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

A revocable living trust and a special needs trust are similar in some ways but also have some major differences. Both are legal documents that allow you to control the distribution of your assets after you die by designating who will receive them. They are both designed to provide for the financial security of a beneficiary after the grantor, or creator, of the trust has died. The major difference between a revocable living trust and a special needs trust is that the former is used for regular financial planning, whereas the latter is used for disability planning. A revocable living trust allows a grantor to change or revoke the trust terms at any time while they are alive. This means that the grantor can change who will receive their assets, when they will receive them, and how much they will receive. A special needs trust, on the other hand, is designed specifically for individuals with disabilities. It allows them to receive funds without losing eligibility for government programs such as Social Security and Medicaid. The trust also protects the funds from creditors, so the beneficiary will not have to use the funds to pay for any debts. In summary, a revocable living trust is a common financial planning tool that can be changed or revoked while the grantor is still alive. A special needs trust is specifically designed to provide for the financial needs of someone with a disability without compromising their government program eligibility.

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

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