Special needs trusts provide a reliable framework to manage assets for a disabled beneficiary while maintaining eligibility for Supplemental Security Income (SSI) and Medicaid. By separating personal funds from the beneficiary’s government benefits, families can cover education, healthcare, housing, and enrichment activities without risking program disqualification.
A comprehensive plan carefully balances assets to protect eligibility for essential programs while providing supplementary resources for daily living. This balance reduces the risk of ineligibility changes and ensures that critical supports remain available when they are most needed.
Hatcher Legal, PLLC brings thoughtful, accessible guidance to complex estate planning and probate matters. We partner with clients to design Special Needs Trusts that reflect values, protect benefits, and anticipate changing needs within the local legal landscape.
Ongoing management includes regular reviews, adjustment for changes in laws, and coordination with care teams. This ongoing support helps sustain the beneficiary’s quality of life while preserving eligibility for essential benefits.
A special needs trust is a legal tool designed to supplement, not replace, government benefits for a person with a disability. It holds assets outside the beneficiary’s direct ownership, helping cover items and experiences that improve daily life. This approach preserves eligibility while expanding supportive options for the beneficiary. It is essential to consult an experienced attorney to tailor terms to your family’s situation.
Funding a special needs trust involves transferring assets from the grantor or other sources into the trust, following specific permissible methods. Acceptable funding may include cash, investments, or life insurance proceeds directed to the trust. Properly structured funding avoids disqualifying outcomes and ensures the beneficiary receives intended benefits and protections.
A trustee should be someone responsible, with financial literacy and a trustworthy demeanor. The role includes managing assets, distributing funds for approved needs, and communicating with family and professionals. Clear fiduciary duties, reporting requirements, and contingency plans help prevent conflicts and ensure stable administration.
Yes. A correctly drafted special needs trust is designed to preserve eligibility for SSI and Medicaid by keeping assets within set limits. The trust distributes resources in a way that enhances quality of life without converting the beneficiary’s status as a recipient of benefits, thereby reducing risk of benefit disruption.
A pooled trust combines funds from multiple beneficiaries under a single, centralized administration, while a privately funded trust is created for a single beneficiary. Pooled trusts can offer cost efficiencies and professional management, but private trusts provide greater control over distributions and may better suit individualized goals and needs.
Reviews should occur at least annually or when significant life events occur, such as changes in health, guardianship, or benefits rules. Regular updates ensure the trust remains aligned with current laws, family circumstances, and the beneficiary’s evolving needs, preventing outdated provisions from causing issues.
A special needs trust can support lifelong care by funding medical services, therapies, transportation, and enrichment activities. While maintaining eligibility for benefits, a well-planned trust adapts to changing needs and ensures the beneficiary has access to resources that improve daily life without risking program disqualification.
If the grantor passes away, the trust terms determine how remaining assets are distributed. Often, funds are used to cover final expenses and ensure ongoing care while preserving beneficiary benefits. Proper planning includes coordinating with guardians, beneficiaries, and benefit programs to avoid unintended consequences.
