What is a self-settled trust?
A self-settled trust is a type of trust in North Dakota that allows people with disabilities to maintain their eligibility for certain benefits. This type of trust is also known as a Special Needs Trust or a Supplemental Needs Trust. In a self-settled trust, a settlor, usually the person with the disability, establishes the trust and is also the beneficiary of the trust. This trust is funded with assets of the person with the disability and will not count against their eligibility for government benefits. These funds are then used to supplement the benefits the person with the disability receives from the government. Under North Dakota disability planning laws, a self-settled trust must include specific language to ensure that it is not considered an asset of the beneficiary. This language is important in protecting the beneficiary’s eligibility for government benefits. It also reduces the risk of the trust funds being used for anything other than the specific purposes it was created. The settlor may appoint a trustee to manage and oversee the trust. This ensures that the trust is properly managed and that the funds are used for the intended purpose. The trustee must be a person or a financial institution. Self-settled trusts are an important tool in disability planning and can help individuals with disabilities maximize their eligibility for government benefits. However, it is important to understand the rules and regulations in North Dakota in order to make sure the trust is set up properly.
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