Establishing a special needs trust protects assets while allowing continued access to vital public benefits, such as Medicaid and Supplemental Security Income. Without a trust, small inheritances or windfalls can impact eligibility or create gaps in coverage. A properly drafted trust coordinates government programs with family goals, ensuring long-term security and independence.
A well-structured plan prioritizes preserving eligibility for programs like Medicaid, SSI, and other supports. By separating supplemental funds from essential benefits, families safeguard ongoing access to critical services while still addressing additional care needs.
Hatcher Legal, PLLC brings collaborative estate planning and elder law experience to special needs planning. We prioritize clear communication, transparent pricing, and practical solutions designed to protect eligibility for benefits while securing meaningful supports for the beneficiary.
We conduct annual reviews to adjust distributions, revisit funding plans, and reflect changes in health, finances, or laws. Regular updates help maintain compliance and continuity of support for the beneficiary over time.
A special needs trust is a vehicle designed to supplement, not replace, government benefits for a person with a disability. It allows funds to be used for items such as therapies, equipment, travel, and extracurricular activities without disqualifying essential programs like Medicaid. The trustee manages distributions in alignment with the beneficiary’s care plan and legal requirements. By keeping funds separate from public assistance, families preserve eligibility while enhancing quality of life.
A trustee can be a family member, a trusted friend, or a professional fiduciary. The key is selecting someone who understands budgeting, reporting, and the beneficiary’s needs. Consider factors like reliability, availability, financial literacy, and impartiality. A well-chosen trustee reduces risk, improves continuity of care, and supports smooth administration over time.
Medicaid and SSI eligibility depends on asset and income limits. A properly drafted special needs trust prevents countable assets from disrupting benefits while still providing supplemental care. However, some trust types have different rules. An experienced attorney helps tailor the structure to your family’s situation and ensures compliance with current regulations.
Funding strategies include transferring assets into the trust, using cash residencies, or identifying non- countable resources. Coordinating with tax planning, life insurance, and investments helps maximize long-term support. Our approach emphasizes practical funding steps and ongoing oversight to ensure resources supplement care rather than create eligibility issues.
We recommend annual or biennial reviews, especially after life events such as births, deaths, marriages, or changes in government rules. Regular checks help adjust distributions, modify trustees, and respond to evolving care needs. Proactive review minimizes surprises and keeps the plan aligned with goals.
Costs vary by complexity, including drafting, funding, and ongoing administration. Transparent fee structures, flat rates for initial setup, and clear hourly rates for updates help families plan. We aim to provide value by delivering robust protections, clear guidance, and predictable budgeting for long-term planning.
While some trusts are flexible, significant changes may require amendments or restatement. A custodial approach to governance allows adaptation for shifts in health, finances, or law. Consulting with an attorney ensures changes remain compliant and protective of the beneficiary’s interests.
ABLE accounts offer tax-advantaged savings for disability-related expenses and can complement a special needs trust. Coordinating ABLE with a trust helps preserve benefits while funding additional needs. We review eligibility, contribution rules, and distribution guidelines to integrate both tools effectively.
If the grantor dies, trust provisions determine remaining assets and access for the beneficiary. Depending on the document, funds may be used to pay final expenses, provide last-through-care distributions, or transfer to another eligible beneficiary. A well-drafted plan minimizes disputes and ensures continuity of support.
Ask about the attorney’s experience with Maryland benefit rules, fiduciary responsibilities, and funding strategies. Request a clear explanation of the cost structure, timelines, and ongoing review practices. Understanding the process helps you make informed decisions and feel confident in the plan you create.
