What is a Special Needs Trust (SnT)?
A special needs trust (SNT), sometimes referred to as a supplemental needs trust, is a legal vehicle enabling assets to be held on behalf of someone with disabilities without affecting their eligibility for means-tested public benefits such as Medicaid or Supplemental Security Income.
How do I administer a special needs trust?
Administering a special needs trust is considerably more complicated than managing most other trusts. The trustee is responsible for investing funds, making disbursements, paying taxes and maintaining detailed accounts.
What is the Special Needs Trust Fairness Act?
The Special Needs Trust Fairness Act, federal legislation that allows people with disabilities to create their own special needs trusts instead of having to rely on others, is now law. The measure was included in the 21st Century Cures Act, a $6.3 billion package of health-related initiatives signed by President Obama on December 13, 2016.
Can a special needs trust be the payee of a settlement?
If structured settlement annuity payments are utilized where a special needs trust is involved, the payee of the structured settlement annuity payments must be the special needs trust. What are Medicare set-asides and what role do they play in personal injury settlements? How can they be integrated with a special needs trust?
A Special Needs Trust (SNT) allows for a disabled person to maintain his or her eligibility for public assistance benefits, despite having assets that would otherwise make the person ineligible for those benefits. There are two types of SNTs: First Party and Third Party funded. 1. First Party
Who are the beneficiaries of a special needs trust?
All three name the person with special needs as the beneficiary. A “first-party” special needs trust holds assets that belong to the person with special needs, such as an inheritance or an accident settlement.
When does a special needs trust terminate?
Once established, SNTs may terminate either with the death of the primary beneficiary or in the event of specific circumstances. Learn more. Skip to content Contact Us Search for: FIND AN ATTORNEY SPECIAL NEEDS 101 Overview Life Care Planning Special Needs Trust ABLE Accounts Special Education Government Benefits Free Trustee Handbook
What is a first-party special needs trust?
A “first-party” special needs trust holds assets that belong to the person with special needs, such as an inheritance or an accident settlement. A “third-party” special needs trust holds funds belonging to other people who want to help the person with special needs.