Further, any creditors the disabled person may have would be able to make a claim against such assets. A special needs trust avoids the demands of benefits program by distributing its assets on behalf of the disabled beneficiary only to pay for dental services or therapy sessions that are not covered by Medicaid. A special needs trust could pay for educational services that are not covered by the state's vocational rehabilitation program. However, a special needs trust would not pay for medications that are already provided by Medicaid. The trust can be set up while the generous friend or family member is living, or it can be set up through a will.
Life insurance is a common way to fund special needs trusts.
If you wish to set up a special needs trust to benefit a disabled person, you should contact an expert in estate planing. Instead, contact your local bar association through for a trust lawyer referral. Site designed by Chris Keller . Internet services provided by BuffNET . This Web site includes images from Corel Mega Gallery which are protected by the copyright laws of the U.S., Canada and elsewhere.