A special needs trust (SNT) is a legal arrangement that allows individuals with disabilities to receive financial support without jeopardizing their eligibility for public benefits. (Some attorneys refer to special needs trusts as supplemental needs trusts.) The trust holds assets and funds for the benefit of the person with the disability. Because the assets do not technically belong to the beneficiary, but to the trust, the individual can access necessary services and care while still qualifying for programs like SSI and Medicaid.
The benefits of having a special needs trust can go far beyond one's ability to remain eligible for SSI or Medicaid.
For instance, it can help manage additional funds that a person with a disability may need for medical expenses, therapy, or other essential services that go beyond what SSDI covers. This way, individuals can enhance their quality of life without risking certain other public benefits.
In another scenario, a person with a mental health condition may be unable to manage money. An SNT would allow a qualified trustee to invest and spend that person's funds properly.
Other people with special needs may be able to handle their personal finances but perhaps live in a setting where they could be susceptible to mistreatment by others. In this situation, a special needs trust would provide an appropriate buffer between the beneficiary and individuals who might otherwise take advantage of them.
Read more about why you may want to set up a special needs trust. If you have additional questions or would like to speak with an attorney, call us at 605-275-5665.