A Special Needs Trust ("SNT") is a trust established for a beneficiary withe mental or physical health issues and that receives governmental assistance. The purpose of the SNT is to provide for only those items that governmental benefits won't cover. This is why its referred to as a "special" needs trust. The governmental programs should cover basic needs (food, shelter, housing) but this trust can supplement with special benefits like companion care, toiletries, a television, etc. When crafting such a trust there are a host of tax and other issues that need to be addressed. This type of planning is also best done as part of a comprehensive overall estate and financial plan.
Subscribe to our email list to receive information on consumer webcasts and blogs, for practical legal information in simple English, delivered to your inbox. For more professional driven information, please visit Shenkman Law to subscribe.