Elder Law Firm
UPDATED: March 16, 2021
These trusts are made for disabled or mentally ill loved ones who are not able to manage their own finances appropriately. If people leave assets, specifically lump sums of money, to their disabled relatives through a will, it may disqualify these beneficiaries from continuing to receive government assistance. However, with a special needs trust, the beneficiary can receive the inheritance from the trust in a more managed fashion, while also continuing to receive aid from government assistance programs. Generally, these trusts are used to make sure that the beneficiaries continue to receive government aid, while also receiving their fair share of the inheritance. If the family is not concerned with government benefits and assistance, a special needs trust should still be considered, as it addresses requirements that are specific to special needs situations, unlike other trusts.
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