Burgess & Christensen is committed to securing positive outcomes for those facing legal challenges in Social Security Disability and adult guardianship matters. Our team has worked hard to earn the trust of many families across Georgia.
Today, we want to discuss how a Special Needs Trust (SNT) can help protect the future of individuals with disabilities. Our aim is to show you how an SNT can ensure that your loved one remains eligible for government benefits while obtaining extra financial support for their needs.
What is a Special Needs Trust?
A Special Needs Trust—sometimes called a Supplemental Needs Trust—is a legal tool allowing individuals with disabilities to access additional funds without losing access to essential government programs such as Medicaid and Supplemental Security Income (SSI).
There are two main types of SNTs:
● First-Party Trusts: These are funded with the beneficiary’s own money, which might come from a personal injury settlement or an inheritance.
● Third-Party Trusts: These trusts are funded by someone other than the beneficiary, often a parent or grandparent.
Both types serve the same goal: they provide extra financial support for needs that go beyond basic living expenses while keeping important benefits intact.
Benefits of a Special Needs Trust
Government assistance programs like Medicaid and SSI require beneficiaries to meet strict financial guidelines. Even a small surplus of assets could disqualify a person from receiving these benefits. A properly set-up SNT keeps assets out of the calculations used to determine eligibility. This means that money held in the trust will not count against the limits set by the government, ensuring that your loved one continues to receive the support they depend on.
Improving Quality of Life
A Special Needs Trust can cover many extra costs that government benefits do not pay for. For example, an SNT can be used to help pay for:
● Education and Vocational Training: Funds may support specialized tutoring, skill-building classes, or training programs.
● Recreation: Money in the trust can pay for activities such as art classes, sports programs, or accessible travel experiences.
● Medical and Dental Care: Certain therapies, treatments, or dental procedures not covered by Medicaid may be funded through the trust.
● Personal Care and Support Services: This includes hiring in-home aides, arranging respite care, or providing companion services.
● Assistive Technology: Funds can go toward communication devices, adaptive software, or modifications to make a home more accessible.
● Transportation: Whether buying or modifying a vehicle, or paying for specialized transportation services, the trust can help cover these costs.
● Other Supplemental Needs: Money can also be used for entertainment or other services that improve daily life.
These funds allow families to provide a higher quality of life for their loved ones while keeping them eligible for crucial government benefits.
Asset Protection and Management
One of the key roles of a Special Needs Trust is to protect the assets placed in it. When a trustee is appointed, they manage the funds responsibly on behalf of the beneficiary. This oversight helps prevent misuse of the funds and protects the money from creditors or lawsuits. The trustee acts as a safeguard, ensuring that the funds are used solely in the best interest of the person with disabilities.
Flexibility and Customization
Every individual’s situation is unique, and an SNT can be customized to fit those needs. For example, the trust document can include provisions for long-term care, managing inheritance from a loved one, or handling funds received from a settlement. There are several ways to fund an SNT, including gifts, inheritances, life insurance policies, or legal settlements.
Tax and Estate Advantages
A Special Needs Trust can be an important part of a broader estate plan. Because the trust is a separate legal entity, assets placed within it can bypass the probate process. This means that the funds are transferred directly to the trust after the grantor’s death, offering peace of mind and preserving assets for future generations.
Additionally, in third-party SNTs, the funds are not subject to Medicaid payback requirements when the beneficiary passes away, which helps maintain more of the remaining assets for other heirs.
Facilitating Contributions
Family and friends often want to help, but they might worry that giving money directly to someone with a disability could affect their government benefits. An SNT provides a safe and secure way for loved ones to contribute financially.
Funds from relatives, friends, or even community groups can be added to the trust without risking the beneficiary’s eligibility for essential benefits.
Who Needs a Special Needs Trust?
A Special Needs Trust can be a lifeline for various individuals and families, including:
● Individuals with Developmental Disabilities
● Individuals with Physical Disabilities
● Individuals Facing Mental Health Challenges
● Individuals Who Have Received Settlements or Inheritances
● Anyone Anticipating Long-Term Care Needs
If you, or someone you care about, falls into one of these categories, a Special Needs Trust could be the key to protecting their future.
Securing Your Loved One’s Future: Contact Burgess & Christensen Today
At Burgess & Christensen, we are deeply committed to helping families secure a stable and enriching future for their loved ones. We understand the laws and requirements needed to keep benefits intact while providing additional financial support.
If you live in Georgia and believe that a Special Needs Trust might be right for your family, we invite you to contact us for a free consultation at 770-422-8111 or visit our contact page.