A Special Needs Trust (SNT) is a powerful tool for individuals with disabilities, ensuring they receive the care and support they need without losing eligibility for critical government benefits such as Medicaid or Supplemental Security Income (SSI). We assist families in setting up these trusts, which can protect assets while allowing beneficiaries to maintain access to necessary services. Whether you’re planning for a child with special needs or an adult with disabilities, a special needs trust ensures their quality of life is supported long-term without jeopardizing essential public benefits
First Party Special Needs Trusts (D4A Trusts)
These trusts are funded with assets that belong to the beneficiary, such as an inheritance or personal injury settlement. The trust ensures that the beneficiary can still qualify for government benefits like Medicaid and SSI. Upon the beneficiary’s death, any remaining funds in the trust may be used to pay back Medicaid for services provided, with the remainder going to other beneficiaries under certain circumstances. This trust is particularly useful when a person with disabilities receives a large sum of money or assets, but still needs to rely on government assistance for daily living and medical care.
Third Party Special Needs Trusts
These trusts are funded by someone other than the beneficiary, typically a parent, grandparent, or other family member. A third party trust allows the beneficiary to receive the financial benefits of the trust without losing eligibility for public benefits. Unlike a first-party trust, there are no Medicaid payback requirements upon the beneficiary’s death, and the remaining funds can be distributed to other family members or beneficiaries according to the trust’s terms. Third-party trusts are ideal for planning for a loved one’s future needs, as they protect their benefits while also ensuring financial support after the creator’s passing.