There are many different types of trusts that can be used for estate planning purposes. In this three part series you’ll learn more about some of the most common types of trusts you might consider and how to consult with an experienced Pasadena estate planning lawyer to decide what is right for you. And today’s blog will discuss a special needs trust.

A special needs trust is one that is created for a person who is currently receiving or might rely on government benefits. Receiving outright assets could disqualify this person from necessary programs, such as supplemental security income or Medicaid.

The use of a special needs trust is permitted under Social Security rules, so long as the disabled beneficiary is unable to control the frequency of trust distributions, cannot revoke the trust directly, and does not control the amount of distributions. This enables a party with special needs to receive necessary support long after the creators of the trust have passed away.

There are specific legal definitions and requirements that must be met for a special needs trust to be viewed as legally valid. Expenses from a special needs trust can assist with a variety of different expenses, such as insurance, maintenance, rehabilitation, eye glasses, equipment, dental expenses, essential dietary needs, computer equipment, trips, and more. The list is very extensive and an experienced Pasadena estate planning lawyer can help you figure out what is most applicable for your individual case.

Comments are closed.