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

A special needs trust is a legal instrument commonly used in Elder Law in Texas. It is a trust designed to hold assets for the benefit of an individual with a disability, allowing them to receive care and support without losing out on government benefits. The trust can provide for the disabled individual’s needs without compromising their eligibility for certain government benefits. Special needs trusts must be created by someone who has the legal authority to do so. This can include the disabled person themselves, their parents, grandparents, legal guardians, conservators, and other individuals who have a legally recognized relationship with the disabled individual. The money placed in the trust can be used to pay for things like medical treatment, specialized care, food, clothing, and other costs of living that are not covered by government benefits. The trust must be specifically tailored to the needs of the individual and can include restrictions or other stipulations regarding how and when the money is used. A special needs trust can also avoid creditors and other claimants from taking assets that are intended to provide care for the disabled individual.

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

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