Special Needs Trusts: Protecting Their Long-Term Care

Caring for a loved one with special needs has a unique set of responsibilities. 

Your love and care have been constants in their life.

Establishing an SNT (Special Needs Trust) can help ensure that the same love and care continues after you’re no longer able to directly help them. 

What is a Special Needs Trust and Why Do You Need It?

A Special Needs Trust is a legal tool that allows you to set aside money and assets for a person with disabilities without affecting their eligibility for needs-based government benefits like Medicaid or Supplemental Security Income (SSI).

These benefits can support your loved one by providing:

• Healthcare and medical treatments
• Prescription medications
• Therapy and long-term care services
• Basic living expenses and income support

Often, Medicaid is the only way to receive this type of long-term care and special services that are not covered by private insurance. 

Supplemental Security Income (SSI) can help your loved one by assisting with the cost of housing, food, and other life essentials.

Qualifying for these benefits often comes with strict income and asset limitations. If your loved one receives money directly, even if it comes as a gift or as part of an inheritance, it can disqualify them from receiving the support they rely on every day. Their benefits can be reduced or taken away entirely.

A Special Needs Trust allows you to completely avoid that risk as the trust holds and manages the money and assets on behalf of your loved one. You can still care for and support them without jeopardizing their other benefits. 

With the right planning, a Special Needs Trust can ensure your loved one receives consistent care, stable housing, travel, therapy, education, and access to programs that can help pay expenses for their daily living.

Who Needs a Special Needs Trust?

If you would like to designate an inheritance to your child, parent, sibling, or other loved ones who receive needs-based government benefits, establishing a Special Needs Trust is essential to ensure they don’t lose the support and care they need because of your generosity. This is known as a third party special needs trust. 

If you are the one on needs-based benefits and have come into an inheritance, settlement, or other money then a special needs trust is essential to preserve your benefits. This is known as a first party special needs trust.

What Can a Special Needs Trust Pay For?

A Special Needs Trust can pay for a wide variety of items and support services needed to care for your loved one with disabilities. This can help maintain or improve their quality of life by covering the cost of:

• Medical and dental expenses not covered by insurance
• Educational programs and training
• Therapy and counseling
• Transportation and travel
• Recreational activities and hobbies
• Personal care attendants
• Special equipment or home modifications

Why Do You Need an Attorney to Establish a Special Needs Trust?

Setting up a Special Needs Trust is a highly personal and individualized process. Each situation is unique to the support your loved one needs. 

Establishing this plan requires:

• Understanding the specific laws of the State of Missouri
• A deep knowledge of the rules surrounding benefits from Medicaid and SSI
• Proper drafting and structuring of the trust to protect your beneficiary
• Accurate funding of the trust after its creation

Any mistake, even a small one, could cost you hundreds of thousands of dollars’ worth of benefits. Being forced to pay out of pocket for these support services and essential items can quickly exhaust any inheritance or financial gift much more quickly than intended. This leaves your loved ones with fewer resources and more instability.

How Much Does A Special Needs Trust Cost?

Because setting up your Special Needs Trust is a highly individualized process, the cost of establishing an SNT in Missouri can vary based on the complexity of the situation. Depending on the type of trust you need, the assets involved, and the length of time being considered, your expenses match the circumstances of your case. 

Setting Up a Special Needs Trust is an Amazing Act of Love and Care for Their Future

Financial security.
Long-term stability.
Consistent access to benefits.
Peace of mind. 

Establishing a Special Needs Trust for your loved one with a disability is a deeply meaningful way to protect and care for them after you’re no longer able to directly support them. You can confidently know that they are covered, no matter what the future holds. 

Talk With Ozarks Elder Law About Your SNT Case

If you are thinking about your next step to protect a loved one with a disability and are worried about their eligibility for essential benefits, it costs you nothing to see if an Ozarks Elder Law attorney can help.

Whether you’re ready to set up a Special Needs Trust or want more clarity and understanding on your options, you can schedule a FREE consultation to look at your case.

Ozarks Elder Law serves families across Southwest Missouri with experienced and compassionate care. 

Building a plan for your loved one isn’t about money and bills… It’s about protecting their long-term care.