Summary
A special needs trust is a way that can help preserve an individual’s need for public assistance program eligibility, and provide for their supplemental needs.
Important: State Laws Vary
It is critical to note that state law varies on how special needs trusts are executed and interpreted. It is important that clients consult with their legal professional prior to executing any estate planning document.
What is a Special Needs Trust?
A special needs trust helps individuals who have a need for public assistance program eligibility to provide for their supplemental needs. Money from this trust can not generally be distributed directly to the disabled person. The money is distributed to third parties for payment for goods and services rendered to the disabled person.
Guardians of a special needs person should consider setting up a special needs trust to ensure adequate funding to provide for their child’s long-term quality care.
The laws governing special needs trusts are complicated and vary by state. It is recommended that you work with an attorney who is experienced in this area, and has a strong working knowledge of current legislation affecting the special needs person’s public assistance program(s).
A grantor can serve as their own trustee, or the grantor can appoint a family member or corporate trustee to serve. Edward Jones Trust Company can serve as either current trustee or successor trustee for your client.