A special needs trust (also known as an SNT trust or supplemental needs trust) is a constitutional structure that is set up to support a person with incapacity. These trust funds may include current assets, or they can be set up so that the beneficiary will get future funds. These trust funds are intended to protect and hold assets for beneficiaries with special needs. You can also click here now if you are looking for special needs trust.
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This legal structure can be used to collect and manage assets and may receive contributions from:
- Gifts from family members in their lifetime
- A will is a plan that parents or other relatives create to leave life insurance proceeds or assets upon their death.
- When the trust is no longer required, it will be dissolved. This usually occurs when the beneficiary dies or funds are spent.
Law on Special Needs Trust: Preserving Government Benefits
In Arizona, if you wish to leave money or property to someone with special needs, it is important to plan carefully. You could endanger the ability of your loved one with a disability to receive both Medicaid or Supplemental Security Income (or SSI) benefits. In Arizona, special needs trusts are the solution. Instead of leaving cash or property to a loved one, you will leave these assets to their special needs trust.
You must choose a trustee when creating a special need trust. This person will be able to spend money for your loved one and have complete discretion over the trust's property. Administrators for SSI or Medicaid will disregard the trust assets of your loved one when determining eligibility.