A special needs trust has several benefits. It helps preserve eligibility for government benefits such as Medicaid and Supplemental Security Income. The benefits offered by the government programs are subject to strict income guidelines, which can prevent an individual from meeting these requirements. However, the money in a special needs trust can help supplement these benefits. In many cases, it can be advantageous to place money in a special needs trust, as it is easier for a disabled person to maintain eligibility for government benefits.
Another benefit of a special needs trust is the fact that it preserves eligibility for government benefits and names a guardian for the disabled child. While parents may want to leave these assets to their child, it is often stressful to have multiple trusts set up. For these reasons, it is best to choose a separate special needs trust if there are several contributors to the child.
A special needs trust also protects a disabled person from being abused or neglected. As long as the Trustee doesn’t misuse funds from the trust, there is no risk of abuse. It is vital to protect the disabled person’s finances, and a Special Needs Trust protects them from abuse. Unlike a general living trust, a SNT doesn’t give out money to the child every time they ask for it. Instead, it provides money only for specific purposes.
A special needs trust is a legal structure that allows disabled people to receive public benefits like Medicaid and Supplemental Security Income. In addition, the funds in a special needs trust are not counted as the beneficiary’s assets in calculating eligibility for government benefits. Therefore, a special needs trust allows individuals with disabilities to receive money to help them improve their quality of life. They may otherwise receive government benefits, but a special needs trust is different.