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

A special needs trust is an estate planning tool used in Washington to provide financial support for individuals with disabilities. This type of trust has specific rules in terms of how it’s established and managed, allowing it to maintain the individual’s eligibility for government benefits while providing money to cover costs not covered by those benefits. A special needs trust is usually funded by a family member—usually someone close to the individual with disabilities–through a gift, inheritance, settlement, or other sources. It can also be funded with government benefits such as Social Security or Medicaid. The money in the special needs trust is managed by a trustee—a person designated to manage the trust–and is used for specific items related to the individual’s care, such as medical costs and educational expenses. The trustee is responsible for making sure the money is used in a way that does not jeopardize any government benefits the individual may receive. The trustee can also use the trust to provide for recreation, entertainment, and other quality-of-life expenses. These items can provide a great deal of comfort to the individual with disabilities, and they can also help to build important life skills, such as money management and decision-making. A special needs trust can be a powerful estate planning tool for families with a member who has disabilities. It can help to ensure that the individual is provided for in a way that does not jeopardize their eligibility for government assistance, while providing them with the resources and opportunities to enjoy a better quality of life.

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

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