The main benefit is preserving government benefits while providing supplemental funds for care, education, therapies, and enrichment activities. These trusts prevent disqualified assets from impacting eligibility and offer a managed way to plan for future needs. For families in New Market, early planning reduces risk and uncertainty.
A holistic approach links disability planning with estate and tax considerations, reducing redundancies and ensuring assets are used to maximize quality of life without jeopardizing benefits.
Our firm specializes in estate planning and disability planning, offering clear explanations, thorough document preparation, and hands-on support from start to finish. We strive to make complex planning accessible and focused on your family’s unique needs.
We handle updates for life events, adjust terms as regulations change, and maintain documentation for tax and benefit compliance.
A Special Needs Trust is designed to supplement, not substitute, government benefits for a person with a disability. It holds assets separately and pays for items and services that benefits do not cover, while preserving eligibility for public programs. Not all disabilities require an SNT, but many do.
Generally, an SNT protects benefits by keeping assets out of the beneficiary’s name. However, improper drafting or funding can affect eligibility. With careful planning, you can enhance support without disrupting access to essential programs.
Medicaid payback requires that, after the beneficiary dies, remaining trust assets may be used to reimburse Medicaid for benefits provided. The specifics depend on trust type and funding. Proper planning helps manage payback while still benefiting loved ones.
First-party SNTs use the beneficiary’s assets and typically include payback rules. Third-party SNTs are funded by family or others and usually do not require payback. Each structure has distinct funding, control, and tax implications that must be weighed.
Funding can come from gifts, inheritances, or assets transferred during the beneficiary’s lifetime. Management involves trustees who distribute funds for supplemental needs, track expenses, and ensure compliance with benefit programs and tax reporting requirements.
A trustworthy trustee should be financially literate, capable of handling complex distributions, and committed to open communication. Common choices include family members, professionals, or a blended approach. Consider availability, location, and willingness to serve.
Trusts should be reviewed at least annually or after major life events. Changes in benefits, guardianship, or housing may require updates to distributions, trustee appointments, or funding strategies to keep the plan effective.
Yes, a well-designed SNT can fund education, therapies, vocational training, and enrichment activities that enhance quality of life while maintaining eligibility for public benefits.
Costs include initial drafting, periodic updates, and potential trustee fees. While fees vary, investing in a comprehensive plan often reduces risk and long-term expenses associated with mismanagement or benefit disqualification.
To begin, contact our office to schedule a consultation. We will gather information, explain available options, and outline a path to draft, fund, and administer a Special Needs Trust tailored to your family’s needs.
