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

Should I name my estate as the beneficiary of my life insurance policy?
What is a trust protector and how does it work?
What steps should I take to make sure my estate plan is properly executed?
What happens to my assets if I die without a will?
How do I make sure my digital assets are taken care of after my death?
What is a revocable living trust?
What are the different types of trusts and how do they work?
What is a letter of intent and how does it work?
What legal documents will I need to establish my estate plan?
What is a beneficiary designation and how does it work?

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

Related FAQs

Related Blog Posts