Special needs trusts are important for your disabled loved one. They provide a source of funding for the beneficiary without endangering their eligibility for government benefits like Medicaid and SSI, allowing for supplemental financial support. But who, exactly, is allowed to set up a special needs trust? Can just anyone do it?
The answer to this question depends on what type of special needs trust is being set up. There are three main types: a family trust, a pooled trust, and a court-ordered trust.
A Family Special Needs Trust can be set up by the parents of the beneficiary either during their lifetime or after their death by direction in their will. If it’s a living trust, then anyone in the family — and even friends — can contribute funds to the trust, either by giving money directly or by including the trust as a beneficiary in their own will.
A Pooled Special Needs Trust must be established by a nonprofit organization, although anyone can contribute funds to it once it’s set up. This type of trust, as its name suggests, takes funds from multiple sources and pools them together, then manages and invests them.
A Court-Ordered Special Needs Trust may also be referred to as a Type A Special Needs Trust, and must be set up by the beneficiary’s parents, grandparents, legal guardian, or the court.
Regardless of which type of special needs trust you are interested in establishing, keep in mind that these trusts are complicated and require the expertise of a professional. If they are set up incorrectly, the beneficiary may find himself ineligible for the government benefits he desperately needs.
If you have questions about setting up a special needs trust, or you are simply ready to begin the process of investigating what a special needs trust is, please get in touch with us! We are always willing and ready to help, and we can make sure your trust is set up appropriately. Don’t wait any longer. Contact us today!