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

A special needs trust (SNT) is a type of trust that provides financial assistance to those with disabilities or special needs. In South Carolina, a special needs trust can be used to provide financial assistance for items and services not covered by public benefits, such as Medicaid or Social Security Disability Insurance (SSDI). In South Carolina, any individual who has or will have a disability can set up a special needs trust. To be eligible, the individual must be under the age of 65 and have a disability that meets the federal standard for “disability” as defined in the Social Security Act. Additionally, these trusts must be set up and managed by a person called a “trustee” who must be appointed by the court. The trust funds can be used for items such as medical expenses, personal care services, living expenses, recreational activities, and other special needs not provided by government programs. Additionally, the funds can also be used to supplement the beneficiary’s public benefits so that they can maintain or increase their quality of life. Lastly, the funds in a special needs trust must be used solely for the benefit of the beneficiary. If the funds are used for any reason other than what is intended, they can be recovered by the South Carolina Office of Disabilities and Special Needs.

Related FAQs

What is a community spouse resource allowance?
What is a health care directive?
What is a Medicaid waiver program?
What is an elder law advocate?
What are the benefits of setting up a trust?
What is a qualified income trust (QIT)?
What is probate?
How do I obtain durable power of attorney?
What are the advantages of enrolling in a long-term care insurance policy?
What is a power of attorney?

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

Related FAQs

Related Blog Posts