Tips for successfully managing special needs trusts

August 27, 2019

By Jaclyn Berry, Wealth Management

As health care expenses rise in the U.S., so do the challenges faced by individuals with disabilities and their families. Managing uncertainties that come with caring for a loved one with a disability can be financially burdensome.

When a person with a disability receives an inheritance or a settlement from a lawsuit or divorce, he or she may become ineligible for needs-based federal funding. This could make it nearly impossible for that individual to live comfortably while also getting the care he or she needs. Luckily, there is a solution for these cases: Special Needs Trusts (SNT). Special Needs Trusts are a specialized type of trust that are used in order to maintain a beneficiary’s important public benefits such as SSI or Medicaid.

As 20 million American families raise children with intellectual, developmental and physical disabilities, these trusts have become incredibly important in today’s realm of wealth management and financial planning. Unfortunately, many trust companies and banks tend to shy away from management of these trusts as they require a high level of service and attention. These services, however, are very important in an industry where the goal is to create peace of mind and ensure a legacy.

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