What is a special needs trust?

A special needs trust (SNT) is a trust created to supplement, rather than replace, existing government benefits for individuals with special needs. A SNT is a type of trust that is set up to provide financial assistance or other benefits to a person with disabilities, without adversely affecting their eligibility for government assistance programs such as Social Security or Medicaid. The trust often provides for the beneficiary’s health care and other special needs that the government cannot cover. In Texas, SNTs are generally established to supplement, rather than replace, government benefits to ensure that the beneficiary’s quality of life is not compromised. A SNT is normally created with a third-party, such as a family member, guardian, or attorney, serving as the trustee. When creating the trust, the settlor (the person who creates the trust) must be sure to name a suitable trustee who is suitable to handle the duties of the trust. In Texas, the settlor may also choose to appoint a trust protector. The trust protector is responsible for monitoring the trust, ensuring that the trust’s terms are followed, and making decisions on behalf of the beneficiary in the event that the beneficiary is unable to act. Special needs trusts are an important tool for families in Texas who are looking after members with disabilities. The trust allows for the protection of assets while ensuring that the beneficiary is cared for and maintains their eligibility for government assistance. By creating a special needs trust, families can feel comfortable knowing that their loved one is taken care of, even if the settlor is no longer around to provide direct assistance.

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