Basics of A Special Needs Trust

Dealing with a disability can be a challenge in a number of ways, from navigating the health-related specifics of the condition to contending with the financial ramifications of having and living with a disability. There are a number of ways to confront a disability, from a financial standpoint, including gaining access to the best possible medical insurance to saving in anticipation of health-related costs to an Arizona special needs trust.

When it comes to planning future-forward for a special needs individual, access to the best possible medical insurance and the establishment of a special needs trust may be two of the most important things you can do. This is, in part, because both allow a special needs individual to have a more secure future in which there will be always be resources available to take care of medical needs as well as the expenses associated with daily living.

Understanding the basics of a special needs trust may help to determine if this is the best avenue for a special needs person. To start, this type of account allows a person – generally a family member or close caretaker – to funnel financial resources into an account in which the special needs person is the beneficiary. The primary idea behind the account is to have a place from which the beneficiary can draw on the resources of the account without compromising any insurances and/or stipends received from the government. The benefits are often important to the individual and necessary in order to sustain themselves financial throughout both childhood and into the adult years.

The special needs trust can be used for a wide array of purposes, from paying rent or mortgage to buying groceries and a number of needs in between. The monies stay in the account and are drawn from them by the administrator or the beneficiary for purpose specifically set forth for the individual upon opening the account. There are rules for reasons that this money can be used, but they are specific and often are outlined for the person setting up the account, so it is clear. Adhering to said rules is important to ensure that the monies are used for the special needs individual only and that the special needs trust is not compromised, causing the beneficiary to lose other benefits in the process. Understanding the basic tenets of this financial resource ensure that it is in place for as long as the individual is in need of it.

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