<\/span><\/h3>\nThese trusts work like other\u00a0Trusts\u00a0– you need to set it up and fund it prior to it holding any power.<\/p>\n
Establishing a Special Needs Trust:<\/em><\/strong><\/p>\n\n- Devise the Trust document<\/li>\n
- Being the Grantor (or Settlor, the individual devising the Trust), you are going to name someone to manage the assets in the trust<\/li>\n
- You are able to be the Trustee and the Grantor<\/li>\n
- Appoint a Successor Trustee to take over in the event you become debilitated or once you meet your demise<\/li>\n
- Appoint the individual with special needs as beneficiary of the trust<\/li>\n
- Upon signing and having it notarized, the Trust goes into effect<\/li>\n<\/ul>\n
Funding a Special Needs Trust:<\/em><\/strong><\/p>\n\n- You are then going to receive a Trust Tax ID number from the Internal Revenue Service<\/li>\n
- You then can include assets into the trust<\/li>\n
- You will receive a Trust Tax ID number from the Internal Revenue Service<\/li>\n
- Other portions of your Estate Plan (Revocable Living Trusts, beneficiary designations, Wills, etc.) can fund the Trust, along with financial institutional accounts and other assets or property<\/li>\n<\/ul>\n
<\/span>Maintaining Eligibility for Government Benefits<\/span><\/h2>\nA special needs trust is a kind of trust intended to benefit individuals that have disabilities at the same time retaining their eligibility for governmental benefits.\u00a0 These trusts can be a useful device for families of individuals that have special needs, as they enable them to care for their loved ones without risking their ability to receive government aid.<\/p>\n
<\/span>Providing Long Term Financial Security for Individuals with Special Needs<\/span><\/h2>\nEqually first party and third-party special needs trusts must restrict the payments made through the trustee to or for the benefit of the special needs beneficiary, meaning that the trust property must only be used to supplement, not substitute, what the special needs beneficiary is getting by means of government assistance.<\/p>\n
A special needs trust (SNT) is a legal means that enables funds to be earmarked for a person with a disability. It is designed to help preserve the funds for the individual, at the same time protecting their access to public benefits. This trust can be devised by or for any person that has a significant disability, as defined by Social Security Administration regulations. These regulations include individuals with a wide multitude of physical, mental, and developmental issues, like (but not limited to) Alzheimer\u2019s, autism spectrum disorder, dementia, multiple sclerosis, heart conditions, diabetes, loss of vision and bouts of depression.<\/p>\n
Creating a third-party special needs trust as part of your estate plan is how you can provide for your loved one that has a disability or special need. An appropriately drafted and funded special needs trust can guarantee that your loved one is eligible for possible government assistance at the same time having funds for supplementing that assistance.<\/p>\n
<\/span>Arizona Family Law<\/span><\/h2>\n