What is a special needs trust?

A special needs trust, also known as a supplemental needs trust or SNT, is a legal tool that allows people with disabilities in Texas to receive money, gifts, or benefits without losing their eligibility for public benefits. This trust helps ensure that people with disabilities can access the resources they need to lead a better quality of life while still maintaining their eligibility for government programs like Medicaid and Social Security. The trust helps protect assets from being used to cover medical or living expenses, and it also helps manage income and assets to prevent them from being used inappropriately or becoming subject to creditors. Usually, the money is held in the trust and managed by the trustee, who is responsible for making distributions for the beneficiary’s benefit. The trustee must ensure that all distributions are being used for the benefit of the beneficiary and that none of the funds are being used to pay for their medical or living expenses that could disqualify them from public benefits. Another important aspect of special needs trusts is that it allows parents and other family members to leave money to the beneficiary without jeopardizing their eligibility for government benefits. This money can be used to fund medical care, education, transportation, housing, and other services that may not be covered by public benefits.

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What is a special needs trust?

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