Breakdown of a Special Needs Trust – Loyalty Driver

People don’t really understand the reason why trusts for special needs need to be created. They are lost and confused.

There are many, many types of trusts. In addition to special needs trusts, we have many other types, but even within the realm of trusts for special needs, it can be really confusing because there are so various variations. A third-party special need trust is not created by either the beneficiary or spouse of the beneficiary. The trust usually is created by a relative like an adult or grandparent. It should not contain the assets of the beneficiaries. First-Party Special-Needs Trusts are able to be only funded through the property of the beneficiary. This can include the proceeds of an inheritance or of a lawsuit. The trust may be funded by the beneficiary’s assets. However, the First-Party Special Needs Trust regulations require those who are beneficiaries to set it up via their parents, the legal guardian or the court. A further requirement is that the beneficiary not have reached the age of 65 by the time the trust’s funds are deposited.
A properly drafted trust agreement can cover the trust’s responsibility of reimbursement to programs run by government like Medicaid, SSI and their equivalent states. In the case of Third-Party Special-Needs Trusts, the remainder beneficiaries will receive the entire balance of the trust because its assets are not dependent on Medicaid payment provisions in the event of loss of the beneficiary. sfbz7yu84x.

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