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 can be boiled down to what each trust is designed for. A revocable living trust is a legal document that is used to manage assets and protect them from creditors and taxes. It is created by the owner of the trust while they’re still alive, and they can choose who they want to manage the trust when they pass away. This type of trust is often used to avoid probate since it allows the owner of the trust to transfer their assets to their beneficiaries without going through probate court. A special needs trust is a trust that is specifically used to provide supplemental support and assistance for people with disabilities. This type of trust allows them to receive additional benefits, such as government services, to help cover the costs of day-to-day living expenses. Unlike a revocable living trust, which is created and managed by the owner of the trust while they’re still living, a special needs trust is usually created and managed by a court-appointed trustee. In Rhode Island, disability planning law is designed to help individuals with disabilities receive the health care and financial security they need to maintain a quality of life. A revocable living trust and a special needs trust are both common tools used to protect an individual’s assets and ensure their long-term financial security. While both trusts have similar goals, it’s important to remember that a revocable living trust is designed for the individual’s benefit, while a special needs trust is designed to benefit the individual with disabilities.

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

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