A special needs trust (SNT) is a type of trust created to provide financial and other benefits to individuals with disabilities, without affecting their eligibility for public assistance programs. These trusts are often funded by family members, but can also be funded with the disabled person’s own assets. If you are looking for special needs trusts in Arizona, you need to contact a reputed service provider.
In order to be effective, a special needs trust must be carefully structured and drafted. Generally, the trust must be irrevocable, meaning that it cannot be altered or modified once it’s established. This ensures that the funds in the trust are not available to the beneficiary’s creditors.
The trust must also be structured to ensure that any distributions from the trust do not affect the beneficiary’s eligibility for government assistance. This means that the trust must include language that prevents any distributions from being counted as income or resources for eligibility purposes.
Another important aspect of a special needs trust is the selection of a trustee. This individual is responsible for managing the trust assets and making distributions according to the instructions in the trust document. The trustee must be a person of trustworthiness and integrity who understands the unique needs of the disabled individual.
Finally, the trust document must include instructions regarding how the trust assets are to be managed and distributed. These instructions must be tailored to the specific needs of the beneficiary and may include provisions for the payment of medical expenses, recreational activities, and other services that are necessary for the disabled individual’s well-being.