Simple explanations for the use of special needs trusts are
laid out here in simple language. The author makes clear that this is not a
book of legal advice, but an introduction to the role of the SNT and the roles
of the trustee and beneficiary. If you are the parent of an adult with special
needs, or the adult son or daughter of elderly parent, the SNT is set up for
their financial and/or physical care and you would be the “trustmaker” or “grantor.”
The money can then be used for anything the beneficiary needs; food, health
care, clothing, furniture, travel expenses, etc.
When it comes to using the money, there is wide leeway on
what it can be spent on. However the trustee has fiduciary responsibility for
the money, and he/she can get in trouble if the money is misspent or
mismanaged. But mistakes can be made, especially when SSI payments are in
question. The special needs beneficiary can have SSI payments reduced or
Section 8 rent increased if the beneficiary has income. Caregiver expenses may
be deductible, but in some cases they are not.
This book isn’t a legal guide, but it’s great if you are
going to be the trustee of a SNT and want an overview of what you can expect.
In an age when people are living longer than they did 30 years ago, the issue
is more important than ever.
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