Who benefits from a Special Needs Trust?
WHAT IS A SPECIAL NEEDS TRUST?
A Special Needs Trust, also known as a Supplemental Care Trust, a Supplemental Needs Trust, or an SNT, is designed to enhance the quality of life of a person with a disability by maximizing the resources available to them. SNTs allow assets to be held on behalf of someone with disabilities without jeopardizing their eligibility for means-tested public benefits such as Medicaid or Supplemental Security Income (SSI).
WHAT ARE SPECIAL NEEDS TRUSTS USED FOR?
SNTs may be used:
• to preserve inheritances for disabled individuals without disrupting public benefits
• to preserve personal injury settlements without disqualifying them from public benefits
• for someone with permanent special needs
• for someone who may become disabled and need benefits later
• for a disabled person who cannot manage their own finances
HOW DO SPECIAL NEEDS TRUSTS WORK?
Special Needs Trusts are discretionary, spendthrift trusts. The trustees of these trusts have complete control over distributions made to the beneficiaries. Trustees are responsible for preventing depletion of trust funds, which could be caused either by overspending on the beneficiary’s behalf or beneficiary’s creditors reaching the trust monies. The trustee also has the responsibility of ensuring that the amount of funds distributed to the disabled beneficiary does not render him or her ineligible for government benefits. In addition to handling these technical requirements, the trustee should have a deep understanding of the beneficiary’s needs and desires so that the trust will make the best possible contribution to the beneficiary’s quality of life.
HOW DO I SET UP A SPECIAL NEEDS TRUST?
Contact Solem Williams & McKinley, P.C. today
Call 303-761-4900 or email info@solemlaw.com
SWM's Team specializes in the drafting, ammending, and upholding Special Needs Trusts. They are experts in the field of Medicaid and government benefits - bringing peace of mind to parents of disabled children, and financial freedoms to disabled adults.
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