A properly drafted trust can protect assets, safeguard eligibility for Supplemental Security Income and Medicaid, and empower caregivers to plan for future needs. It also helps avoid probate delays, reduces the risk of unintended disqualification from benefits, and offers a stable funding source for education, housing, healthcare, and daily support.
A coordinated plan reduces last-minute changes and preserves continuity of care for beneficiaries, supporting regular medical appointments, therapies, and essential services.
Our team combines deep knowledge of Maryland estate planning with practical experience in disability supports and public benefits. We focus on clarity, accessibility, and outcomes that respect your family’s values and financial realities.
Ongoing administration includes regular statements, tax reporting, beneficiary communications, and periodic updates to reflect changes in care needs or finances to maintain compliance and trust integrity.
A special needs trust is a protective vehicle that holds assets for a person with a disability and is designed to supplement, not replace, government benefits. It provides flexibility to cover essential needs while preserving eligibility for programs like Medicaid and SSI. The trust must be structured to avoid disqualifying the beneficiary and to address payback rules when needed.
A trustee is the person or entity responsible for managing trust assets and distributions. Ideal trustees are reliable, organized, and comfortable with financial matters; they must follow the trust terms and communicate with beneficiaries and professionals. Family members are common choices, but many clients also select a professional fiduciary or a trust company to ensure impartial administration and continuity if family circumstances change.
A properly drafted special needs trust typically preserves eligibility for Medicaid and SSI by excluding the trust assets from the beneficiary’s count, or by complying with payback rules. This helps ensure ongoing benefits while allowing supplemental support. However, some trusts require careful design and annual reporting to avoid inadvertent ineligibility, so professional guidance is helpful.
Costs vary by complexity and location, but establishing a comprehensive special needs trust generally involves attorney fees, plan setup, and occasional administrative charges. Some families also incur ongoing trustee or accounting costs; budgeting for these expenses helps ensure the plan remains functional without unexpected financial strain.
Funding a trust with your own assets can be straightforward when the trust is third-party funded. If assets belong to the beneficiary, this is called a first-party or self-funded trust and requires careful payback considerations. Consult with a professional to determine the best funding method and to structure transfers correctly.
Regular reviews help ensure the trust stays aligned with changing laws, care needs, and family goals. Many plans benefit from annual check-ins and event-driven updates after major life changes. This ongoing attention helps maintain eligibility, optimize distributions, and adapt to new programs or medical needs.
First-party trusts are funded with the beneficiary’s assets and often subject to Medicaid payback. Third-party trusts are funded by others and generally do not require payback. Understanding these distinctions helps families choose the right structure to protect benefits and provide for the beneficiary’s needs across generations.
Alternatives include guardianship arrangements, payees for SSA benefits, or ABLE accounts in appropriate cases. Each option has trade-offs in control, eligibility, and cost, so a careful comparison helps families select the most suitable path for long-term support.
Common documents include identification papers, birth certificates, medical records, financial statements, lists of assets, and any existing wills or trusts. A current list of benefits, guardians, and powers of attorney helps ensure the plan reflects real circumstances and facilitates smoother implementation.
The timeline varies by complexity, but initial planning can take a few weeks to a few months depending on document drafting, funding, and sign-off. Ongoing updates and funding arrangements may require periodic meetings, especially after life events or rule changes.
