Special Needs Trust

A Special Needs Trust (SNT) is a legal instrument designed to benefit an individual who has a disability. It is a specific type of trust that allows a disabled person to receive inheritances, lawsuits, gifts, or other funds without losing their eligibility for certain government programs such as Medicaid and Supplemental Security Income (SSI). The trust is managed by a trustee who has the discretion to spend the trust income for the benefit of the disabled person.

The Importance of a Special Needs Trust

The establishment of a Special Needs Trust is crucial when planning for the future of a child with special needs. Attorneys at Citadel Law Corporation can ensure that a special needs child receives the assets and funds from your estate, while remaining eligible for federal benefits that he or she is entitled to.

The Role of a Trustee in a Special Needs Trust

In a Special Needs Trust, the trustee is in charge of managing the assets, instead of the beneficiary or child who has special needs. This arrangement ensures that owning assets such as houses, cars, or other personal items will not render your loved one ineligible for specific federal benefits.

The Benefits of a Special Needs Trust

A Special Needs Trust provides several benefits:

• Preserving Eligibility for Federal Benefits: The assets held in the trust do not count towards the asset limit for federal benefits, ensuring the beneficiary remains eligible for Medicaid, Supplemental Social Security Income, and other government benefits.
• Asset Management: The trustee manages the assets in the trust, providing financial stability for the beneficiary.
• Flexibility: The trust can be used for a wide range of expenses that benefit the individual, including education, recreation, and personal care.

Setting Up a Special Needs Trust

Setting up a Special Needs Trust requires careful planning and legal expertise. It is crucial to work with an experienced estate planning attorney who understands the complexities of Special Needs Trusts. If you are considering establishing a Special Needs Trust in California, Citadel Law can assist. Contact us at (800) 662-0882. Our experienced estate planning attorneys can provide personalized assistance and guide you through the process.

Conclusion: The Power of a Special Needs Trust

In conclusion, a Special Needs Trust is a powerful tool for providing financial security for a loved one with special needs. It allows for the management and distribution of assets in a way that does not jeopardize the beneficiary’s eligibility for federal benefits. However, setting up a Special Needs Trust requires careful planning and legal expertise. Therefore, professional advice is highly recommended to ensure the trust is set up correctly and aligns with the beneficiary’s needs and circumstances.