A trust is created to hold ownership of money and other assets, managed by a trustee, and used for the benefit of a person. Trusts can be very helpful for people who receive, or wish to receive government benefits, like Supplemental Security Income or Medicaid, but have too much money to qualify. Under certain circumstances, you may have a special needs trust to hold extra money, to help you pay for those things that your SSI or Medicaid won’t pay for, and still get those government benefits. The trust can be used to pay for things like a television, money for a vacation, stereo, funeral arrangements, or a haircut.
A parent, guardian, or other loved one can set up a trust for you, to protect your own money. A parent and other family members can also leave money to you through a trust, as part of your inheritance, while protecting your government benefits. They can also leave you their home, stocks or bonds, or a car through your special needs trust. They can name someone, such as a brother or sister, close friend, bank, or an advocacy organization like The Arc, to act as the Trustee to manage your special needs trust. The trustee helps you spend the money in your trust, and makes sure the money is spent on things you need, while protecting your SSI or Medicaid. The trustee also helps you with your taxes or investments that are part of your trust.
Because a trust is a legal document, and there are some strict rules and requirements for special needs trusts, a knowledgeable attorney should help you, your parents, other relatives, or guardian set up a special needs trust.
If you have questions, or would like more information, please contact The Arc, at 734-729-9100.
Phone code: 1405