SPECIAL NEEDS TRUST
Providing for a loved one with disabilities without affecting their benefits
If you have a child, sibling, or other loved one with a disability, a Special Needs Trust (also called a Supplemental Needs Trust) can be one of the most important legal tools available to you. It allows you to leave assets for their benefit without disqualifying them from essential government programs like Medicaid and Supplemental Security Income (SSI).
The Challenge of Leaving Assets to a Disabled Beneficiary
Many government benefit programs — including Medicaid and SSI — have strict asset and income limits. If a person with a disability inherits money or property directly, they may lose eligibility for these critical programs. A Special Needs Trust is specifically designed to hold assets for the benefit of a disabled individual while preserving their access to government assistance.
What a Special Needs Trust Can Cover
Trust funds can be used to supplement — not replace — government benefits, covering expenses such as:
- Education, training, and vocational programs
- Transportation and vehicle expenses
- Recreation, entertainment, and travel
- Personal care items and clothing
- Technology, computers, and communication devices
- Medical and dental expenses not covered by Medicaid
- Home furnishings and personal belongings
"Parents of children with special needs often worry about what will happen when they're gone. A properly structured Special Needs Trust gives them peace of mind that their child will be cared for — without losing the benefits they depend on."
— Bob Weber, Attorney at Law
Types of Special Needs Trusts
Third-Party Special Needs Trust
Funded with assets from someone other than the beneficiary — typically a parent, grandparent, or other family member. This is the most common type used in estate planning.
First-Party (Self-Settled) Special Needs Trust
Funded with the disabled individual's own assets — often used when a person receives a personal injury settlement or inheritance. Must include a Medicaid payback provision.
Pooled Special Needs Trust
Managed by a nonprofit organization that pools the assets of multiple beneficiaries for investment purposes while maintaining separate accounts for each individual.
Choosing a Trustee
Selecting the right trustee is one of the most important decisions in establishing a Special Needs Trust. The trustee must understand the rules governing government benefits, manage the trust assets responsibly, and act in the best interest of the beneficiary. Bob Weber can help you think through your options and structure the trust to protect your loved one for the long term.
LET'S TALK ABOUT YOUR SITUATION
The first step is up to you. Contact me today.