Individuals with disabilities often receive governmental assistance to maintain their quality of life. A Special Needs Trust is used to supplement, not replace, public benefits such as SSI or Medicaid. A special needs trust (SNT) is a legal tool that helps people with disabilities or special needs receive financial support while still receiving public benefits. The Trustee of a Special Needs Trust spends the funds within the trust for the benefit of the beneficiary of the trust while carefully considering and monitoring the impact of such expenditures on the beneficiary’s entitlement to public benefits.
Special needs trusts can be first party or third-party. A first party trust is when the individual needing assistance puts their own money (or a settlement) into the trust. A third-party trust is when someone other than the individual needing assistance puts money into the trust for the benefit of the disabled person. Regardless of the type, SNTs can be used to pay for a variety of expenses, including:
- Medical costs
- Service animals
- Assistive technology
- Computers
- Phones
- Recreational activities
- Car insurance
- Home care
- Transportation
- Housing costs
SNTs can be established by a parent, grandparent, legal guardian, court, or the person with the disability themselves. The most common type of SNT is a third-party SNT, which is funded by someone other than the beneficiary. SNTs can help people with disabilities save money and ensure that they have ongoing financial support after their parents or caregivers have passed away
These types of trusts can be game changers for families who need them. If you would like to know more about them please visit this website at https://shepherdelderlaw.com. Samantha Shepherd specializes in helping people establish these types of trusts. I had the privilege of meeting her last month in Kansas City. Below is a video that she has created but please visit her website for more information and if you are interested give them a call or email.