What is a special needs trust?

A special needs trust is a type of trust created to provide financial assistance for individuals with disabilities or special needs. These trusts are available in California and are used to protect financial assets for individuals who may be unable to care for themselves due to their disability. The funds from a special needs trust can be used for a variety of expenses such as medical care, housing, education, and other related expenses. The trust is set up in such a way that the assets remain in the trust and are managed by a trustee. The trustee has the legal authority to use the funds from the trust to pay for the beneficiary’s expenses and provide for their needs. The funds are typically not counted as part of the beneficiary’s assets when determining their eligibility for government assistance programs such as Supplemental Security Income (SSI) and Medicaid. Special needs trusts can be established by friends or family of the individual with a disability, or they may be established through court proceedings. These trusts can be funded with money or other assets such as real estate, stocks, bonds, and life insurance policies. The funds are managed by the trustee, who has the responsibility to make sure the funds are being used according to the terms of the trust. The benefits of a special needs trust are numerous, but one of the most important is that it allows individuals with special needs to receive the care and amenities they need without jeopardizing their eligibility for government services. This allows individuals to enjoy a better quality of life and meet their needs without worrying about their financial situation.

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