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By preserving eligibility for Supplemental Security Income (SSI) and Medicaid, a Special Needs Trust can provide ongoing financial support without disqualifying the beneficiary from essential benefits. Properly drafted, the trust allows flexible distributions for education, therapy, housing, and enriching experiences, while protecting family assets from unintended spend-down.
A well-structured plan provides peace of mind to families, clarifying roles, responsibilities, and decision-making processes, reducing stress during life transitions.
Our team specializes in Estate Planning and Special Needs Planning, offering patient guidance, transparent pricing, and a collaborative approach that respects your time and priorities. We communicate clearly and coordinate with healthcare and financial professionals to keep your plan on track.
As circumstances change, we revise the plan, update funding strategies, and adjust governance to reflect new goals, beneficiary needs, and evolving laws.
A Special Needs Trust is a legal arrangement designed to hold assets for a beneficiary while preserving eligibility for means-tested government programs. It provides supplemental funds for daily living, therapy, education, and recreation without counting the assets toward the beneficiary’s countable resources. Most often, individuals with disabilities who rely on SSI or Medicaid benefit from this structure, as it helps safeguard ongoing supports while enabling growth and opportunity. Beneficiaries can experience improved quality of life when families plan thoughtfully and seek professional guidance.
Working with a qualified attorney helps ensure the trust complies with Maryland and federal rules, including payback requirements and distribution limitations. A lawyer helps tailor the trust to the beneficiary’s needs, coordinates funding, and coordinates with other professionals to avoid unintended consequences. While some forms exist, personalized guidance reduces risk and improves long-term outcomes.
A third‑party SNT is funded with assets belonging to someone other than the beneficiary and generally does not have payback requirements to government programs. A first‑party or self‑settled SNT is funded with the beneficiary’s own assets and typically involves payback demands to Medicaid after the beneficiary’s death. Each type serves different goals and funding sources.
Funding can come from family resources, life insurance proceeds, or other assets transferred to the trust. The method chosen affects eligibility considerations and tax implications. A knowledgeable attorney helps structure funding to preserve benefits while providing meaningful support.
A trusted individual or professional with financial and administrative capability is essential. The trustee manages distributions, records, and compliance. It’s common to appoint alternates and to establish a clear plan for incapacity to ensure uninterrupted administration.
A Special Needs Trust typically does not create taxable income for the beneficiary. However, the trust itself may have reporting requirements and tax considerations for the trust, its income, and distributions. Consulting a tax advisor helps ensure proper handling.
Yes. A properly drafted trust can cover housing, transportation, recreation, and other needs, subject to program rules. Distributions are planned to enhance quality of life while maintaining eligibility for public benefits.
If funds are exhausted, the beneficiary may rely on public benefits and other supports. Planning aims to maximize the duration of benefits by balancing distributions with ongoing needs and potential additional funding sources.
The timeline varies with complexity, funding sources, and client readiness. A typical process includes review, drafting, funding, and initial administration setup, often taking several weeks to a few months. Early preparation helps accelerate filing and implementation.
Bring information about the beneficiary’s health needs, current benefits, family goals, and any existing wills, powers of attorney, or guardianship documents. Details about assets, debts, and potential funding sources also help us tailor a practical plan.
