What is the difference between a revocable living trust and a special needs trust?

The difference between a revocable living trust and a special needs trust lies in their purpose. A revocable living trust is an estate planning tool used to manage assets and withhold them from probate. Additionally, it allows for a named trustee to manage the trust assets and provide flexibility to the grantor in the event of incapacity or death. A special needs trust, however, is a trust designed primarily to provide for the needs of persons with disabilities. The trust can provide for the future needs of a disabled individual without disqualifying them for government benefits, such as Supplemental Security Income (SSI) and Medicaid. This type of trust is also designed to provide funds to a disabled individual without preventing them from maintaining their eligibility for government benefits. Additionally, a special needs trust may provide supplemental funds that are not available through public benefits, as well as services that are not funded by the government. This type of trust may not be revocable; however, a trust protector or other third-party should be consulted to ensure that the terms of the trust are followed. In conclusion, a revocable living trust and a special needs trust have different purposes. A revocable living trust is used to manage assets and withhold them from probate, while a special needs trust is used to provide funds and services to individuals with disabilities in order to supplement public benefits.

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What is the difference between a revocable living trust and a special needs trust?

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