A properly drafted special needs trust helps preserve essential government benefits while providing funds for education, therapy, housing, and activities. It offers control over assets, reduces family friction, and plans for future healthcare needs, creating predictability for caregivers and enabling a higher quality of life.
Coordinating with Medicaid, SSI, and private resources helps maximize eligibility while ensuring supplementary funds reach the intended recipients without triggering penalties or delays and provides predictable access to services long-term.
Hatcher Legal, PLLC serves Durham and surrounding areas with a focus on estate planning and elder law. We help families shape trust documents, coordinate care, and ensure compliance with state and federal rules.
We conduct annual compliance checks, update beneficiaries or trustees as needed, and adjust the strategy to reflect benefit program changes as laws evolve.
A Special Needs Trust is a legal arrangement that holds assets for a beneficiary who receives means-tested government benefits, such as Medicaid or SSI. It ensures funds are available for supplemental needs without disqualifying essential benefits. The trust is managed by a named trustee and designed to supplement, not replace, public benefits. The trust is managed by a trustee who follows guidelines, ensuring distributions support quality of life while preserving eligibility.
A trustee can be a family member, a trusted friend, professional fiduciary, or a combination. The key is choosing someone reliable who understands financial duties, reporting, and the beneficiary’s best interests. We help clients evaluate strengths, plan backup trustees, and establish safeguards to handle conflicts, ensuring smooth administration.
If drafted correctly, a properly funded SNT can preserve eligibility for government benefits by keeping assets out of the beneficiary’s direct control. However, rules vary; state Medicaid, SSI, and program changes may affect payback and distributions. Consulting an attorney helps tailor the plan to your situation.
Funding options include transferring cash, life insurance policies, or other assets into the trust. For first-party trusts, ensure assets are properly titled and managed. Third-party funding typically comes from family gifts or estates and does not risk disqualifying benefits when structured correctly.
Costs include initial consultation, drafting, court filings if required, and ongoing administration. Some providers offer flat fees; others bill by time with itemized invoices. We provide transparent estimates and discuss anticipated expenses during the intake so you can plan for long-term care costs.
Beneficiary changes depend on the trust terms. Some trusts allow updates for new guardians or mandates, while others require amendments or new documents. We’ll explain options and help you implement changes while maintaining compliance and benefit eligibility.
First-party SNTs are funded with the beneficiary’s assets and may require Medicaid payback. Third-party SNTs come from family or friends and generally do not involve payback. Choosing between them depends on resources, goals, and benefit considerations; we tailor guidance to your family.
In first-party trusts, funds remaining may be used to pay back Medicaid, with any balance distributed per the trust terms. In other trusts, remaining assets may pass to contingent beneficiaries, according to the instrument, while preserving other public benefit rights.
Pooled trusts are administered by nonprofits and can be cost-effective for some families; they pool funds while preserving public benefits. We review eligibility, fees, and limitations to ensure a good fit for your loved one.
Timing varies with complexity, court involvement, and funding. Simple arrangements may take weeks; complex plans can take months. We provide a realistic timeline after the initial intake and keep you informed at every stage.
