A Special Needs Trust (SNT), also known as a Supplemental Needs Trust, is a trust created for a disabled beneficiary to hold funds in a way that preserves his or her eligibility for public benefits. There are three types of special needs trusts: A first party special needs trust is one that is funded withRead More
Special needs trusts are trusts that hold assets for a disabled beneficiary and distribute funds in a way that preserves the beneficiary’s eligibility to receive public benefits. Pooled trusts are a special needs trusts established by non-profit organizations. Those who wish to join a pooled trust sign a joinder agreement, which dictates the trust’s terms, and thenRead More
What is the Difference between a First-Party Special Needs Trust and a Third-Party Special Needs Trust?
I received an email this week from someone who had a special needs trust for a sibling. She wondered if her sibling could put some of his own assets into a special needs trust that a family member created for him. Special needs trusts are not all the same. First-party special needs trusts are designedRead More
Several parents have contacted me recently about setting up stand-alone special needs trust for their children. Unlike a supplemental needs trust that is created in a Will and funded at death, a stand-alone special needs trust is established during one’s lifetime and funded immediately. Clients are often prompted to establish a stand-alone trust because relativesRead More
If you have been named as the trustee of a special needs trust, you likely have many questions about how to administer the trust. You can get many of the answers you need in the Special Needs Alliance Guidebook for Special Needs Trustee. This excellent guide provides definitions of unfamiliar words, distinguishes self-settled special needsRead More
Parents whose children are receiving government benefits, such as SSI and Medicaid, know that those benefits are means-tested. Those with countable assets greater than $2,000 can lose their eligibility to receive SSI and Medicaid. So they worry about leaving an inheritance to a child who may be receiving these benefits. To avoid disqualifying their childrenRead More