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| Overview | Self-Settled & Third Party Trusts |
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| Selecting the Right Trustee | Assisting the Trustee |
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| Trust Distributions |
Self-Settled and Third Party Special Needs Trusts
Self-Settled Trusts
Self-settled trusts (also known as d4a trusts) are designed to assist
individuals who have received a personal injury settlement – and
who may lose their government benefits as a result.
The personal injury settlement increases a disabled person’s assets,
thereby disqualifying that individual from continuing government assistance
and future assistance. A self-settled trust can prevent this situation,
enabling the injured person to retain both the settlement and their benefits.
Third Party Special Needs Trusts
Third party special needs trusts can enable families and friends to make
financial contributions for the benefit of a person with a disability
without affecting that individual’s government benefits. Not only
can family and friends make gifts to third party special needs trusts
throughout the life of that disabled individual, but they can also name
that individual’s special needs trust as a beneficiary of their
will.
copyright © Kearns & Kearns 2005