If you or a loved one have special needs, you may wonder what your options are for establishing a trust to help protect your assets. One type of trust available to those with special needs is a third-party special needs trust. Read on to learn more about who can qualify for a third-party special needs trust.
Eligibility for a Third-Party Special Needs Trust
As the name suggests, the leading eligibility requirement that must be met for someone to establish a third-party special needs trust is that the individual must have special needs.
In addition, the individual with special needs may not use any of their own property to fund the trust. This type of trust must be funded by someone other than the individual for whom the benefits are intended.
The funds added to a third-party special needs trust may not be used for things that would render the person with special needs ineligible for benefits, i.e. cash gifts. However, the funds may be used for other purposes, such as:
- Luxury products
- Personal services
- Professional fees
- Computer equipment
- Pet supplies
Keep in mind that the individual for whom the trust is set up never actually owns the property and doesn’t have direct access to the assets within the trust.
Benefits of a Third-Party Special Needs Trust
People with special needs become ineligible for government assistance if they own too many assets over a particular value. Government benefits are critical to the well-being of people with special needs because they help with very basic necessities such as caregiving and medical treatment.
If You Need Help With a Special Needs Trust, We’re Here
Our skilled team has helped many others establish their financial futures and we may be able to help you too. Don’t hesitate to reach out with your questions right away to learn more about what we can do to help you.
Call Legacy Enhancement Trust today at (888) 988-5503 to learn how we may assist you!