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

A special needs trust is a trust that is established in order to provide funds for a disabled person without affecting their eligibility for government benefits, such as Supplemental Security Income (SSI) and Medicaid. In Virginia, a special needs trust can be set up by a parent, grandparent, legal guardian, or another relative or friend of someone with disabilities. In a special needs trust, the trustor (person making the trust) puts money or property into the trust, which is managed by a trustee. The trustee is designated by the trustor and is responsible for managing the trust assets and distributing funds for the benefit of the beneficiary (person receiving the funds). The trustor can decide how the funds will be used and which expenses will be covered, such as medical care, housing, education, transportation, and recreational activities. The beneficiary typically does not have direct access to the trust funds, and the trusts are often set up so that any assets or funds remaining in the trust upon the beneficiary’s death will go to designated family members or charities. This helps ensure that the disabled person can continue to receive government benefits while still having access to funds from the trust. In Virginia, special needs trusts are an important part of estate planning for those with disabilities. They provide access to funds while ensuring that their eligibility for government benefits is not affected.

Related FAQs

What is a revocable living trust?
What estate planning documents must be witnessed?
How can I ensure that my beneficiaries receive their inheritance quickly and efficiently?
What is an estate plan disclosure statement?
What is a disclaimer and how does it work?
Should I consider creating a trust for my pet?
What are the benefits of establishing a family limited partnership?
How can I reduce the estate tax burden?
What legal documents will I need to establish my estate plan?
How should I choose an executor for my will?

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

Related FAQs

Related Blog Posts