A Specials Needs Trust, or Supplemental Needs Trust (“SNT”) is a specific type of trust that allows the beneficiary of the trust to continue to qualify for needs-based assistance programs. Funds from the trust can be used to pay for a range of services and goods that are not covered by public programs.
A “first party” SNT is used when a disabled individual’s own assets are used to fund the Trust. In these cases, any assets remaining at the beneficiary’s death must first be used to pay back the State for the amount of any public assistance benefits the beneficiary has received. This type of Trust is often used when a disabled individual is awarded a settlement from a personal injury case or receives an inheritance. SNTs that are created for the benefit of someone other than the maker of the trust are called “third-party” SNTs. You have a great deal of flexibility in designing a Third-Party SNT.
We have drafted and administered dozens of SNTs. If you have a beneficiary who is or may be receiving needs-based government assistance, or if you wish to preserve your benefits after receiving an inheritance or settlement, you need an experienced attorney to guide you through the process.
