A special needs trust (SNT) protects assets for the benefit of an individual with disabilities (called a trust beneficiary) who is approved for or receiving public benefits, such as Supplemental Security Income (SSI) or Medicaid, that limit the amount of assets a person may own. The trust property is not counted as an asset. A trustee manages the trust property for the trust beneficiary who by law is not permitted to control the trust property.
There are two types of SNTs: first party/self-settled and third party. A first party/self-settled SNT is funded with the assets of the individual with disabilities and has a Medicaid payback. A third party SNT is funded with assets owned by people other than the individual with disabilities, such as a parent, and does not have a Medicaid payback.
Finding Answers in The Voice® and Loud and Clear blog:
- What is a special needs trust anyway? October 2020
- Two Different Types of Special Needs Trusts September 2017
- Your Special Needs Trust (“SNT”) Defined January 2013
- Special Needs Trusts and Trust Protectors October 2022
- How to Assess What’s Important to Families with Individuals with Special Needs in a New City February 2022
- Special Needs Beneficiaries Can Be Explicitly Included in Estate Planning September 2020
- Special Needs Estate Planning for Families with Special Needs: Top 10 Action Steps February 2020
- Considerations Selecting a Family Trustee September 2018
- When Should a Special Needs Trust Be Updated? July 2018
- Trust Protectors for Special Needs Trusts August 2017
- Achieving a Better Life Experience (ABLE) – How to Open an ABLE Account March 2017
- The “Special Needs Trust Fairness Act” is Finally Law: Individuals with Disabilities Can Now Establish Their Own Trusts February 2017
- Special Needs Trusts and Federal Student Aid June 2016
- Strategies for Funding a Special Needs Trust March 2016
- Trust Advisory Committees Can Guide Trustee Decisions January 2016
- The ABLE Act – A New Tool for Special Needs Planning April 2015
- Child Support for an Adult Child with Disabilities December 2014
- Letter of Intent July 2013
- Updating Your Special Needs Trust – Begin with a Self Review January 2013
- What Are You Waiting For? April 2012
- Using Pooled Trusts In Estate Planning January 2012
- The Other Special Need: Planning for Those with Severe Mental Illness February 2011
- Letter of Intent June 2009
- The Military’s Survivor Benefit Plan and the Disabled Child June 2009
- Planning for Multiple Generations January 2009
- Planning Your Estate: When a “Simple Will” Won’t Suffice August 2008
- Fixing a Flawed Special Needs Estate Plan January 2008
- Third Party Special Needs Trusts January 2008
- Questions About Setting Up a Special Needs Trust January 2008
- A Reader’s Question About Pooled Trusts December 2007
- Veterans and Special Needs Trusts November 2007