What is a special needs trust?

A Special Needs Trust (SNT) is a trust that is specifically designed to provide for the needs of a person with disabilities without interfering with their governmental benefits. In Virginia, a SNT allows a person with disabilities to manage his or her own funds set aside for future needs, while still maintaining their eligibility for government-funded programs, such as Medicaid or Supplemental Security Income (SSI). It is important to note that a SNT must be created and funded with someone else’s money, and not by the individual with disabilities. A SNT is managed by a Trustee, who is responsible for ensuring that the funds in the Trust are used for the person’s benefit and specifically for the purpose of providing for the his or her special needs. These needs may include medical care, therapeutic treatment, housing, educational costs, and other items necessary to improve the quality of life of the person with special needs. The Trustee is not allowed to use the Trust funds for any other purpose. SNTs are extremely beneficial as they allow individuals with disabilities to lead more independent lives. They provide the security of knowing that there are funds available for their future needs, while still maintaining their eligibility for government programs. Furthermore, SNTs allow individuals to leave a financial legacy for their loved ones, regardless of whether or not they are eligible for governmental support.

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