A properly drafted Special Needs Trust helps ensure eligibility for needs-based benefits and protects assets that could otherwise affect programs like Medicaid and SSI. It also provides a structured way to cover medical care, housing, education, and daily living costs, while maintaining a focus on long-term quality of life.
A holistic plan protects benefits, supports critical care, and preserves family assets for future generations, while maintaining a clear management structure.
Hatcher Legal, PLLC brings a client-focused approach to estate planning and probate, combining clear explanations with practical strategies tailored to North Carolina law and local specifics in Bethlehem.
After funding, we finalize records and set a schedule for annual reviews, ensuring the plan remains aligned with goals and any regulatory updates.
A Special Needs Trust is a separate legal arrangement designed to supplement disability-related needs without undermining government program eligibility. It allows funds to cover essential goods and services that may not be fully funded by public programs, while preserving eligibility for Medicaid, SSI, and other supports. The trust is managed by a trustee who follows the terms of the agreement and state law. It’s essential to coordinate with your attorney to ensure distributions align with benefit guidelines and long-term goals.
Families with a member who uses Medicaid or Supplemental Security Income often benefit from an SNT. It can protect assets, preserve eligibility, and provide targeted support for daily living expenses. If there are concerns about assets, guardianship, or future care planning, consulting an attorney can help determine if an SNT fits your situation and budget.
Funding can come from gifts, family assets, or proceeds from life insurance, depending on the trust type. Some trusts allow the beneficiary’s own funds; others rely on third-party contributions. Coordination with tax planning and asset protection strategies is important to ensure the funding supports ongoing needs while complying with program rules.
A well-designed SNT aims to supplement, not replace, benefits and is structured to avoid disqualifying income or asset transfers. Distributions are carefully managed to remain within program guidelines. Ongoing planning helps anticipate changes in program rules, ensuring the beneficiary continues to receive essential supports.
The trustee can be a trusted family member, friend, or an institution such as a bank or non-profit entity. The important factor is financial responsibility and the ability to document decisions. Choosing a durable, communicative trustee helps ensure the trust is administered properly and beneficiaries’ needs are met.
Costs vary by complexity, asset size, and whether you use an outside trustee administrator. Typical fees include setup, annual administration, and potential asset management charges. Discuss fee structures with your attorney to understand ongoing expenses and plan within your budget.
Timeframes depend on the complexity of the trust, funding sources, and coordination with benefits agencies. A straightforward plan may take weeks, while more intricate arrangements can extend to several months. Starting with an initial consultation helps establish a realistic schedule and milestones.
Yes, most SNTs allow amendments or a successor trustee, but changes require legal review to ensure continued compliance with benefit rules. Discuss potential future needs with your attorney to plan for updates without compromising eligibility.
Common documents include the beneficiary’s and family’s identification, financial statements, lists of assets, and information about current benefits. Your attorney will provide a tailored checklist and help collect the necessary paperwork efficiently.
You can reach Hatcher Legal, PLLC by calling 984-265-7800 or visiting our Bethlehem, NC office. We respond promptly to inquiries and can arrange a confidential consultation. Or use the contact form on our site to schedule a meeting with our estate planning team.
