Caring for someone with a disability can be very costly. A special needs trust can be used to provide support in the future for a dependent while avoiding disqualification from assistance programs provided by the government.

 

The funds within the trust are shielded from creditor claims, including landlords, lenders and credit card companies – similar to other types of trusts. One or more trustees oversee and invest assets from the trust, and these trustees can include family members and other independent professionals.

Types of Special Needs Trust

First Party Special Needs Trusts

First-party or self-settled trust, used when the disabled individual receives a court-mandated settlement, an inheritance, or when they own property prior to the disability.

Third Party Special Needs Trusts

A third-party Special Needs Trust is often created and funded by someone other than the beneficiary. The trustee will then be able to manage the Special Needs Trust for the beneficiary, such as making financial decisions and handling assets.

Benefits of a Special Needs Trust

There are benefits to having a Special Needs Trust. It can:

 

  • Provide future support for a dependent
  • Avoid disqualification from other assistance programs
  • Protect funds and assets included in it

 

When your goal is to select the best option available for your loved ones, you will need to plan ahead in order to provide care for dependents coping with disabilities. This likely will require a lot of patience, research, and time, but you will be able to maximize their quality of life as well as safeguard their care in the present, and after you are unable to provide it any longer.

Welfare programs are ever-changing, and it is crucial to select the particular Special Needs Trust for the situation without jeopardizing access or funds by any government assistance eligibility, which could be very costly. Additionally, the laws and rules encompassing special needs trusts are particularly complex. Seth Levy is an expert who can help you set up your special needs trust…without the stress.