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What Is a Special Needs Trust?

  • March 23rd, 2018
Q
Special needs trusts (also known as "supplemental needs" trusts) are an important component of planning for a disabled child (even though the child may be an adult by the time the trust is created or funded).
A

Special needs trusts (also known as "supplemental needs" trusts) are an important component of planning for a disabled child (even though the child may be an adult by the time the trust is created or funded). These trusts allow a disabled beneficiary to receive inheritances, gifts, lawsuit settlements, or other funds and yet not lose her eligibility for certain government programs, such as Medicaid or Supplemental Security Income (SSI). The trusts are drafted so that the funds will not be considered to belong to the beneficiary in determining her eligibility for public benefits.

Special needs trusts are designed not to provide basic support, but instead to pay for comforts and luxuries that could not be paid for by public assistance funds. These trusts typically pay for things like education, recreation, counseling, and medical attention beyond the simple necessities of life.

Local Elder Law Attorneys in Ashburn, VA

John Laster

Law Offices of John L. Laster
Falls Church, VA

William Fralin

The Estate Planning & Elder Law Firm PC
Bethesda, MD

Mindy Felinton

Felinton Elder Law & Estate Planning Centers
Rockville, MD

For more on supplemental needs trusts, including the different kinds of trusts available, click here or visit our companion website, Special Needs Answers


Last Modified: 03/23/2018

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