LET US GUIDE THE

Special Needs Trust

Eligibility for Public Assistance Benefits

A special needs trust otherwise known as SNT is designed to allow disabled persons to be able to be eligible or maintain their eligibility to receive public assistance benefits even if they had assets that would otherwise disqualify the person from such benefits.

SNTs are divided into two types. The first is called a First Party SNT and the second type is called a Third Party SNT.

First Party Funded

These type of SNTs have funds that belong to the trust beneficiary. In other words, the beneficiary is legally entitled to the funds because they are assets from an award or settlement. There must be a provision in this type of SNT that include both a federal and state provision stating that upon the death of the trust beneficiary or early termination of the SNT, there will be a payback to the State.

Third Party Funded

These SNTs are typically funded by a donor such as family and is setup to supplement government funding. They are not subject to a payback to the State as it is funded by a third party. In other words, a donor such as a father or mother may create this type of SNT as part of their estate plan to facilitate the person with special needs when the donor dies. Usually they are funded by life insurance policies, real estate, investments, and retirement accounts.

If you would like to make the process of having your assets distributed according to your wishes as smooth as possible for your heirs, then hire Compass Law Center to create the proper documents for you.