Special Needs Trust

Supplemental Needs Trusts or Special Needs Trusts are established by parents, families, and loved ones in order to establish and maintain public benefits, usually through Medicaid.

Because Medicaid will limit the amount of assets a person can keep, Special Needs Trusts can hold assets for the benefit for a Medicaid beneficiary. If drafted and administered correctly, the assets will not be counted as belonging to the Medicaid beneficiary.

Special Needs Trusts require expert advice in setting them up, making sure assets are directed or placed into the Special Needs Trust correctly, and that the money is taken out of the trust in the correct way.

Christina Lesher can efficiently help you:

• Prepare the correct Special Needs Trust for your situation
• Review who will be the Trustee
• Discuss the pros and cons if a corporate trustee is needed
• Assist in discussing the rules of trust distributions
• Coordinate beneficiary designations for the trust
• Comply with federal and Texas law

Types of Special Needs Trust

First Party Special Needs Trust – are established when a person who is on Medicaid, or expected to qualify for Medicaid has assets of their own that disqualify them for Medicaid. The Grantor of these trusts must be the parent, grandparent, guardian, or court order, and must provide that at the beneficiary’s death, any remaining trust assets are returned back to the state (known as a payback provision) to the extent Medicaid paid for care.

Self-Settled Special Needs Trust – are established when a person who is on Medicaid, or expected to qualify for Medicaid has assets of their own that disqualify them for Medicaid. The Grantor of these trusts must be the parent, grandparent, guardian, or court order, and must provide that at the beneficiary’s death, any remaining trust assets are returned back to the state (known as a payback provision) to the extent Medicaid paid for care.

Third Party Special Needs Trust – are established by a parent, grandparent, or loved one so that they family member can gift or transfer at their death, assets to the trust. The assets in the trust are not counted as belonging to the beneficiary, and provisions can be made within the trust to pass to other family members or charity at the death of the beneficiary without a payback provision. Careful planning is required to make sure the trust is properly funded.

To arrange for an initial consultation with lawyer Christina Lesher regarding Special Needs Trusts, call her firm at (713) 529-5900 or contact the firm online.