A Special Needs Trust (SNT) is a trust set up to provide for the care of a disabled person. The trustee can use the assets in the trust to pay for supplemental care and services not covered by government benefits. A special needs trust in Arizona can be an important part of financial planning for a disabled family member.
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Here are some of the key benefits of establishing a Special Needs Trust:
1. Protects government benefits: One of the biggest advantages of an SNT is that it can protect your loved one's eligibility for means-tested government benefits like Medicaid and SSI. Without an SNT, any assets held in your loved one's name could count against them when determining eligibility for these programs.
2. Manages financial resources: An SNT can help you manage your loved one's finances in a way that is in their best interests. This includes things like investing funds to grow the trust assets, paying bills and expenses on behalf of the beneficiary, and making distributions to cover their needs.
3. Provides peace of mind: Knowing that you have a plan in place to provide for your loved one's future needs can offer peace of mind for both you and your family. An SNT gives you control over how and when assets will be used to benefit your loved one, providing security and stability during uncertain times.
If you’re thinking about setting up an SNT, it’s important to talk to a qualified attorney or financial advisor who can help you navigate the process and make sure that everything is done correctly.