A Special Needs Trust is a type of trust that is designed to benefit individuals with special needs. These trusts allow individuals with disabilities to receive additional financial support without compromising their eligibility for programs. Special Needs Trusts are an important tool for providing financial security to individuals with disabilities.
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It is typically set up by a family member, such as a parent or grandparent, for the benefit of a disabled individual. The trust can provide the beneficiary with additional income, services, and other support that is not covered by government programs. For example, the trust can provide funds for medical care, education, housing, and other necessities.
Special Needs Trust is managed by a trustee, who is responsible for making sure that all the assets of the trust are used to benefit the disabled individual. The trustee is also responsible for filing tax returns and making sure that the trust is in compliance with applicable laws and regulations.
They can also be used to protect assets from being lost to creditors or other claimants. This is done by holding the assets in the trust, rather than in the individual's name. This can help to ensure that the beneficiary's interests are protected and that the assets remain available for the beneficiary's benefit.