A special needs trust is a special type of living trust, created for persons with special needs as a way to supplement any benefits they may receive from government programs. A well-drafted special needs trust will allow the beneficiary to receive government benefits while still receiving funds from the trust.

A spendthrift trust is another type of trust agreement, used when the settlor determines that taking care of a loved one may include protecting him or her from his or her own propensity to spend money unwisely (hence the “spendthrift” name). Such a trust gives the trustee sole discretion to distribute assets from the trust to the beneficiary when the trustee believes it’s prudent to do so, rather than giving the beneficiary the legal right to demand trust assets whenever he or she wants to.

If you would like to learn more, please contact one of our experienced estate planning attorneys.

Kenneth E. Tiews
Michael J. TerBeek
MIchael A. Stroup