How Can My Estate Plan Help My Child with Special Needs?
A Special Needs Trust or Supplemental Needs Trust (SNT) can be a powerful way to incorporate in your estate plan to make sure a loved one with disabilities is taken care of. It allows you to set aside money or other assets to meet their needs without affecting their eligibility for important benefits like Supplemental Security Income (SSI) or Medicaid.
Programs like SSI and Medicaid have strict income and asset limits, but an SNT protects those benefits. The trust can hold assets without being counted against those limits, so your loved one can keep receiving the support they need.
Government benefits are helpful but usually only cover the basics. A Special Needs Trust can pay for things that improve quality of life, like:
- Additional medical or dental care
- Education or job training
- Assistive technology or equipment
- Personal care services
- Recreational activities or hobbies
- Travel and transportation
- Therapy or counseling
You can choose someone you trust—a family member, friend, or professional—to manage the trust. This person, called the trustee, makes sure the funds are used appropriately to benefit your loved one and stay in compliance with the rules.
An SNT gives you the ability to leave specific instructions for how the money should be used and who should oversee it, so you know their needs will be met.
Types of Special Needs Trusts
There are different kinds of SNTs depending on your situation. Here is a brief description of each. Our experienced team at Wilson Law will be able to advise which trust will work best for your situation.
First-party SNTs: Funded with the beneficiary’s own money, like a lawsuit settlement.
Third-party SNTs: Funded by someone other than the beneficiary.
Pooled SNTs: Managed by nonprofit organizations. It allows beneficiaries to “pool” their resources together to minimize costs and maximize returns, while each beneficiary still has their own account within the trust.
If you would like to explore whether a special needs trust is the right solution for your family, reach out to Wilson Law to get started. We can help you create a plan that works best for your loved one. To get started, call our office at 866.603.5976 or complete our online form and we will be in touch to schedule an appointment.
