One of the most common tools used by attorneys in planning for public benefits is a special needs trust (“SNT”). Governmental benefits are designed to provide basic health care, food and shelter. As such, governmental benefits provide for only a meager existence to recipients.
An SNT is designed to provide additional needs and extras, such as vacations, that normal governmental benefits do not provide. An SNT can either be self-settled or third-party settled depending on the source of the funding. If you do nothing, and your loved one with a disability inherits your money:
- They will likely be disqualified from public benefits,
- They may lack the financial acuity to manage the funds