What is a special needs trust?
A special needs trust is a type of legal trust created with the purpose of protecting the assets of a person with a disability while still allowing them to maintain government benefits. In Rhode Island, special needs trusts are regulated by Disability Planning Law. This law allows for the creation of a trust by an individual or guardian that is designed to benefit a person with a disability while not impeding the person’s eligibility for government assistance programs such as Supplemental Security Income (SSI) or Medicaid. When creating a special needs trust, the individual or guardian must name a trust protector—typically a financial professional—as an advocate for the disabled person. This protector is responsible for overseeing the trust and protecting the assets of the disabled individual. The trust protector can also help manage the trust funds and ensure that the disabled individual remains eligible for government benefits. The trust can also be used as a way to provide for any extra expenses that the disabled person may need during their lifetime or after their death. For example, the trust can be used to fund additional medical treatments, educational programs, recreational activities, and more. The trust funds cannot be used to supplant government benefits, but can be used to supplement them. In Rhode Island, the Disability Planning Law protects the rights of disabled individuals by ensuring that their assets remain secure while allowing them to maintain eligibility for government assistance programs. Special needs trusts are an important part of this law and provide an effective way to protect and provide for the disabled individual’s needs.
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