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

A revocable living trust and a special needs trust are both legal documents that individuals can use to manage assets. However, there are several key differences between these two trusts. A revocable living trust is a legal document that allows an individual to transfer ownership of assets and property during their lifetime. This type of trust is known as “revocable” because the individual can modify or revoke the trust at any time. A revocable living trust is often used for estate planning purposes or for providing for a disabled beneficiary. A special needs trust is a legal document that is specifically designed to provide for the needs of individuals with disabilities. This type of trust is established with the intention of providing financial support without disqualifying the beneficiary from governmental assistance programs such as Medicaid or Social Security. Unlike a revocable trust, a special needs trust cannot be modified by the grantor. Usually, a third-party trustee is appointed to manage the trust and ensure that the funds are used properly. In summary, the primary difference between a revocable living trust and a special needs trust is that the former is revocable and the latter is not. Revocable living trusts are typically used for estate planning purposes, while special needs trusts are specifically designed to provide financial support for individuals with disabilities.

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

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