What legal instrument is best suited to manage disbursements to a client while meeting the requirements for public benefits?

The best legal instrument for managing disbursements to a client while meeting the requirements for public benefits is a special needs trust. This type of trust is specifically designed to benefit individuals with disabilities, ensuring they receive support without jeopardizing their eligibility for government assistance programs, such as Supplemental Security Income (SSI) or Medicaid.

A special needs trust allows a trustee to manage and distribute funds for the benefit of the individual without those assets being counted against the income and asset limits imposed by public benefit programs. This protection enables the client to receive necessary care and services that public benefits may not fully cover, such as transportation, education, and entertainment.

In contrast, although a trust fund can manage disbursements, it may not provide the same level of protection regarding public benefits eligibility. A living will outlines healthcare preferences rather than disbursement management, and a power of attorney grants someone the authority to manage another's financial affairs, but it does not specifically address the nuances of benefits protection for individuals with disabilities.