Special Needs Trust

What is a special needs trust?

A special needs trust (SNT) is a trust that is usually used to set aside assets for the benefit of a child or adult living with a disability. Most often, parents of children with special needs will consider a special needs trust in a will to help make sure that their child’s welfare and health are met when the parents pass away. A special needs trust can be used to pay for the non-essential items for a disabled person. A special needs trust is usually set-up by you for the benefit of your child or adult that is living with a disability. A special needs trust is managed by a trustee, who will have complete control over how the money is spent. The money in a special needs trust cannot be used to pay for things that Social Security or Medicaid will cover. When a special needs trust is properly drafted and executed, it may not be able to be accessed by any creditors of the beneficiary. Typically, a special needs trust is only allowed to be accessed by the designated trustee.

What are the benefits to a special needs trust?

One benefit of a special needs trust (SNT) is that this trust may keep your family member eligible for any government programs or assistance that they currently receiving, such as Social Security disability, or Medicaid and will further provide services and care beyond what the government is providing. The assets that are used to fund a special needs trust funds cannot be used for anything else other than the care of the family member with the disability. Another benefit of a special needs trust is that the money is protected from creditors or from paying judgments. Typically, a creditor or anyone else trying to claim money from the beneficiary cannot access these funds to pay off any debt. Contact Estate Planning Associates to discuss how a special needs trust can be used to your benefit within your estate planning.