What is a special needs trust?

A special needs trust is a type of trust specifically designed to provide financial support to individuals with disabilities living in South Carolina. This trust is designed to supplement, but not replace, governmental aid. A special needs trust allows people with disabilities to receive funds from trusts, gifts, and other assets without affecting their eligibility for governmental benefits such as Supplemental Security Income (SSI) and Medicaid. The funds from the trust can be used to buy items and services for the benefit of the individual. This can include medical devices, education, personal care, transportation, social outings, and other needs that the individual may have. While the trust is funded for the benefit of the individual, there are limits to what the trust can cover. For example, the funds cannot be used to purchase food, housing, or clothing. The special needs trust is managed by a trustee who is responsible for investing and distributing the funds. The trustee is typically a family member, a friend, or an organization such as a bank or trust company. The trustee is also responsible for keeping records and filing annual reports on the trust’s activity. Special needs trusts provide an important source of financial support for people with disabilities living in South Carolina. They ensure that individuals with disabilities maintain their eligibility for governmental aid while also providing additional financial resources to help meet their needs.

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