SNTs have become the planning tool of choice for many families of dependents with special needs. It can provide for professional money management of assets. Finally, it provides funds for the care of the individual with special needs, without disqualifying him or her for government benefits. Select guardianship with care. If your loved one is capable of making many decisions, guardianship may unnecessarily restrict his or her freedom.
Many people prefer using a power of attorney to manage financial affairs when feasible.
Also, note that there are levels of guardianship in many states. A Special Needs Trust by itself is of no value without money. Since assets cannot be removed from the trust except for the specific benefit of the beneficiary, it is a common practice to do minimum funding during the parent's lifetime. Life insurance can be purchased on the parent, with the trust named as beneficiary. The trust is also made the beneficiary of bequests in a will, annuities, and qualified plans.