Virginia Special Needs Trust
Understanding this form
A Special Needs Trust is a legal document created by parents to secure additional care and support for a child with disabilities. This trust ensures that the child's needs for maintenance, education, and comfort are met over and above any government benefits the child may receive. Unlike a standard trust, the Special Needs Trust is specifically designed to protect the beneficiary's eligibility for public assistance while providing for their needs. It outlines how assets should be managed and distributed for the benefit of the child.
Key parts of this document
- Name and beneficiaries of the trust
- Provisions for distributions, including support, medical care, and education
- Trustee powers and responsibilities
- Process for appointing a successor trustee
- Guidelines for trust accountings and beneficiary notifications
When to use this document
This form is essential when parents want to establish a financial framework that enables their child with disabilities to receive additional support without jeopardizing their eligibility for government benefits. Common situations for using this form include preparing for a child's future long-term care and ensuring that they have access to necessary resources for education and personal care.
Who this form is for
- Parents or guardians of a child with physical or developmental disabilities
- Individuals responsible for the financial planning of a child who may rely on public assistance
- Family members looking to secure a trust that benefits a child with special needs
How to complete this form
- Identify the parties involved: List the parents as co-trustees and designate a successor trustee.
- Specify the beneficiaries: Clearly state the name of the child who will benefit from the trust.
- Outline the intended distributions: Detail how funds will be allocated for support, medical care, and education.
- Establish trustee powers: Define what powers the trustee will have regarding the management of the trust assets.
- Provide any special instructions: Include directions for managing the trust according to the unique needs of the beneficiary.
Does this form need to be notarized?
This form usually doesn’t need to be notarized. However, local laws or specific transactions may require it. Our online notarization service, powered by Notarize, lets you complete it remotely through a secure video session, available 24/7.
Common mistakes to avoid
- Failing to clearly define the beneficiaries and their needs
- Not appointing a reliable successor trustee
- Overlooking state-specific regulations regarding trust management
Advantages of online completion
- Convenience of downloading and printing the form at any time
- Editable fields that allow customization to meet specific needs
- Access to attorney-drafted templates ensuring legal compliance
Form popularity
FAQ
Special Needs Trusts can also pay for home and vehicle maintenance along with a variety of other items like a vacation, a computer, electronic equipment, educational expenses, and ongoing monthly bills such as phone, cable, and internet services.
To establish a Third Party Special Needs Trust, the family member needs to sign the trust document and then transfer the assets to the Trustee. The trust document is provided by an attorney who provides legal representation and writes all the necessary documents.
The person serving as trustee of the special needs trust can usually pay for anything for the person with special needs, as long as the purchase is not against public policy or illegal and does not violate the terms of the trust.
As trustee, you can create multiple goals for an individual trust, allowing you to customize investment needs for each financial objective. For example, this means that you can invest funds for short-term and long-term needs at varying risk levels.
Special needs trusts pay for comforts and luxuries -- "special needs" -- that could not be paid for by public assistance funds. This means that if money from the trust is used for food or shelter costs on a regular basis or distributed directly to the beneficiary, such payments will count as income to the beneficiary.
The child cannot accumulate more than $2,000 in assets or risk losing important and life-sustaining public assistance benefits. For that reason, a special needs trust must to be set up carefully and by an experienced special needs planning attorney. Regardless, once you set up the trust, it must be funded.
In general, trust structures are intended to provide a legal way to title and hold assets to be used to support one or more beneficiaries. Special needs trusts are similar and are used to benefit someone who has physical or mental disabilities.
Failure to set up a special needs trust might affect them, even if not as much as another person who receives, say, SSI and Medicaid. Even someone receiving Medicare will have some effect from having a higher income.
