Define: Special Needs Trust

A Special Needs Trust is a legal arrangement that allows individuals with disabilities to have assets held in trust for their benefit without jeopardizing their eligibility for government benefits such as Medicaid or Supplemental Security Income (SSI).

A Special Needs Trust can be created by a parent, grandparent, legal guardian, or a court. It can also be established by the individual with special needs themselves, as long as they have the legal capacity to do so.

A Special Needs Trust allows individuals with disabilities to receive financial support while still maintaining eligibility for government benefits. It can provide for their supplemental needs, such as education, medical expenses, transportation, and recreational activities.

Yes, a Special Needs Trust can be used for any type of disability, whether it is physical, mental, developmental, or cognitive.

Yes, there are different types of Special Needs Trusts, including first-party or self-settled trusts, third-party trusts, and pooled trusts. Each type has its own specific requirements and benefits.

No, funds from a Special Needs Trust should not be used for basic living expenses such as food, shelter, or clothing. These expenses are typically covered by government benefits.

In most cases, a Special Needs Trust cannot be modified or revoked once it is established. However, certain circumstances may allow for modifications or termination, such as changes in the beneficiary’s needs or if the trust becomes financially unfeasible.

Yes, a Special Needs Trust can receive assets from a will or life insurance policy. It is important to properly designate the trust as the beneficiary to ensure the assets are transferred correctly.

Yes, a Special Needs Trust can own a home or other property. However, it is crucial to consult with an attorney to ensure the trust is properly structured to avoid any negative impact on government benefits.

Yes, a Special Needs Trust can be used to pay for travel or vacations as long as it is for the benefit and enjoyment of the individual with special needs. However, it is important to follow the guidelines and restrictions set by government benefit programs to avoid any potential issues.