Choosing the right Special Needs Trust can stabilize a family’s finances while safeguarding essential services. Benefits include preserving eligibility for SSI and Medicaid, enabling supplemental supports, and protecting assets from misuse. A well-crafted trust provides clarity on how funds are used for healthcare, education, housing, and daily living, reducing the risk of unintended loss of benefits.
Improved continuity of care: a well-designed plan ensures steady access to services, therapies, and housing while safeguarding eligibility for government programs.
Choosing our firm means working with attorneys who understand the balance between care needs and public benefit rules. We emphasize practical, straightforward planning that aligns with your family’s values, budgets, and timelines.
Regular reviews ensure the trust remains compliant with benefits programs, tax rules, and changing personal circumstances, with updates as needed.
A Special Needs Trust (SNT) is a legal arrangement that holds assets for a beneficiary with a disability to supplement, not replace, government benefits. It is designed to pay for items and services that benefits do not fully cover, such as therapies, equipment, transportation, or recreational activities. The trust must be drafted carefully to avoid disqualifying the beneficiary from programs like SSI or Medicaid. When properly funded and administered, SNTs provide flexible support while preserving essential public assistance.
The trustee should be someone responsible, financially literate, and able to follow complex rules. This may be a family member, a trusted friend, or a professional fiduciary. We help you evaluate candidates, set up guardrails, and create guidelines for prudence, reporting, and conflict resolution to ensure smooth administration.
A correctly drafted SNT can preserve SSI, Medicaid, and other benefits by keeping the trust assets separate from the beneficiary’s countable resources. This allows funds to support care without reducing program eligibility. Distributions must be for approved needs and paid by the trustee, not directly to the beneficiary unless authorized, to prevent loss of eligibility.
A first-party SNT uses assets belonging to the beneficiary, often funded by a settlement or inheritance, and may have payback provisions to state programs after death. A third-party SNT uses assets from family or friends, with no payback and typically simpler rules, while still preserving benefits for the beneficiary.
Cash, securities, life insurance proceeds, retirement accounts, and gifts can fund an SNT, provided the transfer complies with program rules. Funding should be planned to optimize benefit preservation and long-term care.
Most SNTs are irrevocable once established, especially first-party ones, to protect benefits and ensure long-term care funding. Some provisions may allow limited amendments under specific circumstances. Consultation with an attorney helps identify options and safeguards based on your plan.
Upon death, funds are used according to the trust terms and may involve payback provisions to Medicaid in some cases. A successor trustee handles final distributions, tax matters, and closure, ensuring orderly administration.
Setting up an SNT typically takes several weeks to months, depending on complexity, funding, and coordination with other documents. Early planning helps speed progress, while careful drafting ensures compliance with rules. We provide a clear timeline and keep you informed at each stage.
While not legally required in all cases, working with an experienced attorney helps ensure the trust meets federal and state requirements. An attorney can tailor provisions, coordinate with benefits agencies, and prevent costly gaps in care. We guide you through the process with plain-language explanations.
Costs vary, but typical fees cover initial consultation, drafting, and review of trust documents. Ongoing administration fees may apply for professional trustees; we can discuss affordable options and potential funding strategies. Transparent pricing helps families plan for long-term care.
