Lifelong Protectionfor Your Loved One

A Special Needs Trust (SNT) holds assets for a person with disabilities without disqualifying them from means-tested government benefits like SSI, Medicaid, and Section 8 housing. The trustee uses trust funds to pay for supplemental needs — therapies, education, recreation, technology, travel — that government benefits don't cover. This dramatically improves quality of life while maintaining essential benefit eligibility.

Yes, if they inherit directly. Even a small inheritance can disqualify them from SSI, Medicaid, and other means-tested programs. That's why a Special Needs Trust is essential — assets held in a properly drafted SNT are not counted as the beneficiary's resources. Never leave money directly to a family member with disabilities; always use a trust. Also alert family members who might leave gifts or bequests.

A third-party SNT is funded by someone other than the beneficiary (parents, grandparents) and has no payback requirement at death. A first-party SNT is funded by the beneficiary's own assets (inheritance, lawsuit settlement) and must repay Medicaid upon the beneficiary's death. Third-party SNTs are preferred because remaining funds pass to other family members rather than the government.

Choose someone who understands your child's needs, is good with finances, and can navigate government benefit rules. Options include: a trusted family member (may serve for free but needs education), a professional trustee or trust company (experienced but charges fees), or a combination — a family member for personal decisions and a professional for financial management. Many families also appoint a Trust Protector for oversight.

Yes, and you should. ABLE (Achieving a Better Life Experience) accounts allow individuals disabled before age 26 to save up to $18,000/year (up to $100,000 total for SSI purposes) without affecting benefits. ABLE accounts are more flexible than SNTs for everyday expenses and can be managed by the beneficiary. Use both: an ABLE account for day-to-day supplemental spending and an SNT for larger, long-term funding.