSDI)?
What is a Medicaid trust?
What is the definition of a disability?
What is the difference between Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI)?
How can I find a disability lawyer?
What is my obligation to report changes in my health or income?
What is a disability review?
Who is eligible for SSDI benefits?

What is a special needs trust?

Related FAQs

Related Blog Posts