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

A special needs trust is an important part of estate planning in Massachusetts. It allows an individual with special needs to receive a bequest, inheritance, or other funds from another person without affecting their eligibility for government benefits. A special needs trust is created under the supervision of a trustee. The trustee is responsible for managing and protecting the funds in the trust. If the funds are not carefully monitored, it could affect the benefits the individual receives from state or federal programs. The funds that are placed in the trust can be used to pay for medical expenses, therapy, education, housing, and other needs that the individual might have. The trust can also provide for the individual’s quality of life, such as leisure activities and entertainment. The trustee can also provide for the individual’s long-term care, such as providing for family members to help provide care, or purchasing an annuity to provide a regular income stream. Any funds that are not directly used for the individual’s benefit are usually invested in order to provide a source of income in the future. When properly created and managed, a special needs trust can provide for the care and quality of life of an individual with special needs while allowing them to remain eligible for government benefits.

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

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