Special Needs Trusts help families preserve eligibility for SSI and Medicaid while providing funds for care and quality of life. They prevent accidental disqualification from essential programs by keeping assets in a protective trust structure. Effective planning reduces the risk of disputes, delays, and unintended losses, enabling stable support for a loved one’s future.
Holistic care planning ensures the trust aligns with healthcare, education, housing, and community supports, reducing gaps in service and improving overall quality of life for the beneficiary.
Our firm combines local knowledge with broad planning experience to create customized trusts that reflect your goals and circumstances, while prioritizing clear communication and diligent compliance.
Regular reviews help adjust to changed laws, beneficiary needs, and life events, ensuring continued protection and alignment with goals.
A special needs trust is a legal arrangement that holds assets for a beneficiary with a disability without counting those assets toward public benefit eligibility. The trust allows funds to supplement basic needs like medical care, education, and activities while preserving access to essential programs. Assets are managed by a trustee who follows the trust terms and ensures distributions support care and quality of life.
A trustee can be a family member, friend, or a professional fiduciary. The most important factor is reliability and knowledge of disability needs and program rules. Trustees must handle distributions prudently and maintain accurate records. Many families choose a professional trustee to ensure impartial oversight and consistent administration.
A first party trust uses assets belonging to the beneficiary funding the trust and often includes a payback provision to government programs after death. A third party trust uses assets from another person and generally does not include a payback requirement. Both types preserve benefits while enabling supplemental support.
Costs vary with complexity and funding. Initial consultations, drafting, and fiduciary setup are typical, with ongoing administration fees if using a professional trustee. We provide transparent estimates and tailor arrangements to fit family budgets while prioritizing benefit protection.
Funding can come from cash, investments, life insurance policies, or assets from a family member. The timing and method depend on the type of trust and the beneficiary’s circumstances. We guide asset transfers, beneficiary designations, and funding schedules to ensure readiness when needed.
Yes, most trusts can be amended if needed to reflect changes in law or beneficiary circumstances. The process typically requires a formal amendment or restated trust. We assist with evaluating options, preparing amendments, and ensuring continued compliance and protection.
Planning time varies with complexity and funding. A simple setup may take weeks, while comprehensive planning with funding and trustee appointments can take several months. Beginning early allows time for coordination with benefits programs and document updates.
A properly drafted trust generally does not pay income tax at the beneficiary level, but the trust itself may have tax reporting obligations. Distributions to the beneficiary are typically tax neutral. We discuss potential tax implications and strategies to optimize outcomes while preserving benefits.
Many special needs trusts include a payback provision that requires amounts remaining in the trust to be used for reimbursement of state programs after the beneficiary dies. If the trust is funded by someone else, remaining assets may pass to other beneficiaries per the trust terms.
While it is possible to create a trust without an attorney, guidance from a knowledgeable attorney helps ensure compliance with Maryland law and program rules. We offer comprehensive support from assessment to funding with careful attention to detail to protect benefits and meet family goals.
