What is a special needs trust?

A special needs trust is an important tool in Trusts and Estates Law in Pennsylvania. It is a legal mechanism that enables individuals with disabilities to preserve public assistance benefits while providing additional funds to help pay for expenses related to their disabilities. The trust can be set up in a variety of ways. It can be established by the individual, a family member or a court. It can also be established by government agencies such as the Social Security Administration or Medicaid. A special needs trust holds assets and pays out income, which is used to pay for items that are not covered by government benefits. These may include medical and dental care, assistive technology, therapy, education, and other related expenses. The trust is managed by a trustee who is responsible for making sure the trust income is used for the specified purpose. The trustee must follow the terms of the trust document. It is important to establish a plan for handling taxes, asset management, and other financial matters associated with the trust. A special needs trust is designed to help individuals with disabilities improve their quality of life without compromising their access to vital public benefits. This makes it an invaluable tool in Trusts and Estates Law in Pennsylvania.

Related FAQs

What is a testamentary trust?
What is a discretionary trust?
What is a will?
What is an irrevocable life insurance trust (ILIT)?
What is a special needs trust?
What is a trustee’s duties?
How do I transfer assets into a trust?
What is estate tax?
What is a trust fund agreement?
What is a special needs trust?

What is a special needs trust?

Related FAQs

Related Blog Posts