What is a special needs trust, and when is it used?

A special needs trust is a legal arrangement set up to provide for the financial needs of individuals with disabilities. The trust is designed to manage assets and funds for the benefit of the disabled individual, while also ensuring that they remain eligible for government benefits such as Medicaid, Supplemental Security Income (SSI), and housing assistance.

When is a special needs trust commonly used?

Disability Planning: Special needs trusts are commonly used as part of disability planning to ensure that individuals with disabilities have the necessary financial resources for their care and support.

Estate Planning: Families often set up special needs trusts as part of their estate planning to provide for loved ones with disabilities after they pass away.

Financial Stability: Special needs trusts help ensure long-term financial stability for disabled individuals by managing and preserving their assets for future expenses.

Preserving Government Benefits: By using a special needs trust, individuals can maintain their eligibility for crucial government benefits while still having access to additional financial resources.

Overall, special needs trusts play a vital role in providing financial assistance and support to individuals with disabilities, while also protecting their access to essential government benefits.