Special Needs Trust

What is a Special Needs Trust?

A Special Needs Trust (SNT) is a legal arrangement designed to benefit individuals with disabilities while preserving their eligibility for public assistance programs such as Medicaid and Supplemental Security Income (SSI). These trusts are meticulously crafted to ensure that the assets held in trust are not considered as part of the beneficiary’s personal assets, thereby protecting their eligibility for essential government benefits.

Types of Special Needs Trusts

1. First-Party Special Needs Trust

A First-Party SNT is funded with the beneficiary's own assets, such as an inheritance, personal injury settlement, or savings. This type of trust must be established by a parent, grandparent, legal guardian, or court and is typically used when the beneficiary acquires significant assets. Upon the beneficiary's death, any remaining funds in the trust must be used to reimburse Medicaid for services provided during their lifetime.

2. Third-Party Special Needs Trust

A Third-Party SNT is funded with assets belonging to someone other than the beneficiary, usually a parent or grandparent. This type of trust is often created as part of an estate plan and does not require Medicaid reimbursement upon the beneficiary's death. Instead, the remaining funds can be distributed according to the trust’s terms, often benefiting other family members or charitable organizations.

3. Pooled Special Needs Trust

A Pooled SNT combines assets from multiple beneficiaries, managed by a nonprofit organization. Each beneficiary has a separate account, but the funds are pooled for investment purposes. This type of trust is an option for individuals who might not have enough assets to justify the costs of establishing a private SNT. Like First-Party SNTs, any remaining funds after the beneficiary’s death must reimburse Medicaid.

Why Choose Capital Tax for Special Needs Trust Services?

Expert Guidance

Our CPA possesses extensive knowledge and experience in working with Special Needs Trusts. We work closely with legal professionals to ensure that every trust we handle complies with all relevant laws and regulations, providing peace of mind to you and your family.

Comprehensive Financial Planning

We offer a holistic approach to tax planning, integrating the Special Needs Trust into your broader financial and estate planning strategy. This ensures that all aspects of your loved one’s future are secured.

Personalized Service

At Capital Tax, we recognize that every family's situation is unique. We tailor our services to meet your specific needs and circumstances, offering personalized advice and support throughout the entire process.

Ongoing Support

Our commitment to you doesn’t end once the trust is established. We provide ongoing support and management services to ensure that the trust continues to serve its intended purpose and adapts to any changes in your family’s circumstances or the law.

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