Special Needs Trusts protect assets while allowing continued access to essential benefits. They provide funds for supplemental needs, minimize the risk of disqualifying spendable resources, and simplify future transitions for caregivers. A properly drafted trust offers financial security and peace of mind for families in Carrboro and across North Carolina.
Integrated planning connects estate planning with disability services, ensuring continuity of care and reducing gaps between generations.
Our team brings practical knowledge of North Carolina law, a collaborative approach, and a focus on long-term stability for families.
We schedule regular check-ins to reflect changes in laws, family circumstances, and care requirements, keeping plans current.
A Special Needs Trust is a dedicated vehicle designed to supplement, not replace, public benefits. It holds assets to fund services and accommodations that public programs do not fully cover, while preserving eligibility and reducing financial risk for the beneficiary. These trusts are tailored to long-term care goals and family values.
Public benefits typically set limits on countable resources. Properly designed SNTs enable supplemental expenditures without depleting assets needed to qualify for programs like Medicaid or SSI. Careful planning ensures distributions address gaps in coverage while maintaining program eligibility for ongoing support.
Trustees should be someone trustworthy, capable of handling financial duties, and familiar with the beneficiary’s needs. Often a family member, a professional fiduciary, or a trust company is chosen. The trustee’s responsibilities include prudent management, reporting, and timely distributions according to the trust terms.
Funds such as cash, investments, or life insurance proceeds may be placed in the trust, depending on the grantor’s goals and the governing laws. Some assets may need conversion or careful structuring to avoid unintended effects on benefits while supporting care.
ABLE accounts can work alongside Special Needs Trusts to provide additional, flexible funding for disability-related expenses. It is important to coordinate contributions, qualified expenses, and beneficiary designation to prevent unintended impact on eligibility.
A first-party SNT is funded with the beneficiary’s own assets and may have payback provisions, while a third-party SNT is funded with assets from someone other than the beneficiary and typically has no payback. Each type has distinct planning and tax considerations.
Administration timelines vary with the complexity of the trust and coordination with benefit programs. Some matters conclude within months, while others require ongoing oversight and periodic reviews that extend over many years as needs evolve.
Guardianship is not always required to establish an SNT, but it may influence planning decisions. An attorney can explain how guardianship interacts with trust terms and public benefits, ensuring the plan remains aligned with the beneficiary’s care needs.
A revocable Special Needs Trust limits protection for benefits and may not be suitable for long-term planning. Many families prefer irrevocable structures to safeguard eligibility and asset protection, though some flexibility can be built in through carefully drafted provisions.
To begin, contact our Carrboro office to schedule a consultation. We will review your family’s goals, benefits, and assets, then outline a tailored plan. You can bring documents, ask questions, and learn how the process moves from planning to funding and governance.
