What is a special needs trust?
A special needs trust is a type of trust created to provide financial assistance for a person with a disability who is eligible for some form of government assistance. This trust is designed to ensure that the beneficiary does not become disqualified from receiving benefits due to the income or other assets held in the trust. In South Carolina, these trusts are governed by the South Carolina Special Needs Trust Act, which provides guidance on how the trust can be set up and administered. The trust typically works by providing a specific amount of money in installments or as a lump sum to the beneficiary. The trust can be used to pay for certain health care services, medical equipment, and other approved needs. For example, a special needs trust might pay for a wheelchair or special adaptive equipment, cover certain medical expenses, or even provide funds for recreational activities. The trust can also be used to provide money for educational or vocational training programs and job programs to help the person with a disability become more independent. In South Carolina, when setting up a special needs trust, the settlor must provide details on who will receive the money, the amount of money to be distributed, and how and when it will be distributed. Additionally, the trust must be carefully managed to ensure compliance with state and federal laws. Once established, the trust can provide much needed financial assistance to people with disabilities and help ensure their needs are met.
Related FAQs
What rights do I have under the ADA?How often do I have to re-apply for disability benefits?
When should an Advanced Medical Directive be used?
What is the purpose of Disability Planning Law?
What kind of assistance is available for disabled veterans?
What is a supplemental security income (SSI) trust?
What are the benefits of a living will?
How do I create a special needs trust?
What is a protected trust?
What is a disability attorney?
Related Blog Posts
Explaining the Basics of Disability Planning Law - July 31, 2023Preparing a Comprehensive Estate Plan with Disability Planning Law in Mind - August 7, 2023
Creating an Estate Plan to Provide Financial Security for Individuals with Disabilities - August 14, 2023
Important Considerations When Drafting a Disability Planning Document - August 21, 2023
The Advantages of Working with a Disability Planning Lawyer - August 28, 2023