What is a special needs trust and how does it work?

A special needs trust is an estate planning document used to protect the assets of a person with a disability in Arizona. It provides a way for family members, friends, or other persons to leave money or other assets to the person with the disability without compromising their eligibility for programs such as Medicaid or Social Security. The trust allows the person with the disability to remain eligible for government benefits and receive the financial support without losing those benefits. In order to set up a special needs trust in Arizona, the first step is to choose a trustee who has the legal authority to manage the trust and handle the trust funds. The trust should specify the purpose of the trust and the activities that the trustee can and cannot perform to ensure that the trust’s purpose is fulfilled. The trust should also name the beneficiary, which is the person with the disability, and spell out how the trustee should manage the funds. The trust should also state that the funds should only be used for the benefit of the beneficiary and should never be used to replace government benefits. When the beneficiary dies, the trust should provide for the distribution of the remaining funds, usually to a charity or other designated person in Arizona. In summary, a special needs trust is a legal document used to protect the assets of a person with a disability in Arizona by allowing family members, friends, or other persons to provide financial support without compromising the beneficiary’s eligibility for government benefits.

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What is a special needs trust and how does it work?

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