What is special need trusts and their benefits in Arizona?
Planning and creating financial security is a priority when you care for a loved one who has a disability or functional need. How can you provide financial support for someone with a disability or functional need without affecting the eligibility of any government benefits?
In Arizona, one solid solution is a special needs trust.
What is a special need trust?
A special needs believe in Arizona (also known as a Supplemental Needs Trust) is an Estate Planning tool that allows someone with a disability, functional need, or other disabilities to have assets while still receiving Supplemental Security Income and/or Medicaid.
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Need-based government benefits come with income and asset limitations. Receiving financial gifts or assets can reduce eligibility. If your assets are placed in a special needs trust for your child, your financial support will continue to be available for her for the rest of her life.
Benefits of trust for special needs
In Arizona, you can make someone's life easier and provide peace of mind by setting up a special needs trust. These trusts guarantee that someone with functional needs will get the financial support they require throughout their life, regardless of whether you are there or not.
Here are some key benefits of special need trusts:
- You can still get government benefits based on your loved one's needs.
- Sometimes, the assets or funds of the trust are not accessible to creditors or litigants.
- A trustee or financial advisor can invest trust funds.
- You might be able to control who inherits the trust after the beneficiary's death.
- Trusts offer protection from financial abuse because trustees have a fiduciary obligation to act in the best interests of beneficiaries.