What is a special needs trust?

A special needs trust is a type of trust that is created to provide for an individual with a disability, while protecting their eligibility for governmental benefits. In the state of California, special needs trusts are governed by disability planning law, which means that the trust must be established in accordance with specific rules and regulations. The trust is typically established by a family member, friend, or government agency, and is designed to provide for the care, comfort, medical, and recreational needs of the individual with a disability. Funds placed in the trust are not considered to be the individual’s assets and therefore, do not affect their eligibility for government benefits. The funds placed in the trust are typically used to pay for items such as doctor and rehabilitation visits, medical supplies and equipment, personal care items, and recreational activities. The money can also be used to pay for special training, education, or transportation needs. In addition, the trust can be used to provide for the individual’s future needs, such as supplementing their government benefits for the duration of their lifetime. The trust typically does not provide for basic living expenses, such as food and rent, as these are typically provided by governmental programs. In California, special needs trusts must be established by an attorney or other qualified individual. The individual responsible for creating the trust must be knowledgeable of disability planning law, so that the trust is properly managed and adheres to the state’s requirements.

Related FAQs

What documents do I need to apply for disability benefits?
What can a Durable Power of Attorney do?
What is Disability Planning Law?
What is a health care proxy?
What are the legal requirements to qualify for disability benefits?
What is a testamentary trust?
How can I avoid probate?
What is a Medicaid waiver program?
What is the difference between a revocable living trust and a special needs trust?
What is a durable power of attorney?

What is a special needs trust?

Related FAQs

Related Blog Posts