A special needs trust is a way to care for someone with disabilities in the event they are no longer able to manage their own financial affairs. The person who created the trust, known as the “settler” or “granter” of the trust, transfers assets to a trustee who manages them for the benefit of another person, known as the beneficiary. A special needs trust can be used to protect assets that would otherwise be lost in most circumstances when an individual is no longer able to manage his or her own finances. A pooled special needs trust spreads risk across multiple beneficiaries by combining funds from several people into one account.
Who can establish a Special Needs Trust?
A special needs trust is a financial planning tool that can help protect the assets of someone with disabilities. It may be established by parents, grandparents, other family members, or friends to provide for the beneficiary’s care after they are no longer able to work. There are two types of special needs trusts: pooled and individual. A pooled trust provides funds for a group of people who have similar disabilities while an individual trust is set up for one person only. The Georgia Trust Act governs how these trusts can be created in our state. The trustee should apply for approval from the Department of Human Services before beginning to distribute assets or income generated by the trust fund.
What is a Special Needs Trust?
It is important for people with disabilities and their families to know about special needs trusts. A trust can be established by a person who has a disability, or on behalf of the disabled person, with assets that will be used exclusively for the benefit of the disabled person. There are two types of special needs trusts: pooled and individual. A pooled special needs trust is one in which all assets belonging to more than one beneficiary are combined into one fund. The trustee manages this money as if it were his own property, but he must use it only for the benefit of those named as beneficiaries in the trust agreement.
How does a Special Needs Trust work?
A Special Needs Trust is created for someone who has a physical or mental disability that prevents them from taking care of their own needs. This type of trust can provide an individual with benefits that they cannot receive on their own due to the nature of their condition.
Why should I set up a Special Needs Trust for my child?
Special needs trusts are for people with special needs, such as disabilities. A person with special needs may have a difficult time managing their finances or property. Setting up a trust can help to protect them from financial abuse and exploitation. A Special Needs Trust is also known as an ABLE account. It is an alternative to Medicaid that can be used if the beneficiary has too much money in assets to qualify for Medicaid coverage of long-term care services. The maximum amount that can be saved in the account is $100,000 without affecting eligibility for SSI benefits (Supplemental Security Income).