What is a special needs trust?

A special needs trust is a legal arrangement that can help protect assets and provide financial security for a person with a disability. This trust is specifically designed to provide money for the care of the person with the disability without affecting their entitlement to government benefits. In South Carolina, special needs trusts, also known as supplemental needs trusts, are typically established either through a parent or guardian of the disabled person or by the disabled person if they are able to manage their own finances. A special needs trust is an effective way to ensure funds are available to cover needs that are not met through government benefits. The special needs trust is set up by a trustee, who is responsible for managing and distributing the funds. The trust document outlines who can receive the funds, which may include a guardian, parent, or trusted friend. The trust also specifies how the funds can be used, such as for medical care, living expenses, or recreational activities. Essentially, the trust allows the disabled person to receive the benefits of the funds without compromising government or other benefits they may be receiving. It is important that funds are managed properly to ensure the trust’s main purpose is fulfilled, which is to provide a secure financial future for the disabled individual.

Related FAQs

How do I transfer real estate into a trust?
What is a tax-free trust?
How do I probate an estate?
What is a living will?
What is a guardianship?
How can I create a trust?
What is a trust amendment?
What are the elements of a trust?
What is a living trust?
How do I appoint a guardian for a minor in an estate plan?

What is a special needs trust?

Related FAQs

Related Blog Posts