A special-needs trust is a trust for a person with a disability or a child or an adult with special needs.
With a special-needs trust, the beneficiary can continue to receive public benefits even if they have assets.
Special-needs trust (or supplemental needs trust)
Assets are managed as a SNT, not as their own assets. Therefore, a person with disabilities can continue to receive public benefits while spending funds from an SNT for their living expenses and other needs. There are many kinds of SNTs.
1. Disability or Self-funded trust: A trust established from own assets, from the receipt of insurance benefits or inheritance.
2. parent, sibling, or legal representative-established Trust: This type of trust is established as assets of other than that of the person with disabilities, and the trustee manages to allocate expenses for needed expenses. Upon death, the person who established the Trust can appoint another sibling or person as beneficiary.
The SNT is established by the court, and upon death, the remaining funds can be transferred to the public benefit organizations which provided social benefits to the trustee, or the asset can be bequeathed to others.
A living trust appoints the dissolution of inheritance after the parents' passing. By establishing Special Need Trust, the inheritance can be exempt from taxation, or the government does not consider it as an accountable asset in the determination of public benefit eligibility. Even with social welfare benefits, people with disabilities need deductibles generated from health benefits or basic benefits and funds for quality life. Parents can prepare for the future of their children regardless of taxation or social welfare benefits by establishing Special Needs Trust.
Disability welfare is a societal matter, not an individual or family matter. Therefore, the best way to form a team is to have many members in the team. Formed for a beneficiary, gather interested people with love for your child, and exercise your rights by appointing a management team for the trust.
To minimize the possibilities of damage, the interested group of people can discuss and act together instead of making decisions individually. Interested people can include various people such as old, young, professionals, non-professionals, family, friends, religious clergy, and/or neighbors. The quality of life for the disabled person can be promoted with continuous and consistent future relationships. Form a meeting among an interested group of people and continue with it. They will become consistent members and the trustee when the child turns 18. Above is general information and is not to be considered as legal advice. Individual circumstances vary, therefore it might not be pertinent to one's own individual circumstances. For effective legal advice, overall circumstances and options must be considered and various options applied to individuals must be established with legal basis.
Legal force and degrees vary by state, and laws can be amended as times passes, or the assigned division can change. Depending on a court ruling, meaning can be differently analyzed or the range and operation of law can vary. Make sure to hire and get consultation with legal representatives before taking any action. One must consult with legal representatives and financial experts and make decisions carefully.