[ Estate Planning · Special Needs Trust ]
An inheritance that does not
undo the benefits.
[ The Problem ]
Direct inheritance can cost the eligibility. A trust prevents that.
When a beneficiary with a disability inherits assets directly, those assets typically count toward SSI and TennCare resource limits, and eligibility is lost. The intended gift becomes the cause of a paperwork crisis at exactly the wrong moment.
A special needs trust holds the inheritance in a structure that supplements, but does not replace, the benefits the beneficiary already receives. Drafted properly, it preserves both the eligibility and the practical use of what was left.
[ Two kinds ]
Third-party and first-party.
Third-party SNT.
Funded by parents, grandparents, or others with assets that never belonged to the beneficiary. There is no Medicaid payback at the beneficiary's death. Remainder goes to whomever the settlor names, including other family.
First-party SNT (d4A).
Funded with the beneficiary's own assets, often a personal injury settlement or an inheritance received before the trust existed. Federal law requires a Medicaid payback provision before any remainder distribution at death.
We draft the right one for the situation, and we explain the difference plainly so the family understands the tradeoff.
[ Coordination ]
ABLE accounts and pooled trusts.
An ABLE account is a useful complement to an SNT for beneficiaries whose disability began before age twenty-six. Contributions are limited annually, the funds are accessible to the beneficiary directly, and the resource exclusion is favorable.
A pooled trust, administered by a nonprofit, is a viable alternative for smaller funding amounts where a private trustee structure is impractical. We help families decide which combination fits the actual situation.
[ Trustee ]
Who holds the trust.
Trustee selection is the decision the family will revisit longest. A family member trustee knows the beneficiary but may lack the administrative discipline. A corporate trustee brings the discipline but not the relationship. A combined approach, with both, is often the right answer.
We talk through this at length. The trustee is the document made into a person.
[ The Work ]
What we draft.
[ Third-Party SNT ]
For parents and grandparents.
Standalone or testamentary trusts that hold an inheritance for a disabled beneficiary without disturbing benefits eligibility.
[ First-Party d4A ]
For settlements and direct funds.
Self-settled SNTs drafted to federal requirements, with the Medicaid payback structured correctly.
[ Coordination ]
ABLE and pooled options.
Side-by-side analysis of ABLE accounts, pooled trusts, and stand-alone SNT structures so the family chooses with full information.
[ Pricing ]
Flat-fee for the standard structure.
Most special needs trust engagements are flat-fee, with the figure depending on whether the trust is third-party, first-party, or part of a broader estate plan. Disclosed in writing before we begin.
[ Questions ]
What clients usually ask.
Drafted correctly, no. The trust is the recognized exception to the resource counting rules, provided the trustee never distributes cash directly to the beneficiary.
[ Continue ]