What is a Special Needs Trust?
by
Christopher Ariano on Apr. 07, 2015
Estate Wills & Probate Estate Estate Planning Estate Trusts
Summary: When creating a special needs trust, you will be able to have any money or property received put directly into a trust account.
Many disabled Tucson residents rely on government benefits to make ends meet, such as Supplemental Security Income (SSI), and/or Medicaid benefits. Having a disability makes it extremely difficult for many people to get to the grocery store, make it to doctor’s appointments, and accomplish other activities of daily life. Regardless of the severity of one’s disability, having government benefits may be the only way to live from day to day.
There is one very important thing to
keep in mind if you or your loved one is disabled and receiving government
benefits. If you are disabled and you
receive money or property from anyone in any form, this could cause you to lose
your government benefits. In order to
keep your government benefits and still receive money or property from another
(whether a person or entity), you may need to create what is called a “special
needs trust.”
When creating a special needs trust, you will be able to have any money
or property received put directly into a trust account. A Tucson Estate Planning Attorney will help
you choose a trustee (such as a close family member) who will oversee the trust
property. For example, if you are in
need of medical care, and your government benefits are not sufficient to cover
the cost of such medical care, the trustee of your special needs trust has
discretion to use money from the special needs trust in order to pay for out of
pocket medical expenses.
It is important to understand that
the trustee cannot simply give money or property directly to the disabled
beneficiary. Direct receipt of money or
property can result in the loss of your government benefits. As such, it is crucial that the trustee
properly administers the special needs trust pursuant to the advice of a
seasoned Tucson estate planning attorney and in accordance with Arizona law.
A special needs trust will last so long as the trust is needed. If the disabled individual passes away, there will no longer be a need for the trust. Likewise, if all of the money and property in the trust have been exhausted, then the trust is no longer of use. Click for more info.
