Special Needs Attorney

A Special Needs Trust (also called a Supplemental Needs Trust) is a trust created for a disabled beneficiary that is structured to maintain the individual’s eligibility for government benefits. Medicaid and SSI have strict income and asset guidelines for determining eligibility. Many disabled individuals rely on these government benefits not only for financial assistance, but also for medical needs and social programs.

The two main types of supplemental needs trusts used to benefit a disabled individual are first-party trusts and third-party trusts. A first-party special needs trust holds the disabled individuals’ assets, such as savings, an inheritance, or a personal injury settlement. A third-party special needs trust is created using assets from someone other than the disabled beneficiary. Since a first party supplemental needs trust is funded with the disabled beneficiary’s own assets, any remaining assets in the trust must be paid back to Medicaid at the beneficiary’s death.  A third-party supplemental needs trust does not need a "payback" provision and the grantor can name who inherits at the beneficiary’s death.

ABLE Accounts provide an alternative to a Supplemental Needs Trust for individuals with a disabling condition that occurred before age 26. ABLE accounts allow disabled individuals to continue to receive SSI so long as the accounts holds no more than $100,000 and Medicaid eligibility with any balance.