A Colorado Special Needs Trust is a trust created for the benefit of an individual with disabilities, who is receiving means-tested benefits. The purpose of the trust is to improve the quality of life for that individual without disqualifying them from certain benefits.
The beneficiary of the trust can receive funds or property from various sources, including loved ones, in order to cover their medical expenses, housing costs, personal care, transportation and other expenses.
One important feature of this type of trust is that the beneficiary does not own the assets in the trust and therefore does not have control over how they are used. This helps them maintain eligibility for government assistance programs (SSI and Medicaid) by ensuring that they do not have too many assets in their own name.
A trustee will be appointed to ensure that funds are used as intended and according to the guidelines set forth by the government programs with which they are trying to comply.
While the CSNT is a type of trust that can be created by anyone, it was designed primarily for parents to help their adult children who have disabilities and will not be able to work and provide for themselves over the long term. The CSNT can make payments to supplement the needs of a beneficiary, but it cannot be used to replace government benefits such as Medicaid or Social Security.
The CSNT can also be used as a way to protect inheritance money from going directly into a person’s bank account. If you are interested in using this option for your child or loved one who has special needs, please contact us at [phone number].
Assets placed in a special needs trust are excluded from consideration when applying for public benefits, because they are not owned by the beneficiary. Instead, the assets are managed by a trustee who controls how they can be used. If a special needs trust is correctly drafted and administered, the beneficiary will still be eligible for public assistance.
One of the most important responsibilities of a trustee is to ensure that assets in a special needs trust do not influence eligibility for public benefits. In addition to managing finances, trustees also distribute funds in accordance with the beneficiary’s needs and wishes. A trustee may also pay bills on behalf of the beneficiary so that funds can be used more effectively.
There are two types of special needs trusts: first-party and third-party trusts. Each has its own rules about how it will be administered, who can be named as a beneficiary, and more. Additionally, there are different federal and state laws that apply depending on what type of trust you have.
CSNTs allow you to hold your assets in a trust on behalf of someone with special needs, while also allowing that person to continue receiving government benefits such as Supplemental Security Income (SSI) or Medicaid. It’s important that CSNTs are properly drafted, so your loved one can continue getting their benefits without any issues.
The Colorado Special Needs Trust is a non-profit organization that serves children and adults with disabilities by providing assistance to those who would otherwise be unable to obtain the extra care and services required for those with special needs. The trust was created by an act of Congress in 1999, and its purpose is to provide financial assistance to the beneficiaries of the trust (i.e., children and adults with disabilities) through a trust fund established by the state or federal government. The trust is intended to supplement, but not replace, other funding sources such as Medicaid, Medicare, or Social Security Disability Insurance (SSDI).
The Colorado Special Needs Trust provides resources to help promote self-sufficiency among people with disabilities, as well as their families. Our mission is “to improve access to quality care and services for people with disabilities through education, advocacy, and collaboration.”
The SNT makes it possible for the beneficiary to receive all of his/her benefits and have money to pay for additional needs. A SNT is a revocable trust, which means you can change your mind any time you want. You can also cancel or change the trust after the beneficiary’s death. The trust will be administered by a trustee or trustees, who are named in the trust document.