Creating a Special Needs Trust helps preserve eligibility for public benefits such as Supplemental Security Income and Medicaid, while providing a supplemental income stream for the beneficiary. Properly drafted trusts reduce risk of misused funds, support quality of life, and offer peace of mind for families planning for lifelong care. Maryland-specific rules require careful drafting.
The primary benefit is preserved eligibility for essential supports while providing reliable supplemental resources. A coordinated plan supports transitions to adulthood or aging, with transparent financial oversight and a trusted governance framework that reduces uncertainty for families and caregivers.
Choosing our firm means working with attorneys who focus on clear planning, personal attention, and practical results. We translate complex legal concepts into understandable steps, tailor plans to fit your family, and coordinate with care managers, financial planners, and government programs to protect benefits and improve life outcomes.
We recommend periodic reviews to adapt to life changes, benefit rule updates, and funding needs. Updates may include amendments to the trust, beneficiary designations, or caregiver roles. Maintaining flexibility helps ensure the plan remains effective across transitions.
A Special Needs Trust is a legal arrangement that holds assets for a beneficiary with a disability without counting those assets toward eligibility for needs-based programs. The trust funds are used to provide supplemental support, paying for items and services that programs may not cover, while ensuring the beneficiary remains eligible for essential government assistance. Because the trust is governed by federal and state rules, proper drafting and ongoing administration help prevent accidental disqualification and ensure funds are used in accordance with the beneficiary’s goals.
The trustee manages distributions, maintains records, and communicates with family members and professionals. Many families choose a professional fiduciary or a trusted individual who understands the beneficiary’s needs. It’s important to confer with your attorney about legal requirements and potential conflicts. Clear documentation, defined powers, and regular reporting help prevent disputes and keep the plan aligned with the beneficiary’s evolving circumstances, especially during changes in care, residency, or family needs over time.
Yes. A properly drafted Special Needs Trust does not impact eligibility for most needs-based programs when used correctly. It provides a vehicle for supplementary funds without counting trust assets against asset limits used to determine benefits. Because the trust is governed by federal and state rules, proper drafting and ongoing administration help prevent accidental disqualification and ensure funds are used in accordance with the beneficiary’s goals. However, trustees must follow applicable rules and ensure distributions do not cause ineligibility. Consulting with a qualified attorney helps tailor the plan to your situation and keeps it compliant with the specific benefit programs involved.
A Special Needs Trust can be funded with inheritances, gifts, settlement proceeds, or life insurance proceeds designated for the trust. The source of funding affects tax planning and the trust’s tax status. Some funding sources may require special consideration to preserve benefits. Working with your attorney and financial advisor helps ensure the funding remains aligned with the overall plan and does not inadvertently reduce eligibility or create unintended tax consequences down the road.
A will directs how assets transfer after death, while a Special Needs Trust is designed to manage assets during life to support ongoing needs without disqualifying benefits. A trust continues to function after death to control remaining funds. A will is subject to probate and may trigger asset transfers; a properly structured trust operates outside the probate process and can specify how funds are used for the beneficiary’s lifetime.
Guardianship ensures someone can make personal and medical decisions when a beneficiary cannot. It is often coordinated with a Special Needs Trust to avoid duplicative authority and to protect the beneficiary’s rights while ensuring daily care. It’s important to integrate guardianship planning with trust provisions so trustees and guardians work together, reducing delays and confusion during transitions. This collaboration helps ensure seamless decision-making, ongoing support, and clear lines of responsibility.
The timeline depends on the complexity of the plan, funding sources, and the responsiveness of all parties. A straightforward trust can be prepared in a few weeks, while more complex arrangements may take longer. Starting with an early consultation helps streamline the process, but delays can occur if documentation is incomplete or beneficiary eligibility must be verified with agencies or other authorities in your jurisdiction.
Regular reviews ensure the trust reflects changes in law, care needs, and family circumstances. We recommend annual checks and after major life events. This keeps distributions in line with goals and maintains eligibility. We provide updated documents, revised funding plans, and clear instructions for notifying trustees and beneficiaries. Ongoing communication helps avoid misinterpretations and ensures everyone understands their roles and responsibilities over time.
Yes, most trusts involve ongoing administration fees to cover trustee services, accounting, and legal compliance. The exact cost depends on complexity and the level of oversight. We provide transparent estimates before starting and discuss optional services. Some families pay an annual flat fee or fee for asset management, while others are billed hourly for specialized tasks. We tailor arrangements to the scope of services and keep you informed of any changes.
Most Special Needs Trusts are irrevocable to preserve public benefits, but certain circumstances or planning strategies allow limited flexibility. Discuss options with your attorney to find the best balance for your family.
