Special Needs Trusts Can Provide Enhanced Lifestyle

A Special Needs Trust (“SNT”) is a unique legal instrument that can provide a disabled individual supplemental benefits above and beyond those provided by government need-based benefits.

When properly drafted, a SNT can provide benefits such as entertainment and recreation expenses, advanced medical treatments or equipment, travel, therapy, rehab, dental care, etc. without putting the disabled individual at risk of being disqualified from receiving government benefits. Both state and federal law govern the creation and adminis tration of these trusts.

Depending upon the source of the assets that fund the trust, different rules will apply. Parents with disabled children should seriously consider creating such a SNT to protect their child from disqualification from government benefits upon the death of the parents. Any inheritance passing to the disabled child outright (rather than into a SNT) could disqualify the child from continuing to receive valuable government benefits necessary to provide for life’s essentials (food, shelter, medical care).

Upon the death of the beneficiary, any property left in the SNT must be distributed to the government to the extent that the disabled individual received government benefits. SNT’s must be carefully drafted, funded and administered. Contact an elder law attorney to find out if a SNT makes sense for your loved one.