A Simple Guide to Understanding Special Needs Trusts

A Special Needs Trust (SNT) is a crucial estate planning tool designed to provide financial security for individuals with disabilities while preserving their eligibility for government assistance programs such as Medicaid and Supplemental Security Income (SSI). Here are some key features of a Special Needs Trust:

1. Preservation of Government Benefits

An SNT allows a person with disabilities to receive financial support without jeopardizing their eligibility for essential public benefits.

2. Controlled Asset Management

The trust is managed by a trustee, who ensures that funds are used to enhance the beneficiary’s quality of life without violating benefit eligibility rules.

3. Coverage of Supplemental Expenses

Funds from an SNT can be used for various expenses, including medical care, education, transportation, and recreational activities, improving the beneficiary’s overall well-being.

4. Different Types of SNTs

There are first-party (funded with the beneficiary’s own assets) and third-party (funded by someone else, such as a parent or grandparent) special needs trusts, each with unique rules and benefits.

5. Legal Protection

An SNT helps safeguard assets for the beneficiary’s future, preventing mismanagement or misuse by well-intentioned but unqualified individuals.

Taking Action

Setting up a Special Needs Trust requires careful planning and legal guidance. Working with an estate planning attorney ensures compliance with federal and state regulations while maximizing benefits for the beneficiary. A well-structured SNT can provide peace of mind to families, knowing that their loved one’s needs will be met even after they are no longer around.

Contact Bayside Law today to set up your consultation! (251) 716-8318 or kayla@baysidelawllc.com