B) The trust seeks to keep the disabled child eligible for Social Security disability benefits.
A special needs trust attempts to insulate trust assets from governmental claims, and at the same time,keep the disabled child eligible for public benefits, such as Medicaid and Social Security disabilitybenefits.
No part of the trust corpus can be used to replace the disabled child’s public benefits.
The trust assets are excluded from a beneficiary’s gross estate.
Special needs trusts are often established while the child’s parents are still alive. The parent can be the grantor of the trust.
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