The Power Duo of Special Needs Trusts and Able Accounts
Planning for the future of a loved one with a disability requires specialized knowledge and a compassionate approach. A Special Needs Trust (SNT) is a crucial tool that can help ensure their well-being while preserving essential government benefits like Medicaid and Supplemental Security Income (SSI). At Hitchman Fiduciaries, we understand the complexities of special needs planning and provide expert guidance and administration of SNTs.
What is a Special Needs Trust?
An SNT is a legal arrangement that holds and manages assets for a person with a disability. It’s designed to supplement, not replace, government benefits, allowing individuals to maintain their eligibility for programs like Medicaid while accessing funds for a higher quality of life.
Types of Special Needs Trusts
| Type | Funding Source | Key Features |
|---|---|---|
| First-Party SNTs | Beneficiary’s own assets (e.g., inheritance, personal injury settlement) | Requires a Medicaid payback provision upon the beneficiary’s death. |
| Third-Party SNTs | Assets from someone other than the beneficiary (e.g., parent, grandparent) | Greater flexibility; no Medicaid payback requirement. |
| Pooled Trusts | Contributions pooled and managed by a non-profit organization | Professional management with lower administrative costs. |
Who Benefits from a Special Needs Trust?
An SNT can benefit individuals with a wide range of disabilities, including:
- Intellectual and Developmental Disabilities: For example, a young adult with autism may use SNT funds for specialized job coaching and social skill programs.
- Physical Disabilities: A person with paraplegia might utilize trust assets to purchase accessible vehicles or make home modifications.
- Mental Health Conditions: An individual with schizophrenia could benefit from funds for therapy, medication, or recreational programs that enhance mental well-being.
- Chronic Illnesses: Someone managing conditions like multiple sclerosis could use the trust for assistive devices or travel to specialized medical facilities.- Intellectual and developmental disabilities
How an SNT Enhances Quality of Life
An SNT can pay for a variety of goods and services that enhance the beneficiary’s quality of life, such as:
- Specialized Therapies and Medical Equipment: For instance, funds might cover physical therapy sessions for improved mobility or advanced hearing aids.
- Assistive Technology and Home Modifications: An example is the purchase of a wheelchair-accessible van or installing ramps and lifts at home.
- Education and Vocational Training: SNT funds can support enrollment in specialized programs, such as life skills training or tailored vocational courses.
- Recreational Activities and Travel: For example, SNT funds could cover a beneficiary’s trip to visit family or attend a summer camp for individuals with disabilities.
- Personal Care and Support Services: This might include hiring a personal care aide or companion to assist with daily activities.
Why Choose Hitchman Fiduciaries as Your Trustee?
At Hitchman Fiduciaries, we pride ourselves on delivering exceptional service with a personal touch. Here’s what sets us apart:
- Deep Expertise: Our team stays up-to-date on the latest regulations and best practices to ensure your trust is managed effectively.
- Personalized Approach: We work closely with families to create customized plans that address their loved one’s unique needs.
- Transparent Communication: Regular updates and clear explanations keep you informed every step of the way.
Beyond the Basics: Addressing Your Concerns
- Cost: We offer competitive and transparent fee structures for our trustee services. Contact us to learn more about our fee models and how they align with your needs.
- Choosing a Trustee: Selecting the right trustee is crucial. Look for expertise, financial stability, and a commitment to acting in the beneficiary’s best interests.
- Alternatives to SNTs: While ABLE accounts are a valuable option for some, SNTs often provide greater flexibility and protection for larger sums of money. Learn more about ABLE accounts here.
Take the Next Step
Planning for the future of a loved one with a disability can feel overwhelming. Hitchman Fiduciaries is here to provide the expertise and support you need.