What is the main purpose of a Special Needs Trust?
A Special Needs Trust is designed to protect a beneficiary’s eligibility for essential public benefits while still providing funds for additional needs that improve their quality of life. It acts as a safeguard, ensuring financial support does not unintentionally disqualify them from programs such as Medicaid or SSI.
Can I set up a Special Needs Trust without a lawyer?
While it may be possible to find templates online, creating a legally sound Special Needs Trust is complex. Both the Federal law and Missouri law have very specific requirements, and even a small mistake could affect eligibility for benefits. Working with an experienced attorney ensures the trust is structured properly and serves its intended purpose.
How is a Special Needs Trust different from a regular trust?
Unlike a traditional trust, a Special Needs Trust is specifically designed to supplement—not replace—government benefits. It allows the trustee to pay for things like education, recreation, or personal care, without interfering with income or asset limits that determine eligibility for public assistance.
Who can serve as trustee of a Special Needs Trust?
The trustee can be a trusted family member, friend, professional fiduciary, or even a bank or trust company. Choosing the right trustee is one of the most important decisions, as they will be responsible for managing the trust funds and making sure distributions follow both the law and the beneficiary’s best interests.
When should I create a Special Needs Trust?
The best time to create a Special Needs Trust is as early as possible, ideally while planning your estate or considering your long-term financial strategy. Setting it up now provides peace of mind that your loved one will have consistent protection and resources, both during your lifetime and after.
