Special needs trusts provide a stable funding source for eligible individuals while protecting eligibility for programs such as Medicaid and SSI. They help cover supplementary expenses—therapy, transportation, respite care—without risking benefit reductions. Properly drafted, a trust aligns care goals with long-term financial security for the beneficiary.
A well-structured plan preserves access to Medicaid, SSI, and other supports while enabling additional funds for care, therapies, and enrichment activities. It also helps families anticipate costs and avoid gaps in coverage.
Choosing our team means working with professionals who listen, tailor plans to family goals, and explain options clearly. We focus on practical solutions that support daily life while protecting essential benefits.
Ongoing management and periodic reviews to adjust distributions and keep records compliant.
A Special Needs Trust is a legal arrangement that holds assets for a beneficiary with disabilities without counting those assets toward means-tested public benefit programs, preserving eligibility while enabling supplemental support for medical care, housing, transportation, and activities that enhance quality of life. Trustee oversight ensures funds are used according to the trust terms and state law, helping avoid misuse and ensuring funds support daily needs, therapies, and enrichment opportunities within program rules.
A trust can be established by parents, guardians, relatives, or a court-appointed representative, often with advice from an attorney who specializes in disability planning. The settlor designates a trustee and directs how funds may be used. In many cases, the trust is funded during lifetime or at death through the estate, with careful timing to avoid benefits conflicts and to maximize long-term stability.
If a person with disabilities inherits assets outside a special needs trust, those assets can affect eligibility. A properly drafted SNT keeps assets out of the beneficiary’s direct ownership while still enabling supplemental supports. Missteps such as naming the beneficiary as a sole beneficiary or failing to fund the trust adequately can jeopardize benefits. Professional guidance helps ensure ongoing compliance.
Costs vary by complexity and funding, but most setups involve attorney fees for planning and drafting, plus potential court or filing fees. Some trusts include ongoing administration costs for trustees and account management. A clear fee structure helps families budget and avoid surprises while ensuring the trust remains compliant with state and federal rules.
The trustee administers the trust, makes distributions, and maintains records. They should understand disability planning, the beneficiary’s needs, and the law, and they may be a family member or a professional fiduciary. Selection involves trust experience, reliability, and communication. A well-chosen trustee helps ensure funds are used responsibly while protecting benefits and coordinating with care providers.
An ABLE account is a separate, tax-advantaged savings vehicle for disability-related expenses. It can complement a Special Needs Trust by allowing additional funds specifically for approved costs without compromising essential benefits. And while ABLE accounts are helpful, they have limits and rules, so coordination with the SNT is important to maximize total resources.
A trust is typically revocable during life (if set up that way) or irrevocable after funding. Changes can be made to provisions or beneficiaries, but some irrevocable trusts require court approval. As circumstances shift—income, health, or program rules—the terms can be amended within the boundaries of the trust and applicable law.
Ongoing maintenance includes annual trustee reports, asset updates, distributions tracking, and regular reviews of eligibility. Beneficiaries and guardians should stay informed, and beneficiaries’ needs should be reassessed as care plans evolve. Engaging professionals helps ensure compliance, timely updates, and alignment with changes in benefits programs.
Timeline varies by complexity and funding. Some plans are drafted in a few weeks, while final funding and long-term arrangements may take longer depending on assets and court involvement. A thoughtful timeline with milestones helps families plan around school, work, and care transitions.
In Trappe, MD, you can work with a trusted attorney to navigate state rules, eligibility considerations, and local resources that support disability planning. We guide initial consultations, document preparation, and coordination with guardianship and public benefits to build a practical plan.
