Many trusts are designed specifically for financial planning. In fact, a trust can help facilitate a legal arrangement to directly benefit individuals with disabilities. This can occur without jeopardizing their eligibility for government benefits. Most trusts can be created by parents, grandparents, or other loved ones. In addition, a trust may be funded with a variety of assets, such as cash, investments, or property.
There are two main types of SNTs
1. First-party SNTs
A first-party SNT is created with assets that belong to the individual with the disability.
2. Third-party SNTs.
A third-party SNT is created with assets that belong to someone else, such as a parent or grandparent.
SNTs can be used to pay for a variety of expenses, such as housing, transportation, medical care, and education. They can also be used to provide for the individual’s long-term care needs.
One of the most important benefits of an SNT is that it can help to protect the individual’s eligibility for government benefits. Many government benefits, such as Supplemental Security Income (SSI) and Medicaid, are means-tested, which means that they are only available to individuals with limited financial resources. If an individual with a disability has too much money in their own name, they may lose their eligibility for these benefits.
Trusts can help to prevent this by keeping the individual’s assets in a separate trust. The trustee of the trust can then use the assets to pay for the individual’s needs without affecting their eligibility for benefits.
Trusts can be a complex legal arrangement, so it is important to work with an experienced attorney to create one. However, they can be a valuable tool for families of individuals with disabilities. By helping to protect their financial security, SNTs can help these individuals to live independent and fulfilling lives.
Here are some additional benefits of trusts designed for financial benefit:
- They provide for the individual’s long-term care needs.
- They help to ensure that the individual’s assets are managed wisely.
- They help to protect the individual’s assets from creditors.
- They help to avoid probate court.
If you are considering creating a trust, it is important to speak with an attorney to discuss your specific needs.