Special needs trusts help families preserve government benefits while enabling supplemental funds for housing, therapy, and enrichment activities. They minimize the risk of inadvertent disqualification due to asset changes, provide a structured successor arrangement, and support smoother transitions when caregivers are unavailable. Thoughtful planning reduces stress during life changes.
Enhanced asset protection helps families preserve eligibility while still allowing vital investments in care, therapy, and enrichment activities. This balance can reduce financial stress and support independent living opportunities for the beneficiary.
Choosing our firm means working with professionals who understand Maryland’s probate and disability rules. We focus on clarity, practical planning, and respectful communication, helping families navigate complex decisions with confidence.
We monitor changes in law and benefits programs to keep the plan compliant. Our team remains available for questions and adjustments as family needs evolve, making the trust a durable resource rather than a one-time document.
A special needs trust is a legal arrangement designed to supplement, not replace, government benefits. It holds assets for a beneficiary while preserving eligibility for programs like Medicaid and Supplemental Security Income. The trustee manages distributions to support daily living, education, and healthcare needs. This structure protects funding while maintaining access to essential benefits. The beneficiary should not personally own the trust assets; instead, a trustee administers funds according to the trust terms, ensuring ongoing care while protecting rights under state and federal programs. Regular reviews help keep the plan aligned with changing needs and regulations.
The trustee should be someone trusted and capable of handling fiduciary duties, financial management, and reporting. Depending on the complexity, families choose a family member, a professional fiduciary, or a trust company. Clear expectations and a backup plan reduce risk and ensure continuity if circumstances change.
Yes. A settlement or award can fund a first-party trust, but it may trigger payback obligations to Medicaid. A third-party trust avoids those paybacks because the assets belong to someone other than the beneficiary. Our team explains these implications and helps structure funds appropriately.
A properly funded trust protects eligibility for needs-based programs while allowing supplemental funds for care. It is important to coordinate with benefits administrators and ensure distributions do not inadvertently disqualify the beneficiary. The goal is stable access to services and predictable funding for supported living.
First-party trusts use the beneficiary’s assets and usually require Medicaid payback. Third-party trusts are funded by family or others and generally do not require payback. Each type serves different goals and planning needs; our team helps choose the right option for your situation.
Setting up a trust typically takes several weeks, depending on document complexity and funding. The process includes gathering information, drafting terms, obtaining signatures, and transferring assets. Timelines also depend on beneficiary needs and coordination with public benefit agencies.
Costs vary with complexity, funding, and ongoing administration. Typical expenses include attorney fees for drafting, trustee fees if applicable, and potential annual accounting. We provide transparent estimates upfront and discuss ways to manage costs while maintaining quality planning.
Upon the beneficiary’s death, payback obligations may apply for first-party trusts. For third-party trusts, remaining assets generally pass to successor beneficiaries. We explain impacts on benefits and ensure the trust terms address post-death distributions and legal requirements.
Maryland-specific planning is essential because state rules govern public benefits and estate planning. We tailor documents to Maryland statutes, coordinate with local agencies, and address state-specific requirements for guardianship, Medicaid, and disability services.
