What is a Special Needs Trust?
A Special Needs Trust is a specific kind of trust designed for the beneficiary of an individual with a disability.
What is the purpose of a Special Needs Trust?
A Special Needs Trust is written so that the beneficiary may continue to receive governmental benefits (Medicaid, SSI, Etc…) while also enjoying the use of the funding within the trust. These funds are intended to supplement the entire range of goods and services that are not covered by governmental programs.
The importance of choosing a Trustee.
The Trustee is the person or organization that is responsible for managing the trust. Additionally, the trustee is responsible for:
– Investment and Asset Management
– Filing Tax Returns
– Understanding the distribution rules of Special Needs Trusts so as not to jeopardize the beneficiaries governmental benefits.
Selecting the right trustee is of the utmost importance when setting up a Special Needs Trust. This person could be a friend, family member, or any other individual. If a family is having trouble selecting a proper candidate, they may want to consider a Pooled Special Needs Trust.
What are the benefits of a Special Needs Trust?
In addition to the benefit of preserving governmental assistance programs, a Special Needs Trust provides administrative advantages to manage property intended for the beneficiary if the beneficiary lacks the legal capacity to handle his or her own affairs.
Letter of Intent
An important part of administering a Special Needs Trust is the Letter of Intent. A Letter of Intent is a document that outlines your loved one’s functional abilities, likes, dislikes, routines, and more. Additionally the Letter of Intent describes specific medical professionals, resources, and services as to provide the highest level of independence and self-reliance. This letter serves as the foundation of your loved one’s life plan, and should be comprehensive in scope.
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