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Create An Appropriate Special Needs Trust

Written by: Douglas L. Kaune

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Posted about 2 years ago. 0 helpful votes, 0 comments

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Who Should be Trustee

Itis important to have the right trustee taking control of assets in a SNT. You should consider a close family member first, but if you do not want to involve family in this process, you can consider a trust company or attorney to act instead. It should be someone who takes the job seriously, has general understanding of the role and is willing to dedicate the time and effort for your loved one. http://www.utbf.com/trust-estate/2009/10/strengthening-your-special-needs-trust/

What is the proper legal language for the trust?

This trust has to be written with particular language to allow it to protect the assets for the special needs beneficiary. The trust CANNOT be for the beneficiary's health, support and maintenance. The income and principal should be paid out ONLY at the sole and absolute discretion of the trustee. There should be nothing to require payment to the beneficiary. Use of the wrong legal language will cause the special needs beneficiary to be disqualified from the public benefits.

Consider Additional Income Beneficiaries

In order to strengthen the trust protection, consider adding additional income beneficiaries during the lifetime of the special needs beneficiary. For example, name a sibling as another option to receive income. This further distances the special needs beneficiary from sole ownership and adds another layer of protection.

What does a Special Needs Trust Pay for?

Special needs trusts are not support trust, but instead pay for comforts and luxuries that could not be paid for by public assistance funds. These trusts typically pay for things like education, recreation, counseling, and medical attention beyond the simple necessities of life. The trustee is permitted to use trust funds for food, clothing and housing if the trustee decides it is appropriate in his or her sole discretion.

What are some "special needs?"

Special needs can include medical and dental expenses, annual independent check-ups, necessary or desirable equipment such as medical gear or transport, vocational training, insurance, transportation and special dietary needs. If the trust is sufficiently funded, the Trustee can also pay out spending money, purchase electronic equipment and appliances, computers, vacations, movies, payments for a companion and other quality-of-life enhancing items.