The Purpose and Uses of Special Needs Trusts


Special Needs Trusts pic

Special Needs Trusts

Based in Sacramento and serving clients across several Northern California counties, Carolyn M. Young offers a full range of services through her company Carolyn M. Young Fiduciary Services. Acting in roles such as executor, guardian, administrator, and trustee of trusts, Carolyn M. Young manages approximately $75 million in assets. One particular area of focus is on serving diverse clients requiring a special needs trust.

Trusts are set up to manage property, ranging from finances to real estate, for the benefit of another person. The trustee typically handles such responsibilities until the funds are depleted or the beneficiary dies. Special needs trusts fulfill the specific function of benefitting those lacking mental capacities to capably manage their own finances and are designed with the lifestyle and specific needs of the beneficiary in mind.

A specific aim of many special needs trusts is to ensure that government benefits received, from Medicaid to Supplemental Security Income, are used in ways intended.

Special needs trusts also supplement wills, through which inheritances are traditionally distributed to loved ones. Transferring large-lump-sum assets through wills can disqualify beneficiaries from government assistance programs. As the trustee has full management of the special needs trust funds, excluding the beneficiary from such responsibilities, trust assets are not considered to negate federal program eligibility.

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