Special needs trusts (SNTs) provide critical support for the well-being and future of a loved one with disabilities. SNTs allow families to put a plan in place that provides supplemental resources while maintaining eligibility for government assistance programs. With the help of a special needs planning attorney, an SNT can be tailored to meet the unique needs of individuals and their families.

How an SNT Works

An SNT is a legal entity that holds and manages assets for the benefit of a person with special needs. The terms of the trust dictate how funds can be used to support the beneficiary.

• The trustee oversees the assets and approves distributions for the beneficiary's needs not covered by government benefits. This provides an extra layer of protection and oversight.
• SNTs supplement vital government benefits like Medicaid and SSI but do not replace them. The beneficiary maintains eligibility for these programs.
• SNTs can provide funds for medical care, therapy, recreation, transportation, education, and more to enhance quality of life.
• Remaining SNT funds may go towards paying back benefits upon the death of the beneficiary with first-party SNTs. Third-party SNTs can pass remaining funds to other beneficiaries.

Tailoring the Trust to Your Situation

Several factors determine the ideal type of SNT for a family:

• First vs. third party - The source of funds going into the trust dictates whether it is a first-party (self-settled) or third-party SNT. Each has different rules.
• Age of beneficiary - SNTs can benefit children with disabilities or adults in need of long-term care.
• Size of assets - The amount being placed into the trust impacts options like a pooled SNT.
• Family goals - Priority for quality of life, care instructions, and asset distribution after death.
• Timing - SNTs can be set up immediately or through estate plans that take effect later.

Funding the SNT

A special needs planning attorney can advise on funding options:

• Life insurance policies with the SNT as beneficiary
• Retirement accounts listing the SNT
• Existing assets like inheritances or lawsuit settlements
• Ongoing contributions from family members

The key is ensuring assets going into the trust do not exceed limits that would impact government benefits. An attorney helps structure funding properly.

Selecting a Trustee

The trustee handles trust administration and asset distribution. Key considerations include:

• Trustworthiness in managing assets solely for beneficiary
• Knowledge of government program rules
• Availability and willingness to serve as trustee
• Ability to separate personal feelings from trustee duties
• Skills in areas like money management, accounting, and investing

Often a trusted family member or friend takes the role. Corporate trustees are another option.

Why Work with a Special Needs Attorney

An attorney experienced in special needs planning provides critical guidance:

• Advising on the ideal trust type and provisions for your situation
• Drafting customized trust documents
• Working with other professionals like social workers and financial planners
• Assisting with proper trust funding and asset transfers
• Ensuring compliance with regulations to maintain benefits
• Providing ongoing administration support and guidance
• Educating successor trustees

Addressing Common Misconceptions

Some common myths may cause families to overlook the benefits of an SNT:

• SNTs are not just for the wealthy - Modest assets can make a big difference.
• SNTs do not lead to loss of government benefits when set up properly.
• SNT terms can be amended if circumstances change.
• SNTs should not rely on siblings for care.
• It's never too early to start planning.
• With guidance, SNTs are not overly complicated or costly.
• SNTs work for people of all ages with disabilities.

Take Control of the Future

Special needs trusts empower families to put a plan in place that cares for their loved one after they're gone. An experienced special needs planning attorney can create a customized SNT providing security, oversight, and supplemental resources to enhance quality of life. Contact our office to discuss how an SNT can help your family.