What is a special needs trust?

A special needs trust (SNT) is a type of trust set up to provide financial support for a person who has special needs. The purpose of a special needs trust is to ensure the person with special needs is taken care of in the future and that their needs are met without interfering with any public benefits they may be receiving. A special needs trust is typically established by a family member or friend of the person with special needs. This enables the person with special needs to access assets held in the trust without having to direct manage those assets themselves. Trust assets may be used to pay for goods and services that are not provided by public benefits programs. Examples of potential uses include items such as education, medical care, therapy, recreation, and other special needs. In the state of Colorado, special needs trusts are typically established by a court order. The court order authorizes the trust and outlines the specific details of how it should be managed. The order also ensures that the trust is set up correctly and meets all of the legal requirements for special needs trusts in Colorado. Special needs trusts in Colorado are managed by a trustee appointed by the court. The trustee is responsible for managing the trust assets, but the individual with special needs remains the beneficiary of the trust. The trustee is responsible for making sure that trust assets are used in accordance with the terms of the trust.

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