What is a special needs trust?

A special needs trust is an estate planning tool often used in Minnesota to ensure that an individual with a disability or special needs is able to receive benefits in a way that won’t disqualify them from programs like Medicaid and Supplemental Security Income (SSI). A special needs trust is a type of trust where a third party, such as a relative or a court-appointed trustee, is given the responsibility of managing assets set aside for the beneficiary. The trustee is then responsible for using the money in the trust for the special needs of the beneficiary, such as medical care, living expenses, and educational costs. The primary goal of a special needs trust is to provide for the beneficiary’s needs without disturbing their eligibility for government benefits. Funds held in the trust are generally considered separate from the beneficiary’s resources, so any money distributed from the trust to the beneficiary is not counted as income when determining eligibility or the amount of benefits they may receive. A special needs trust should be tailored to the individual’s specific needs, so it’s important to contact an experienced trusts and estates attorney in Minnesota. An attorney can help you understand the different types of trusts, and walk you through the process of setting up the trust to make sure that it meets all of the legal requirements.

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What is a special needs trust?

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