What is a special needs trust?

Many people know someone who has special needs. That means they have a disability (either physically or mentally) and require additional help and support. A trust in business is a relationship which gives the trustee the right to hold on to possessions or resources for the beneficial party. So, you may ask yourself what is a special needs trust?

Special needs trust options

It is also known in some jurisdictions as a supplemental needs trust, a special needs trust is set up so you can leave the property directly to your loved one with special needs. A trust written properly, also allows your beneficiary to receive funds from the trust while receiving government benefits. The government assistance programs that your special needs loved one can qualify for include, subsidized housing, Supplemental Security Income (SSI), vocational rehabilitation and Medicaid. The special needs trust is also a great idea because it ensures that your disabled loved one will be taken care of properly and their precise needs will be addressed. There are three types of special needs trusts to consider. They are:

  1. The first-party trust- this is funded with assets belonging to the beneficiary. If the person is under 65, considered disabled and currently receives government assistance, this may be a good option. This type of trust is usually set up by a parent or guardian.
  2. Third-party trust- unlike the first-party trust, this trust is funded with assets owned by the parents or relatives, not the beneficiary. The trust will also allow the beneficiary to qualify for needs-based government programs. It also ensures that your loved ones medical needs will be taken care of once the parents pass away.
  3. Pooled trust- this type of trust is managed by a nonprofit organization. The assets are pooled for investment with a sub-account managed by the nonprofit organization for the beneficiary.

Special needs trusts can offer piece of mind that your loved one with special needs will be taken care of once you pass away. If you decide to leave a trust for your loved one, it is good to know about the possibilities.

No Comments

Leave a comment
Comment Information
Set up an Initial Consultation »

Need Our Help?

Contact us today to set up an initial consultation with an attorney in Truckee, Sacramento, Reno, Tahoe City, South Lake Tahoe, or Incline Village/Crystal Bay. We can be reached at 530-214-0385. Or send us an email.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Locations – For an Appointment, Call 530-214-0385

Truckee Office
10280 Donner Pass Road
Truckee, CA 96161

Phone: 530-214-0385
Fax: 530-214-8158
Truckee Law Office Map

Sacramento Office
1830 15th Street
Suite 100
Sacramento, CA 95811

Phone: 530-214-0385
Fax: 916-848-3500
Map & Directions

Reno Office
527 S. Arlington Avenue
Reno, NV 89509

Phone: 530-214-0385
Fax: 775-201-1444
Map & Directions

South Lake Tahoe Office
3079 Harrison Avenue
Suite 29
South Lake Tahoe, CA 96150

Phone: 530-214-0385
Fax: 530-214-8158
Map & Directions

Tahoe City Office
305 West Lake Blvd.
Suite 4
Tahoe City, CA 96145

Map & Directions

Incline Village/Crystal Bay
22 State Highway 28
Crystal Bay, NV 89402

Map & Directions