“Special Needs Trusts” are powerful and important tools to be used in planning for the needs of individuals with physical, psychiatric, and/or intellectual disabilities. Liebmann Family Law – Located In Newtown Pa - Every legal need is unique; Contact Us Today At - 215.860.8200
“Special Needs Trusts” are powerful and important tools to be used in planning for the needs of individuals with physical, psychiatric, and/or intellectual disabilities. The funds in a properly established Special Needs Trust (“SNT”) can be used to supplement public aid and assistance, such as Supplemental Security Income (“SSI”) and Medicaid, without disqualifying a person with special needs from receiving such public aid and assistance.
A trust is a legal entity in which legal title to assets (including money deposited in an account) are held by a trustee, who distributes funds on behalf of a specified beneficiary, according to the terms and conditions of a governing instrument, usually a Will or a written Trust Agreement. There are three types of Special Needs Trusts: First-party, self-settled trusts; Third party trusts; and Pooled trusts. As the name implies, first-party, self-settled trusts are created using the assets of the special needs individual. Third party trusts are created by and funded by someone other than the special needs individual, using the assets of the third-party. A Pooled Income Special Needs Trust is administered by a nonprofit association, and while a separate account is maintained for each special needs beneficiary, all accounts maintained by the nonprofit association are pooled for investment and management purposes.