What is a special needs trust and who is eligible to set one up?

A special needs trust is a legal document that allows an individual with disabilities to receive and use assets for the benefit of their needs, while still maintaining eligibility for government benefits such as Medicare and Social Security. In North Carolina, special needs trusts can be created by a parent, grandparent, legal guardian, or court for a disabled person who is either a minor or an adult. A special needs trust is designed to provide for a disabled individual’s needs without jeopardizing their eligibility for important government benefits. The trust must be managed and distributed by a trustee who is legally obligated to use the funds for the benefit of the beneficiary. The trustee is responsible for ensuring that all funds are spent in accordance with the terms of the trust, that the funds are used for the beneficiaries’ health, safety, education, and general well-being. In North Carolina, the trust must be specifically created by the settlor, or the person who creates the trust. Under the North Carolina Special Needs Trust Act, the settlor is responsible for providing the trustee with the instructions to create the trust, including who the beneficiary is and how the funds should be used. The settlor must also provide the trustee with clear instructions for the trustee to use the funds for the specific needs of the disabled individual. Special needs trusts can provide financial security for disabled individuals and their families by ensuring they have access to necessary resources while maintaining eligibility for government benefits. It is important to consult a qualified attorney to help determine the best way to create and manage the trust in accordance with North Carolina law.

Related FAQs

What is the difference between a guardianship and a power of attorney?
What is Elder Law?
What is a health care power of attorney?
What is an elder law advocate?
What is a joint trust?
What types of issues does Elder Law cover?
How can I ensure my wishes are carried out after I am no longer able?
What is the difference between Medicare and Medicaid?
What are some common Elder Law topics?
How can I ensure that my elderly parent’s wishes are respected?

What is a special needs trust and who is eligible to set one up?

Related FAQs

Related Blog Posts