A properly drafted special needs trust protects assets while allowing the beneficiary to receive government benefits. It provides funds for supplemental services, therapy, and recreation without disqualifying programs like Medicaid or Supplemental Security Income. With careful administration, families gain predictability, minimize conflict, and maintain long-term financial security.
One key benefit is improved security of benefits for the disabled beneficiary. A well-structured trust prevents spend-downs that could jeopardize eligibility while offering funds for essential services, therapies, and enrichment activities.
Hatcher Legal, PLLC brings a collaborative, client-focused approach to special needs planning. We work with families across North Carolina to design tailored trusts, coordinate with care providers, and navigate Medicaid and benefit rules. Our goal is to support you with clear guidance and steady, compassionate service.
As life changes—marriages, relocations, or evolving care needs—we update trustees, distributions, and funding strategies. Regular reassessment keeps the plan aligned with current rules and ensures the beneficiary continues to receive appropriate support.
A Special Needs Trust is a legally structured account designed to supplement, not replace, government benefits. It holds assets for the beneficiary and pays for goods and services that benefits do not cover, while preserving eligibility for programs such as Medicaid and SSI when properly funded and managed.\n\nA trustee manages distributions according to the trust terms, maintaining benefits while helping the beneficiary live as independently as possible. Proper funding, clear rules, and regular reviews are essential to avoid unintended consequences and ensure long-term care.
Funding sources for a special needs trust can include cash, assets from family, life insurance policies, or settlement proceeds. In some cases, non-cash assets can be converted to cash for distributions while maintaining benefit eligibility, with attention to timing.\n\nA plan may start with modest funding and grow over time. Working with an attorney ensures funding complies with rules and does not create disqualifications. Trustees should coordinate distributions to meet needs without triggering penalties.
A trustee can be a family member, a trusted friend, or a professional entity such as a bank or trust company. The key is reliability, fiduciary responsibility, and the ability to manage assets prudently while communicating with you and caregivers.\nWe help identify suitable trustees, considering experience with disability planning, accessibility, and willingness to provide regular updates. Legal requirements may demand a professional administrator in some situations. Such choices ensure continuity and compliance when family members are unavailable.
First-party SNT uses the beneficiary’s own assets to fund the trust. This can affect eligibility and Medicaid risk if not carefully structured. Third-party SNT uses assets provided by family or friends, avoiding those risks and providing greater flexibility. Both require precise drafting and ongoing stewardship.\n\nBoth types require careful planning and ongoing oversight to maintain benefits and meet care goals. Our firm can help determine the best option given your family’s assets, needs, and long-term planning priorities.
Most special needs trusts include provisions that allow amendments, especially for non-discretionary elements or to appoint new trustees. The ability to modify depends on the trust’s terms and applicable state and federal rules.\n\nLife changes, including guardianship and benefit updates, may necessitate revisions. Working with an attorney ensures any changes comply with program requirements and preserve the beneficiary’s rights and protections.
Funding a special needs trust can come from cash gifts, inheritance, settlements, or life insurance proceeds. Some assets must be carefully retitled to avoid affecting eligibility. An experienced advisor can guide compliant funding strategies.\nWe work with families to map the funding plan, coordinate with financial institutions, and ensure transfers occur in a tax- and program-friendly manner. This approach helps protect benefits while providing needed support over time.
Costs vary by complexity, the assets involved, and whether ongoing administration is required. Typical items include document drafting, initial setup, trustee coordination, and periodic reviews. A clear estimate helps you plan.\nDuring our engagement, we discuss pricing structure, potential hourly rates, and flat-fee options for specific tasks. You receive written quotes and updates if plans change. We aim for transparent, reasonable fees with a clear scope.
If drafted properly, a special needs trust should not automatically disqualify Medicaid or SSI. The trust’s terms, funding sources, and distribution rules determine impact. Planning with a knowledgeable attorney helps avoid inadvertent ineligibility.\nWe review each case to ensure trust design preserves benefits while providing needed supports. Ongoing oversight and timely updates help align with changes in programs and beneficiary needs.
Time to complete a special needs trust varies with complexity, funding plan, and client responsiveness. A simple trust can be ready in a few weeks, while a comprehensive plan with funding may take several months.\nWe provide realistic timelines during the initial consultation and keep you informed as milestones are met. Delays often relate to asset gathering, beneficiary decisions, or funding arrangements. We communicate clearly to manage expectations.
Bring any current estate planning documents, lists of assets, and information about government benefits. Include guardianship papers, existing trusts or wills, and details about caregivers and dependents. This helps us assess needs and tailor a plan.\nIf possible, bring questions and a list of priorities. We translate complex terms into practical steps and outline expected timelines, costs, and next steps. Having documents ready speeds up the process and ensures you get precise guidance.
