What is a protected trust?

A protected trust is a legal financial tool available to people with disabilities in the state of Texas. It is designed to provide protected savings for individuals with disabilities or special needs, while still allowing them to maintain their eligibility for certain public benefit programs. A protected trust is created with the assets of the disabled individual, such as money or property, and is managed by a trustee. The trustee can use the assets of the trust to pay for medical care, educational expenses, and other necessary expenses for the beneficiary. The trust can also be structured so that excess funds are saved for the beneficiary’s future. In Texas, a protected trust must comply with the applicable disability planning laws. These laws help to ensure that the trust is managed responsibly and in the best interest of the beneficiary. The trust must also be established and managed in such a way that it does not affect the beneficiary’s eligibility for public benefits, such as Social Security or Medicaid. The purpose of a protected trust is to provide financial security and independence for individuals with disabilities or special needs. It is an important planning tool for families and can provide peace of mind knowing that their loved one’s future is secure.

Related FAQs

What is a trusted advisor?
What is a long-term disability insurance policy?
What is a charitable trust?
What is a disability attorney?
What are the tax implications of disability benefits?
What is a disability review?
What is a living will?
What is the Social Security Blue Book?
What is Social Security Disability Insurance (SSDI)?
What is a durable power of attorney?

What is a protected trust?

Related FAQs

Related Blog Posts