Special Needs Trusts

What is a special needs trust?

A special needs trust is created by a family member or other person for the benefit of a disabled person (the beneficiary) using the disabled person’s money or money he or she will receive.

Why would you need a special needs trust?

These trusts are usually set up when a disabled person gets money from a lawsuit, settlement, an estate, or insurance policy.

Can you still get government benefits with a special needs trust?

Yes. A special needs trust is usually created to keep the disabled person eligible for government benefits. Upon the death of the disabled individual, the trust must reimburse Medicaid for benefits paid on behalf of the disabled person before the trust can be disbursed to any other surviving beneficiaries or heirs.

Last updated on .

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