What is a special needs trust?

A special needs trust is a trust created to provide supplemental support and care for a disabled individual. It allows individuals with disabilities to be financially secure and remain eligible for government benefits such as Supplemental Security Income (SSI) and Medicaid. In Montana, special needs trusts are typically considered to be irrevocable trusts, meaning that they cannot be changed or revoked once they have been created. These trusts are typically established by a parent, grandparent, or guardian of the disabled individual. These trusts are allowed to manage the funds in order to provide additional financial and medical care for the disabled person. For example, the trust may purchase items that are necessary for the health, safety, and welfare of the disabled individual. These items can include medical equipment, home modifications, and transportation expenses. In addition, the trust may provide the funds for other forms of supplemental support, such as recreational activities, educational opportunities, and other social services. The trusts are managed by trustees who are responsible for making sure that the trust is being handled in accordance with the law and the special needs of the disabled individual. The trustee must ensure that the trust funds are used only for the purposes specified and that proper accounting is kept. In Montana, there are certain regulations that must be followed when creating a special needs trust, so it is important to consult a qualified attorney when setting one up. Doing so can help ensure that the trust meets all the legal requirements and that the rights of the disabled individual are adequately protected.

Related FAQs

How do I transfer real estate into a trust?
How can I create a trust?
What is a trust company?
What is a trust agreement?
What is a healthcare power of attorney?
How do I appoint a guardian for a minor in an estate plan?
What is an inheritance tax?
What is a trust modification?
What are the tax implications of establishing a trust?
What is a generation-skipping trust?

What is a special needs trust?

Related FAQs

Related Blog Posts