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How does a special needs trust work in Virginia?

A SNT is a legal arrangement that ensures assets are held in an account and used to support a person living with a disability. Assets placed in the SNT can include money, a life insurance policy, or a court settlement.

What is the benefit of a special needs trust in Virginia?

Supporting quality of life. SNT assets can only be used as a supplement to government programs and to support quality of life for the disabled person. For example, the proceeds can be used for activities and services like education, recreation, custom living arrangements, companionship, etc.

What are the disadvantages of a special needs trust?

What are the disadvantages of a special needs trust? While special needs trusts offer substantial benefits, some potential disadvantages exist. These include administrative complexity, ongoing legal expenses, and restrictions on how funds can be used for the beneficiary.

What is the point of a special needs trust?

A Special Needs Trust (SNT) allows for a disabled person to maintain his or her eligibility for public assistance benefits, despite having assets that would otherwise make the person ineligible for those benefits. There are two types of SNTs: First Party and Third Party funded.

Does the trustee of a special needs trust get paid?

Compensation Unless the trust agreement states otherwise, trustees are usually entitled to compensation for their services. Compensation is usually set forth in state law. If a corporate trustee is serving, it usually receives a fixed amount, based upon the value of the trust estate.