What is a special needs trust?

A special needs trust is a type of trust used to provide for a person with special needs in North Carolina. It is a trust created to provide funds to the beneficiary for supplemental needs in order to supplement their government assistance. The trust is set up by a parent, guardian, or court in order to preserve the beneficiary’s eligibility for government-based assistance such as Social Security, food stamps, or Medicaid. The funds in the trust can be used for any necessary items not covered by the government assistance, such as medical supplies, transportation, and recreational activities. It is important to note that special needs trusts are created with a very specific purpose in mind and the funds are not able to be withdrawn and used for anything other than what the trust creator intended for the beneficiary. This is because any funds withdrawn from the trust for any other purpose could make the beneficiary ineligible for the government assistance they are receiving. The trust is also established in such a way to protect the beneficiary’s government benefits and to provide for the beneficiary’s future needs while providing a source of income they can enjoy now. Special needs trusts are a great way to provide for the future of someone with special needs in North Carolina.

Related FAQs

How do I transfer real estate into a trust?
What is a trust modification?
What is a trustee?
What is a trust protector?
What is an irrevocable trust?
What is a testamentary trust?
What is a discretionary trust?
What is a revocable trust?
What is a business succession plan?
What is a special needs trust?

What is a special needs trust?

Related FAQs

Related Blog Posts