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 types of trusts that someone can create to benefit another person. A revocable living trust is a trust that someone creates to hold their assets for themselves and to be used for their benefit after they become incapacitated or pass away. It can also be changed or revoked by the creator while they are still alive. Meanwhile, a special needs trust is a trust that is designed to provide a specific disabled person with the necessary funds needed to pay for medical, educational, or living expenses that are not covered by other government assistance or insurance. The main difference between a revocable living trust and a special needs trust is the purpose of the trust. A revocable living trust is typically used for estate planning and to provide for the creator or their heirs upon their passing, while a special needs trust is designed specifically to benefit someone who is disabled or incapacitated and is unable to care for themselves. In North Carolina, both revocable living trusts and special needs trusts are subject to Disability Planning Law. The law defines who can create and manage the trust, sets limits on the total amount that can be placed into the trust, and details how the trust can be used.

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

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