Special Needs Trusts
A Special Needs Trust, also known as a Supplemental Needs Trust, helps provide for a loved one with disabilities without affecting their ability to receive important government benefits.
Protect Disability and Medicaid Benefits
Safeguard Government Benefits
Trust for Your Special Needs Family Member
Why create a Special Needs Trust? To make sure a family member with a disability can still qualify for government benefits while also receiving extra financial support from their family or a legal settlement.
Also called Supplemental Needs Trusts, these estate planning trusts are designed to add to, not take the place of, benefits like Medicaid, SSI, or housing assistance. They allow families to provide additional care, comfort, and stability without affecting the loved one’s ability to receive essential public support.
Let our attorneys educate you on protecting your disabled family member.
Setting up a Trust
Supplementing the Needs of a Disabled Person
Caring for a loved one with a disability can be challenging, especially when they receive an inheritance or settlement that could affect their eligibility for government benefits. A Special Needs Trust, also known as a Supplemental Needs or Supplemental Benefits Trust, is a legal tool that protects those assets while allowing the person to continue receiving support like Medicaid, SSI, or public housing. The trust allows families to enhance their loved one’s quality of life by covering expenses that benefits do not. It offers peace of mind by ensuring the person is cared for without risking access to essential public programs.
A Self-Settled or First Party Special Needs Trust is created using the assets of the individual with a disability, including things like inheritance, financial gifts, investments, or lawsuit settlements. Often referred to as a (d)(4)(A) trust, it includes a payback provision requiring that MO HealthNet (Medicaid) be reimbursed after the beneficiary passes away or the trust is terminated, if Medicaid benefits were used during their lifetime.
A Third-Party Special Needs Trust is funded with assets that belong to someone other than the person with the disability, such as parents, relatives, or friends. Since the money never belonged to the beneficiary, there is no requirement to reimburse MO HealthNet (Medicaid) after the beneficiary’s death. This type of trust is often used to leave an inheritance or provide long-term support for a loved one with special needs.
Education from an Attorney
Have an attorney prepare a proper Special Needs Trust.
Special Needs Trusts are complex and understanding how to properly create and administer them is easier with the assistance of an experienced attorney.
Look After Disabled Loved Ones
Why a Special Needs Trust?
The primary benefits of creating a Special Needs Trust are that it offers important legal and financial protections as well as that it:
Maintains Eligibility for Public Benefits: A properly structured Special Needs Trust allows you to set aside funds for the beneficiary’s supplemental needs without interfering with their access to essential government assistance programs such as Medicaid or Supplemental Security Income (SSI).
Improves Quality of Life: The trust funds can be used for expenses not covered by government benefits, such as education, counseling, recreation, and entertainment. These extras significantly enhance the beneficiary’s day-to-day experiences and overall well-being, providing a richer and more fulfilling quality of life.
Provides for the Future: Perhaps most importantly, a Special Needs Trust offers reassurance that your loved one will have financial resources available even after you are no longer able to provide direct support.
Related Post: Is Your Loved One With a Disability Protected?
Work with our attorneys to take care of disabled family members.
Frequently Asked Questions About Special Needs Trusts
By setting aside assets in a special needs trust, you can enhance the financial support of a disabled family member while maintaining their public benefit eligibility.
Direct gifts can either penalize or disqualify a person from Medicaid or SSI benefits, but a Special Needs Trust avoids this.
A trusted and well-organized family member or experienced trust company, choosing the right trustee is one of the most important decisions as they will be responsible for managing the trust funds and making sure distributions follow the law.
The sooner the better. Planning early ensures long-term protection and peace of mind.
Rooted in Springfield, Missouri, our law practice reaches across the state from St. Joseph, Cape Girardeau, and Independence to growing communities like Ozark, Nixa, Republic, Rogersville, Sedalia, Joplin, and West Plains.
Contact Us to Schedule a Consultation
We can provide guidance to protect government benefits for disabled family members. Our team consists of attorneys skilled in special needs trusts as well as general estate planning.
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