Special Needs Trust
Special Needs Trust
Securing Financial Support for Loved Ones with Disabilities
A special needs trust is like a savings account set up by parents or guardians for a child who has special needs or disabilities. The important thing about these trusts is that they allow the child to still get government benefits like Medicaid.
There are two main types: Revocable, which can be changed, and Irrevocable, which can't be changed.
There are three kinds of special needs trusts:
First-Party: Funded by the disabled person's own money, like inheritance or settlements, typically unchangeable if the person is under 65.
Third-Party: Family or friends put money or assets into this trust for the disabled person's benefit. A trustee, chosen by the family, makes spending decisions.
Pooled: This trust is funded by a nonprofit organization, and a professional manages it instead of a family member.
Benefits of a Special Needs Trust
Protects Government Benefits: A trust ensures that a child with special needs can still receive important government aid like SSI and Medicaid.
Financial Security: The trust guarantees lifelong care for essentials like groceries and memberships, managed by a trustee.
Support from Others: Family and friends can contribute to the trust over time to cover increasing expenses and unexpected costs.
Protection Of Assets: Valuable assets, like real estate, are protected from loss or mismanagement within the trust.
Lifelong Oversight: With a trustee in charge, individuals with special needs have continuous care and support assured throughout their lives.
Securing Financial Support for Loved Ones with Disabilities
A special needs trust is like a savings account set up by parents or guardians for a child who has special needs or disabilities. The important thing about these trusts is that they allow the child to still get government benefits like Medicaid.
There are two main types: Revocable, which can be changed, and Irrevocable, which can't be changed.
There are three kinds of special needs trusts:
First-Party: Funded by the disabled person's own money, like inheritance or settlements, typically unchangeable if the person is under 65.
Third-Party: Family or friends put money or assets into this trust for the disabled person's benefit. A trustee, chosen by the family, makes spending decisions.
Pooled: This trust is funded by a nonprofit organization, and a professional manages it instead of a family member.
Benefits of a Special Needs Trust
Protects Government Benefits: A trust ensures that a child with special needs can still receive important government aid like SSI and Medicaid.
Financial Security: The trust guarantees lifelong care for essentials like groceries and memberships, managed by a trustee.
Support from Others: Family and friends can contribute to the trust over time to cover increasing expenses and unexpected costs.
Protection Of Assets: Valuable assets, like real estate, are protected from loss or mismanagement within the trust.
Lifelong Oversight: With a trustee in charge, individuals with special needs have continuous care and support assured throughout their lives.
"A Special Needs Trust helps those who can't manage finances due to disabilities. Eligibility varies by state and requires a special needs trust attorney."
"A Special Needs Trust helps those who can't manage finances due to disabilities. Eligibility varies by state and requires a special needs trust attorney."
Those in Need Include:
Individuals with Disabilities: Such as cerebral palsy, autism, brain damage, Down syndrome, chronic mental illness, paralysis, or cystic fibrosis.
Dependents on SSI and Medicaid: Those reliant on Medicaid or SSI due to physical injury or mental illness, limiting their ability to work, ensuring ongoing financial support.
Financially Dependent Individuals: Individuals reliant on parents or caretakers, who may face financial insecurity after their caregivers' passing, warranting the establishment of a trust for continued care.
Those in Need Include:
Individuals with Disabilities: Such as cerebral palsy, autism, brain damage, Down syndrome, chronic mental illness, paralysis, or cystic fibrosis.
Dependents on SSI and Medicaid: Those reliant on Medicaid or SSI due to physical injury or mental illness, limiting their ability to work, ensuring ongoing financial support.
Financially Dependent Individuals: Individuals reliant on parents or caretakers, who may face financial insecurity after their caregivers' passing, warranting the establishment of a trust for continued care.
How to Set Up a Special Needs Trust:
Start with Legal Guidance: Seek assistance from a special needs trust attorney to set up the trust correctly.
Appoint a Trustee: Choose someone to manage the trust and name a backup in case of incapacity.
Fund the Trust: Add money, assets, or property to the trust after completing necessary paperwork.
Trust Administration: A trusted person or administrator handles bill payments and maintains records.
Consider Termination: The trust usually remains active until the beneficiary's death, but termination may occur in exceptional circumstances.
How to Set Up a Special Needs Trust:
Start with Legal Guidance: Seek assistance from a special needs trust attorney to set up the trust correctly.
Appoint a Trustee: Choose someone to manage the trust and name a backup in case of incapacity.
Fund the Trust: Add money, assets, or property to the trust after completing necessary paperwork.
Trust Administration: A trusted person or administrator handles bill payments and maintains records.
Consider Termination: The trust usually remains active until the beneficiary's death, but termination may occur in exceptional circumstances.
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888-318-8551
888-318-8551
© 2025Legacy Promises Network - All Rights Reserved