A properly crafted trust helps preserve eligibility for Medicaid, SSI, and other programs while funds are used to support daily needs, medical care, and enrichment activities. This planning also reduces family conflict by documenting distributions and appointing a capable trustee to manage assets with fiduciary care.
A thorough plan helps protect assets from unintended loss while ensuring funds flow to support essential needs and quality of life. This stability supports caregivers and specialists alike.
Hatcher Legal offers practical, thoughtful planning, thorough document drafting, and attentive client service to help families secure stability.
We assist with guardianship changes, asset changes, and beneficiary updates as needed.
A Special Needs Trust (SNT) is a legal tool that allows funds to be used for non-benefit items without reducing eligibility for programs like Medicaid or SSI. It is typically established by a parent, guardian, or trusted relative to protect a child with a disability. Distributions support education, therapy, and enrichment while preserving essential benefits. A well-drafted SNT clearly defines permissible uses and appoints a trustee to manage funds.
Anyone planning for a loved one with a disability who relies on government benefits should consider an SNT. A properly funded trust can protect assets while maintaining access to public supports, reducing worry about future financial instability as care needs evolve. Families often find peace of mind knowing plans are in place.
When properly funded and administered, an SNT does not automatically disqualify the beneficiary from benefits. The trust must be carefully drafted to fund only approved items and distributions. With careful planning, families can enhance quality of life without compromising eligibility for essential programs.
A trustee can be a family member, friend, or professional. The key requirements are willingness to act in the beneficiary’s best interests, maintain clear records, and follow the trust terms and applicable laws. A well-chosen trustee helps ensure responsible and compliant fund management.
Funding options include cash, life insurance gifts, and other assets. Strategic funding considers timing, tax implications, and future needs to ensure distributions support care while staying within program rules. Proper funding helps maximize benefits and minimize risk.
ABLE accounts and Special Needs Trusts serve related but different purposes. ABLE accounts provide savings for disability-related expenses without affecting some benefits, while SNTs protect eligibility and coordinate distributions. They can work together to support long-term care and independence.
A first-party SNT uses the beneficiary’s own funds, a third-party SNT uses assets from family members, and pooled trusts combine funds from multiple beneficiaries. Each structure has unique advantages and is chosen based on funding sources, goals, and eligibility considerations.
Planning timelines vary with complexity, but initial consultations typically take a few weeks to outline goals and gather information. Drafting and finalizing documents may extend over several weeks, with coordination for funding and trustee appointments. We aim to keep you informed at every step.
Ongoing maintenance includes annual reviews, updates for guardianship changes, asset adjustments, and reallocation of distributions as needs evolve. Regular check-ins help ensure the trust remains aligned with benefits rules and the beneficiary’s goals.
To start, contact our White Plains office to discuss goals, benefits, and timelines. Gather any existing documents, list relevant caregivers, and be prepared to share basic financial information. We provide a clear path forward and collaborative guidance.
