LEGAL CONCERNS
Planning to Meet Special Needs
Special planning is required to meet
the needs and circumstances of
many beneficiaries. When families
include individuals with disabilities
as beneficiaries, special or
supplemental needs trusts (SNT)
are often an effective estate
planning tool. The basic purpose of
these trusts is to benefit or enhance
a loved one's quality or standard of
life while preserving eligibility for
governmental benefits.
Family members with disabilities or
special needs often require
assistance in covering large and
extraordinary care costs.
Qualification for governmental
assistance is often unavoidable.
SNT's are designed to be used in
addition to governmental
assistance, not to replace it or
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disqualify one from eligibility (even
assistance in the form of Medicaid).
In a nutshell, proper and effective
SNT's, when funded and
administered, allow a beneficiary to
continue to qualify for various
forms of governmental assistance.
Generally, funds from a special
needs trust cannot provide or pay
for basic needs such as medical
care, food and shelter, that are
covered by a governmental
program. However, SNT's can pay
for “extras” that governmental
programs do not cover, for example,
recreation, entertainment and
unreimbursed medical, to name
only a few. The beneficiary does
not have a right to demand or
control funds. A Trustee controls
the trust and is allowed only to
make distributions that do not
disqualify the beneficiary.
Special needs trusts provide extra
assistance and increased quality of
life for our disabled loved ones.
Where an individual has qualified
for governmental programs that
meet the most basic of needs,
SNT's can be utilized to provide the
joy that we all experience from
travel, recreation, hobbies and
more.
Special needs trusts are
complicated, but worth it. Special
people deserve special and careful
planning.
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Anne Hensley Poindexter, Partner
CAMPBELL KYLE PROFFITT LLP.