The Special Needs Trust
A special needs Trust is often created on behalf of a disabled person by a third party family member. It is an irrevocable Trust meant to provide in addition to what Medical and SSI programs lack. Funds transferred into the special needs Trusts still enable the disabled person to qualify for Medical and/or SSI programs.
The Trustee, along with a two member committee oversee the distribution of the funds for the benefit of the disabled beneficiary. The parents often serve as the initial Trustees.
This Trust is an important comfort to parents in guaranteeing that their disabled child will continue to have funds to provide for him/her in the event of their deaths while ensuring that the disabled child will not be disqualified from Medical or SSI programs.
For people desiring this type of planning for a disabled child, the special needs Trust can either be created inter-vivos (while living) or within their Wills and/or living Trusts-to be effective upon death.Posted by admin | 0 comments