A trust is an instrument by which one person holds property for the benefit of another. A special needs trust is a particular trust made specifically for the benefit of a disable or mentally ill beneficiary. One of the main reasons a special needs trust
is needed is to ensure that the beneficiary does not lose governmental benefits. In order to qualify for most governmental benefits, an individual cannot have more than $2,000.00 in their “possession.” These trusts are created so that any money that the beneficiary obtains will be used for their benefit but not in their discretion. Living on governmental benefits is not enough for most people with mental or physical handicaps and that is why using a special needs trust can ensure that your loved ones will still be able to enjoy a good quality of life. If you or someone you know has a mentally or physically disabled individual in their lives and would like to discuss how a special needs trust can help their estate plan, please call us for a free consultation.
