For those with special needs or disabilities, a court-ordered special needs trust can provide the opportunity for financial security. These trusts are ordered by a court in specific situations, such as when an inheritance is received, or a settlement is awarded due to a court proceeding. Knowing what this trust is and how it works is critical for ensuring the well-being of individuals with special needs.
Court-Ordered Special Needs Trust
A court-ordered special needs trust is a legal entity that allows assets to be placed into an account without impacting the individual’s eligibility for public benefits.
By placing money into this type of trust, it can be managed and used to provide financial support while still allowing the individual to maintain their qualification for public assistance programs such as Medicaid and Supplemental Security Income (SSI).
This ensures that the funds are used responsibly and in accordance with state laws.
A Trustee is Appointed by the Court
The court-ordered special needs trust typically has a trustee appointed by the court who will manage the funds within the trust. The trustee holds responsibility for making sure all the appropriate paperwork is completed, investments are made in accordance with any restrictions, distributions are made according to the trust’s terms, and taxes are paid on time.
The trustee also ensures that all expenses related to the beneficiary's care are taken into account.
Safe & Secure
The court-ordered special needs trust provides a safe and secure means of providing financial support for individuals with special needs or disabilities without risking their eligibility for public assistance programs. It is an important tool that can help ensure the well-being of those who may otherwise be unable to adequately provide for themselves.
We’re Here to Help
For more information about court-ordered special needs trusts, it is important to speak with an experienced professional from Legacy Enhancement Trust who specializes in special needs trusts. We will be able to provide guidance as to how this type of trust might benefit your particular situation.
Call Legacy Enhancement Trust today at (888) 988-5503 or fill out the online contact form to learn how we may assist you!