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

A special needs trust is a type of estate planning tool used in Utah to protect natural assets for individuals with disabilities. It helps to preserve eligibility for government benefits such as SSI, Medicaid, and other programs that require the individual to have assets below a certain limit. The trust is typically established using funds from another individual or organization, such as family members, friends, or charities. This third-party funding helps to ensure that the person with special needs will not lose access to important government resources. The money from the trust is used to pay for items not covered by government services, including medical costs, travel, and recreational activities. The trust is managed by a trustee, usually someone that the person with special needs trusts. The trustee is responsible for managing the trust’s assets and making decisions on how the money is spent. Funds can only be used for the benefit of the person and cannot be used for the benefit of the trustee. Additionally, the trust must have certain provisions to ensure that assets will not be spent down and the beneficiary will remain eligible for government benefits. A special needs trust can be set up during the person’s lifetime or through a will. Estate planning attorneys can help with creating this type of trust.

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

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