What is a protected trust?

A protected trust is a special legal arrangement that is used in Rhode Island to help people with a disability maintain their independence. It is designed to protect a person’s assets so they can use them in the future, while also ensuring that the person has access to necessary resources like food, shelter, and medical care. A protected trust is set up with a legal fiduciary, such as a lawyer or bank, who is responsible for managing the assets of the trust and ensuring that all rules and regulations are followed. This fiduciary is responsible for making sure that the trust is used in the best interest of the person with a disability by investing the money wisely and providing the necessary resources for their well-being. The trust also includes a spending plan, which documents how the money will be used to benefit the person with a disability. This plan is reviewed regularly by the fiduciary to make sure that it is up-to-date and that all legal requirements are met. A protected trust is an important tool in the legal planning for people with a disability. In Rhode Island, the Disability Planning Law outlines the legal requirements for setting up a protected trust. By using this tool, a person with a disability can maintain their independence even if they cannot manage their own finances.

Related FAQs

What is a disability waiver?
What are the legal requirements to qualify for disability benefits?
What is a Letter of Intent?
What is a revocable living trust?
When should an Advanced Medical Directive be used?
What is a life care plan?
What are SSA's guidelines for evaluating disability claims?
What is a special needs trust?
What is the definition of a disability?
What is a Guardianship?

What is a protected trust?

Related FAQs

Related Blog Posts