Special Needs Trust
Two Types of Special Needs Trusts
A Special Needs Trust (SNT) is part of estate planning for people with a disability. It is a trust provides a means for people with a disability to have a higher quality of life. Sheri Tucker’s experience and advocacy helps families and individuals navigate the different types of special needs trust that is needed or required. There is a difference between a supplemental needs trust set up by a person for him or herself versus one set up by a family member. Below explains the different types of special needs trusts in estate planning.
First-Party Special Needs Trust
- First-Party Trust: Special Needs Trust that is a First-Party trust helps people who qualify for SSI keep their eligibility for government benefits. You may know this type of trust as a Self-Settled Trust. It is an irrevocable trust that is Medicaid compliant. The person with the disability must be under 65. People who expect to receive an inheritance or a personal injury settlement need to consider a First-Party Trust. A person can lose benefits without setting up a First-Party Trust. Sheri Tucker will work with you to set up the trust to help you keep your eligibility and helps find the right trustee to manage the trust funds.
- Pooled Trusts: Pooled Trusts are a First-Party Trust. A person may receive an inheritance or a personal injury settlement, but it is a small amount. Still, the money resource is over the amount allowed for SSI eligibility. The resources may need to be “pooled” with other trusts and a state approved entity manages the funds in the pooled trust.
Third-Party Trust: Third-Party Special Needs Trust is set up by a parent or grandparent for a family member with a disability. The purpose of a third-party trust is to provide a quality of life. The third-party funds the trust with diversified assets, including real estate. A child or adult with a disability benefits from distributions for a variety of living expenses.
The failure of proper planning may have lasting negative consequences. Tucker Legal Services is a law firm with experience to help you with your Special Needs Trust. Sheri Tucker works with family members to create Third-Party Special Needs Trust and helps find the right trustee to manage the trust funds. Book a complimentary consultation for your special needs trust planning with Sheri Tucker.