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 trust that can be set up for a person who has a disability. The main difference between the two is that a revocable living trust allows an individual to set aside assets that will be available for their use during their lifetime. These assets will then pass to the designated beneficiaries upon their death. On the other hand, a special needs trust is designed to protect the public benefits of a disabled person while still allowing the disabled person to benefit from the funds set aside in the trust. In South Carolina, a special needs trust must be established by a parent, grandparent, legal guardian, or court-appointed conservator for the benefit of the disabled person. The funds placed in the trust can be used to provide items and services that would not be covered by public benefits, such as computers, travel, medical or dental bills, or recreation. A revocable living trust, however, is not required to meet the same standard of care as a special needs trust and does not guarantee that public benefits will not be affected.

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

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