What is a special needs trust?

A special needs trust is a legal tool that provides financial assistance for individuals with disabilities. This type of trust allows a person to receive assets and income without losing essential government benefits. In Michigan, special needs trusts are designed to supplement government benefits such as Medicaid, Supplemental Security Income (SSI), and Social Security Disability Insurance (SSDI). The trust can be used to pay for medical care, housing, education, and other items that are not covered by those benefits. The trust is designed to ensure that the beneficiary does not lose any of their government benefits due to income or assets in the trust. The trust is typically funded with donations, gifts, or money from court settlements or personal injury awards. The trust is managed by the trustee, who is responsible for ensuring the beneficiary receives the funds and services necessary to meet their needs. The trust can also provide long-term protection for the beneficiary, which ensures that any remaining assets are preserved for future needs. Special needs trusts are also beneficial for individuals with disabilities because they can provide financial protection in case of an unexpected event in the future. In Michigan, special needs trusts must be established according to state laws, and the trustee must be properly appointed and oversee the trust appropriately. Additionally, the trust must include provisions for the payment of taxes and legal fees associated with its administration.

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