What is a special needs trust?

A special needs trust (SNT) is a type of trust in Texas that is designed to provide financial support for individuals with special needs. This type of trust allows individuals with disabilities or special needs to receive money without the funds being considered as their own. This means that individuals can receive funds without losing eligibility for government programs. The trust is usually formed by a parent, guardian, or court. It is funded with both public and private money. Assets in the trust are managed by a trustee, who is appointed by the grantor. The trustee has a fiduciary duty to use the assets of the trust for the benefit of the individual with special needs. The trust can be used to pay for medical and educational expenses, as well as for entertainment and other quality of life expenses. These trusts can also be used to provide funds for the individual when they reach the age of majority, and for future generations. The trust also provides protection from creditors, since the funds in the trust cannot be accessed by creditors to satisfy debts. A special needs trust also allows for flexibility in how the funds can be used for the beneficiary. This is incredibly important for those individuals with special needs, as it helps ensure that they have the assistance they need.

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