What is a special needs trust?

A special needs trust (SNT) is a type of trust that provides financial assistance to individuals with disabilities in North Carolina. An SNT is a special type of trust set up for the benefit of a person with special needs. The trust is funded with money, assets, or both that are donated by family members, friends, or other third parties. The money or assets in the trust are used to pay for the special needs of the beneficiary, such as medical care, housing, education, and other necessities. An SNT is designed to protect the beneficiary from losing access to government benefits, such as Medicare and Social Security, because it is structured so that the money in the trust is not considered part of the beneficiary’s assets. This means that the funds can be used for the specific purpose of benefiting the person with special needs, without affecting their eligibility for government benefits. In North Carolina, SNTs must be set up by a legal representative or guardian who is appointed by state or local courts. The legal representative or guardian is responsible for making sure that the trust is managed and operated in accordance with state law. Furthermore, these trusts must be approved by the court before they become active. SNTs are an important part of disability planning law in North Carolina, as they allow individuals with special needs to receive financial support without losing access to needed government benefits.

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What is a special needs trust?

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