Special Needs Trust
A Special Needs Trust is used when a beneficiary has disabilities which can be either physical or mental. This type of Trust is written to allow a beneficiary the ability to enjoy the use of property which is held in Trust for his or her benefit. The Special Needs Trust can also provide for additional or special services and treatments for these individuals, while preserving their government benefit eligibility for programs through the Social Security Administration such as the Supplemental Security Income program or Medicaid benefits. These individuals are likely to have long-term medical or support needs, and the Special Needs Trust can be a solution to supply funding to provide lifetime quality care. Special Needs Trusts are most often used when dealing with an inheritance or personal injury settlement monies.
Another feature of a Special Needs Trust is if a beneficiary lacks the legal capacity to handle their own financial affairs, funds can be administered for their benefit and prevent them from squandering or losing assets due to poor judgment or the inability to understand or comprehend their business affairs.