What is a protected trust?

A protected trust is a type of trust that is used to provide protection for disabled individuals in the state of Virginia. This type of trust is created to protect the beneficiary’s eligibility for public benefits, such as Supplemental Security Income (SSI) and Medicaid. The trust can hold assets, such as money or property, for the benefit of the disabled individual while still ensuring that they will maintain their eligibility for public benefits. In Virginia, the law for setting up a protected trust is outlined by the Virginia Protected Trust Act. This law specifies the requirements for setting up and administering a protected trust as well as defines the rights of the beneficiaries. The law requires that the trust be irrevocable and it must be managed in a way that will not interfere with the individual’s eligibility for public benefits. The Virginia Protected Trust Act also outlines the duties of the trustee, who is responsible for managing the trust’s assets and making sure that the trust meets all the legal requirements. The trustee is responsible for ensuring that the assets are used only for the benefit of the disabled person, as specified in the trust document. The protected trust is an important tool in disability planning law, providing disabled individuals with the protection they need while still allowing them to maintain their eligibility for public benefits. It is an important tool that helps provide financial security for disabled individuals in Virginia.

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