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

A special needs trust is a type of trust that is used to provide for the care of individuals with disabilities without endangering their eligibility for public benefits. In Delaware, special needs trusts are established to provide supplementary financial assistance for individuals with disabilities that extends beyond what public benefits are able to provide. A special needs trust allows parents, guardians, or the disabled person to set aside money or property that can be used for the disabled person’s benefit. The trust is established by an individual, family, or court of law, and the trust fund can be created with a one-time payment or contributions over time. The trust is then managed by a trustee who is responsible for ensuring that funds are used only for the disabled person’s benefit. Crucially, the funds in the trust are exempt from government benefits calculations, which ensures the disabled person maintains their eligibility for Medicaid, Supplemental Security Income, and other public benefits. The money or assets in the trust can be used to pay for items and services not covered by public benefits. This may include medical treatments, special equipment, transportation, private education, or recreational activities. By providing supplemental resources for the disabled person, special needs trusts can improve their quality of life in meaningful ways. In Delaware, special needs trusts provide a secure and flexible way to ensure a disabled person is taken care of financially in the long term.

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

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