A Special Needs Trust preserves eligibility for government programs while providing funds for education, medical care, housing, and enrichment opportunities. Properly drafted trusts prevent disqualification due to assets, minimize probate exposure, and enable caregivers to manage funds in the beneficiary’s best interests. When implemented early, families gain peace of mind.
A unified plan simplifies tracking and coordinating assets, ensuring funds are available for critical supports while safeguarding eligibility for public programs.
Our firm brings committed support to North Carolina families, with a focus on practical planning, open communication, and documents designed to withstand life changes. We tailor strategies to your goals while ensuring compliance with state and federal requirements.
Regular updates, beneficiary reviews, and coordination with government programs ensure continued compliance and relevance as life events unfold.
A Special Needs Trust is a separate arrangement that holds assets for a beneficiary with disabilities and uses distributions to supplement benefits rather than replace them. It protects eligibility for programs like Medicaid and SSI while funding supplemental supports. There are different types of SNTs, including first-party, third-party, and pooled options. An attorney can help choose the structure that best fits your funding, goals, and state requirements.
A trustee should be someone trustworthy with financial acumen and a willingness to follow detailed rules. Common choices include family members, a professional fiduciary, or a trusted attorney. Selecting a successor trustee is also important to ensure continuity.
Funding a Special Needs Trust typically comes from gifts, assets transferred by family members, or third-party contributions. Some trusts may be funded with the beneficiary’s own assets. The funding source influences eligibility rules, taxes, and the timing of distributions for supplemental needs. A knowledgeable attorney helps coordinate funding so benefits stay intact, while resources are available to meet care needs, therapy, and daily living expenses.
Yes. A properly drafted SNT preserves essential government benefits by isolating funds that supplement care rather than count toward asset thresholds. Distributions for qualified expenses can help cover therapies, equipment, and experiences not fully funded by benefits, but improper use or miscoordination can risk benefits, so professional guidance is important.
North Carolina law governs how trusts are created, administered, and taxed. State rules affect guardianship, court oversight, and reporting requirements for trusts serving beneficiaries with disabilities. An NC-licensed attorney can ensure documents comply with local statutes, align with welfare programs, and adapt to ongoing changes in state regulations.
Commonly needed documents include the trust instrument, letters of guardianship or power of attorney, funding documentation, and a detailed plan for distributions and trustee duties. We also prepare beneficiary letters, tax forms, and contact information for trustees and professionals to facilitate smooth administration.
Yes. You can have a will in addition to a Special Needs Trust. The trust handles assets intended for supplemental care, while the will covers other estate wishes. Coordination between documents ensures consistent guidance, asset transfers, and clear instructions for trustees and guardians.
Processing times vary by complexity and funding, but planning often takes several weeks to a few months from initial consult to execution. Delays can occur if funding sources or guardianship needs require court involvement. Early scheduling and clear information help keep timelines predictable.
When the beneficiary passes away, the trust provisions determine distributions and any payback obligations, if applicable. In first-party trusts, remaining funds may be used to repay government programs before final asset distribution. In most cases, remaining trust assets pass to named remainder beneficiaries or are used for approved charitable or family purposes per the trust terms.
To start with Hatcher Legal, PLLC, contact our Durham office to schedule a consultation. We will review your family’s needs, explain options, and begin drafting the appropriate Special Needs Trust documents. You can reach us by phone at 984-265-7800 or via our website to arrange a meeting with our estate planning team.
