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

How do I plan for disability or incapacity?
What is a health care directive and how does it work?
What is an inheritance trust?
What rights do my heirs have to my estate?
What happens if I don't have an estate plan?
What is a letter of intent and how does it work?
How do I make sure my digital assets are taken care of after my death?
What is a testamentary trust?
How can I ensure that my beneficiaries receive their inheritance quickly and efficiently?
Should I hire a lawyer to help with my estate planning?

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

Related FAQs

Related Blog Posts