Special Needs Trusts provide a safe way to preserve essential government benefits for loved ones while enabling use of funds for quality of life, education, housing, and care. By planning ahead, families avoid disqualifying assets, reduce financial strain on caregivers, and create a clear path for future generations.
Preserves eligibility for government benefits while enabling flexible funding for care, education, and enrichment, helping to sustain quality of life for the beneficiary.
Hatcher Legal, PLLC serves North Carolina clients with practical guidance in estate planning and probate. We focus on clear communication, respectful support, and durable documents that adapt to changing health, finances, and family dynamics.
An annual review helps confirm continued eligibility, reassess distributions, and adjust for changes in health or income over time.
A special needs trust is a legal tool designed to hold assets for a beneficiary so that government benefits remain available to cover basic needs. It provides flexibility for care, education, and enrichment while preserving eligibility. Distributions from the trust are planned to supplement, not replace, what public programs provide. A well-drafted trust reduces risk of benefit loss, coordinates with caregivers, and helps families manage long-term care with greater confidence.
A special needs trust is appropriate for a beneficiary who relies on needs-based benefits and has assets that could affect eligibility if not managed within a trust. It can be funded by family, a second spouse, or a legal guardian. This planning helps ensure continuity of care and allows the beneficiary to participate in meaningful activities while keeping essential supports intact.
A special needs trust interacts with government programs by preserving eligibility for Medicaid and SSI, provided distributions are appropriately structured and reported. It avoids asset counts that could jeopardize benefits while still enabling supplemental goods and services. Coordination with the trust, the beneficiary, and program rules is essential to maintain compliance and maximize the value of disability benefits.
First-party and third-party special needs trusts differ in funding sources and asset ownership. A first-party trust uses the beneficiary’s own assets, which can have Medicaid payback implications after death. A third-party trust is funded by relatives and survives the beneficiary’s lifetime. Choosing the right structure depends on goals, family assets, and long-term care plans; our lawyers explain options and help you implement the best fit.
The trustee should be someone who understands the beneficiary’s needs, maintains impartiality, and can manage finances responsibly. Often a family member, professional fiduciary, or trusted advisor is selected, with alternates named in case the primary is unavailable. We provide guidance on fiduciary duties, conflicts of interest, and appointment processes to help you choose a reliable partner.
Costs include legal fees for drafting, periodic reviews, and any trustee administration costs. Some fees may be one-time, while others recur; we outline a transparent plan and discuss funding options during the initial consultation. We help families understand potential expenses, potential reimbursements, and how these costs fit into the overall estate plan.
The timeline for establishing a special needs trust varies with complexity, court involvement, and funding. A typical process may take a few weeks to a couple of months, depending on document preparation and asset transfers. We work to keep you informed and minimize delays by coordinating deadlines and required signatures.
Yes. A trust can be amended or updated when family circumstances change or new benefits rules arise. We draft flexible provisions and provide guidance on modifying the document as needed. However, major changes may require legal steps or new documents; we explain options and timing.
After the beneficiary’s death, a first-party trust may have payback obligations to Medicaid; a third-party trust generally remains for the heirs or for designated purposes. Provisions specify how remaining funds are used. Proper planning includes clear designation of remainder beneficiaries and any reporting requirements.
Starting the process typically begins with a consultation to review goals, assets, and programs. We then outline options, draft documents, and guide you through signing and funding steps. Contact our Surf City office to schedule a meeting and begin building a plan tailored to your family.
