A special needs trust is a document required by law, created purposely for a person who has a mental disorder, a physical disability or chronic illness with an age of fewer than 65 years who is getting government benefits for medical treatment and support such as supplementary security income, housing, Medicaid among others. For one to take advantage of all these, the government considers various issues such as the cash one gets or has, the inherited assets among others. When an individual has all these and the government knows about it he/she gets minimal government benefit. To ensure that a person gets these government benefits entirely, the family members ensures that he gets the inherited income and assets through a trust.
A special need trust is where a trustee keeps assets for them to benefit an individual who has a particular case. The trustee has the right to use the property or income for the benefit of the unique individual. It can be through paying rent, paying for services such as salon, electricity bills or any bills incurred. The money is supposed to pay for services that the government has not catered for to ensure that the individual lacks nothing that is essential to his life.
There are various types of special needs trust depending on who should set up the trust. When a person is chosen to be a trustee, the trustee will have discretion over the trust property and will spend money to the benefit of the beneficiary. Firstly is the family type. This is where the parents provide the money needed to set up the trust during their lifetime indicating that their disabled daughter or son is the beneficiary of these assets and income or writing it in their will. For a special family need usually, there is housing, food, and clothing as these are the basics that every child gets and so the government benefit to this child reduces.
Secondly, pooled trust, It is established by a non-profit association which receives funds from different people. This can be parents relatives, friends or even the beneficiaries. The trust gets money of many recipients, invests and manages them. Each beneficiary has his/her account. When a beneficiary dies, the funds are retained in the trust to help others with no funds but are physically challenged.
Lastly, is court-ordered special needs trust, used only for special cases i.e. where the physically challenged has inherited money or received a court statement, and that money would otherwise block him from getting the government benefits? The trust can be set by parents, guardians or the court. The trust specifies that after the physically challenged has passed on, the funds remaining will be used to pay the state for the medical assistance provided by the government.
A special need trust is critical for the people with disability. When left alone without any support many ends up suffering due to lack of food or no treatment, so these trusts help them. The trust ensures that the physically challenged gets what he needs as prescribed rather than leaving him with somebody who gets tired of supporting him after a short while. The best trust is the special family trust since the money they save for a disabled is used for a lifetime doing some things such as education. Parents should keep more for their physically challenged children for it will help them more.
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