What is a special needs trust?

A special needs trust is a type of trust set up to provide for a disabled or incapacitated beneficiary without jeopardizing their eligibility for government benefits like SSI and Medicaid. This type of trust is different from other trusts in that it is designed with the specific needs of the beneficiary in mind. The trust must be carefully drafted to make sure that the beneficiary does not receive any benefits that might disqualify them from receiving government assistance. In Florida, a special needs trust is usually established by a parent, guardian, or family member for the benefit of a disabled beneficiary. The trust usually has two types of funds, corpus funds and supplemental funds. The corpus funds are the assets that are placed into the trust and are managed by a trustee. The supplemental funds are used to provide for the beneficiary’s needs that are not covered by government benefits. The trust can also pay for medical expenses, educational expenses, housing costs, transportation costs, and leisure activities for the beneficiary. The trust documents must also be drafted carefully to ensure that the trust meets the requirements of federal and state law, as well as the requirements of the disabled beneficiary. A special needs trust can be a great way to provide for the needs of a disabled beneficiary without jeopardizing their government benefits.

Related FAQs

What is the role of an attorney in an estate plan?
How do I transfer assets into a trust?
What is a trust fund?
What is a trust deed?
Can I revoke a trust?
What is a revocable trust amendment?
What is a trust modification?
What is a trust distribution?
Can I change the terms of a trust?
What is a power of attorney?

What is a special needs trust?

Related FAQs

Related Blog Posts