When it comes to providing for a disabled loved one, there are many considerations to take into account to ensure they receive the care they need without compromising their eligibility for vital government benefits. One key tool in achieving this balance is a Special Needs Trust (SNT). An SNT allows a person with a disability to have an account that can pay for supplemental needs while still qualifying for programs like Medicaid and Supplemental Security Income (SSI).
Special Needs Trusts, also known as Supplemental Needs Trusts, are carefully crafted legal arrangements. They are designed to hold assets for the benefit of an individual with disabilities, without disqualifying them from receiving public assistance. This trust can be used to pay for expenses that government benefits do not cover, such as personal care attendants, out-of-pocket medical expenses, and other life-enhancing expenditures.
There are primarily two types of Special Needs Trusts:
The reasons for establishing an SNT are numerous, but they revolve around the beneficiary’s quality of life. Here are a few:
Selecting a trustee is one of the most important decisions in creating an SNT. A trustee manages the trust’s assets and makes all decisions related to disbursements. The trustee should be someone who is not only trustworthy but also has an understanding of the beneficiary’s needs and the complexities of government benefit programs.
Establishing an SNT requires careful planning and adherence to legal standards. Here's an overview of the process:
When planning for an SNT, it’s important to consider:
A Special Needs Trust is a vital tool for ensuring the well-being of a disabled loved one without jeopardizing their access to public benefits. While the process may seem complex, with the right guidance and planning, you can secure a stable financial future for those who need it most.
If you’re considering setting up a Special Needs Trust, Donohue, O’Connell & Riley can provide the expertise and support necessary to navigate these delicate matters. Contact us to discuss how we can tailor an SNT to fit the unique needs of your family and provide the peace of mind that comes from knowing your loved one is cared for.