By establishing a properly drafted special needs trust, families can preserve a loved one’s eligibility for Supplemental Security Income (SSI) and Medicaid while ensuring funds are available for supplemental supports. This legal tool balances protection with flexibility, reducing risk of disqualification due to lump-sum inheritances and unplanned expenses.
Coordinated funding ensures assets are available when needed, minimizes administrative delays, and supports predictable distributions that align with care plans, reducing the risk of gaps in services or benefits.
Hatcher Legal, PLLC brings local knowledge, clear communication, and a client-focused approach to complex planning. We collaborate with families, trustees, and care teams to translate goals into a durable plan.
We establish a plan for ongoing oversight, periodic reviews, and updates to reflect changes in care needs, benefit programs, or family circumstances.
A Special Needs Trust is a carefully drafted tool designed to preserve public benefits while enabling additional support. By placing assets in a trust rather than in the beneficiary’s name, funds can be used for services not covered by government programs, such as therapy, transportation, assistive technology, and housing support. Funding options vary, including third-party donations from family or friends and first-party funding when the beneficiary’s assets are involved. Payback rules may apply after death to reimburse state programs, so professional drafting helps balance care needs with benefit requirements.
A trustee can be a family member, friend, or a professional fiduciary. It is important that the person understands the beneficiary’s needs, maintains detailed records, and communicates clearly with caregivers and professionals. A prudent trustee avoids conflicts and ensures funds are used in accordance with the trust terms. Many families appoint co-trustees to share responsibilities and maintain oversight.
A properly drafted SNT should not cause automatic disqualification from benefits if funded and used correctly. Some distributions may affect SSI, while others are exempt or counted differently. Consultation with a benefits-focused attorney ensures distributions are made in compliance. In North Carolina, planners tailor strategies to state rules and federal guidelines.
A trust can be funded with cash, securities, or certain assets the beneficiary will acquire. The funding approach should align with the trust’s purpose, timing, and the beneficiary’s needs. Early funding often yields smoother administration. Family gifts, life insurance proceeds, and asset transfers are common funding sources.
Yes, many SNTs permit amendments or the appointment of successor trustees. It’s important to document changes formally and ensure amendments comply with benefit rules, preserving eligibility while adapting to evolving care needs. Working with an attorney ensures changes are valid, properly funded, and aligned with program requirements.
Costs vary by complexity, trust type, and location. Typical expenses include initial consultation, document drafting, funding assistance, and periodic reviews. Some professionals offer flat fees or bundled packages. Investing in planning upfront can reduce long-term costs by preventing improper distributions or benefit losses.
Planning timelines depend on readiness, asset availability, and responsiveness from involved parties. A typical process can take several weeks to a few months from intake to final execution. Delays may occur if funding sources require transfers or if all parties need to approve provisions.
Common documents include personal identification, financial statements, asset lists, beneficiary information, and any existing wills or trusts. Provisions describing care goals, anticipated expenses, and preferred trustees also help inform drafting. We also gather details on government programs and potential funding sources.
North Carolina law recognizes special needs planning as a valid tool within estate planning and Medicaid contexts. While the general approach is similar to other states, NC statutes and program rules require tailored drafting. A local attorney familiar with NC benefits can navigate these requirements effectively.
To get started with Hatcher Legal for Special Needs Trusts, contact our office for an initial consultation. We will review your goals, assets, and care needs, then outline options and a realistic timeline. From there, we guide you through drafting, funding, and final execution with ongoing support.
