A Special Needs Trust is a legal trust set up to provide for the care, maintenance, and well-being of a person with special needs. The trust can only be used for the benefit of the individual with special needs, and it makes sure that the individual does not become dependent on public benefits or services. The trust allows for the funds to be used to help pay for medical care, therapy, transportation, recreation, housing, and other expenses that the individual might need.
What Makes a Special Needs Trust Different From Other Trusts?
A Special Needs Trust is different from other types of trusts in that it must be closely monitored and administered in accordance with state and federal laws in order to ensure that the funds are only used for the benefit of the individual with special needs. The trust can also be complicated and may require the assistance of a qualified attorney. Additionally, the funds must be managed carefully so that the individual with special needs does not become disqualified from receiving public benefits or services.
Examples of Special Needs Trusts
There are various types of Special Needs Trusts that are used depending on the individual’s situation. Some examples include a Third-Party Special Needs Trust, a Pooled Special Needs Trust, or an Inheritance Trust. A Third-Party Special Needs Trust can be used when someone other than the individual with special needs has assets that can be put into trust for them. A Pooled Special Needs Trust is typically set up by a non-profit organization and it is managed and administered by that organization. An Inheritance Trust is typically used when an individual with special needs inherits money or property from a loved one.
Conclusion
Overall, a Special Needs Trust is a legal trust that is used to provide for the care, maintenance, and well-being of a person with special needs. This type of trust is closely monitored in order to ensure that the funds are being used for the benefit of the individual with special needs. Examples of Special Needs Trusts include a Third-Party Special Needs Trust, a Pooled Special Needs Trust, or an Inheritance Trust. It is important to consult with a qualified attorney when setting up a Special Needs Trust to make sure that the trust is properly structured and managed.