A properly designed Special Needs Trust protects assets while preserving eligibility for Medicaid, SSI, and related supports. In North Carolina, a well-structured trust can reduce probate complexity, facilitate smoother guardianship transitions, and ensure ongoing access to care and enrichment activities without compromising essential benefits for the beneficiary.
A tailored plan reflects the beneficiary’s preferences, family dynamics, and available resources. Customized documents ensure clear distributions, appropriate trustee powers, and a coherent method for adjusting plans as needs evolve.
Choosing our firm means working with attorneys who prioritize practical, compassionate care and precise compliance. We bring experience in estate planning, elder law, and disability planning to craft thoughtful, durable strategies.
Our team offers ongoing guidance, responds to beneficiary changes, and helps with annual reporting and administrative tasks, keeping the plan resilient through life transitions.
A Special Needs Trust (SNT) is designed to supplement government benefits rather than replace them. In NC, an SNT allows funds to be used for approved items and services that enhance daily living while preserving eligibility for Medicaid, SSI, and related supports. By separating assets from the beneficiary’s spendable resources, the trust protects benefits while providing discretionary funds for needs.
A parent, grandparent, guardian, or the beneficiary’s court-appointed representative may establish an SNT, depending on funding sources and eligibility rules. In many cases, families create third-party SNTs through their estate plan, while in other scenarios a first-party SNT is funded with the beneficiary’s own assets under strict regulatory oversight.
Funding sources include monetary gifts, inheritance, or specific assets set aside for care. It is essential to structure funding consistent with benefit rules to avoid impacting eligibility. A well-planned funding strategy supports care needs without compromising ongoing supports or future opportunities.
A correctly drafted SNT protects assets while allowing approved expenditures. It does not count toward the beneficiary’s resource limits for Medicaid eligibility when set up and administered properly. However, improper use or self-dealing can affect eligibility, underscoring the importance of professional guidance.
Trustees can be family members, a friend, or a professional fiduciary. The right choice balances trust administration, financial oversight, and sensitivity to the beneficiary’s needs. We help clients evaluate candidates, establish duties, and ensure effective management.
Common documents include the trust agreement, beneficiary designation forms, trustee appointment, funding instructions, and any related guardianship or power of attorney documents. We guide clients through the document set and ensure consistency across all planning instruments.
