Special Needs Trusts
Everything You Need to Know About Special-Needs Trusts
If you want to provide for a loved one who is affected by a mental or physical disability, one option available to you is with a special-needs trust, which our Middlesex County probate lawyer can help you learn more about. Close to 54 million people in the U.S. suffer from some type of disability, which means it’s likely that someone you know is disabled. Before you create a special-needs trust, you should have a better understanding of what is included in this type of trust and how your loved one could benefit from it.
What Are Special-Needs Trusts?
A trust is a type of account that’s created to be managed by a trustee for the benefit of someone else, who is referred to as a beneficiary. Trusts are typically designed to last until the funds from the trust are fully used by the beneficiary or until the beneficiary dies. A special-needs trust is aimed at providing assistance for an individual who is suffering from a physical or mental disability and is currently unable to properly manage their own finances. These trusts ensure that the beneficiary does not lose the various government benefits that they are currently receiving, which extend from Social Security income to Medicaid benefits.
Funds that are provided to a special-needs individual through a standard will may cause this individual to be disqualified from using government benefits. While the money or other assets from a will would be given directly to the special-needs individual, the assets within a special-needs trust are managed by a trustee instead of the person with special needs. Although this is a small difference, it determines whether or not the person can still receive their government benefits. Contact our New Jersey probate lawyer to determine if you should create one of these trusts.
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