Planning for the Future: Establishing a Special Needs Trust

When you’re caring for a loved one with disabilities, financial planning takes on an entirely new level of importance. Beyond day-to-day support, it’s about ensuring their long-term needs are met—without compromising eligibility for essential benefits like Medicaid or Supplemental Security Income (SSI).

One tool that can make a significant difference is a Special Needs Trust (SNT).

What Is a Special Needs Trust?

A Special Needs Trust is a legal arrangement designed to hold and manage assets for the benefit of an individual with disabilities. Its purpose is simple but critical: to provide financial support without disqualifying the beneficiary from government assistance programs.

Programs like Medicaid and SSI have strict income and asset limits. A properly structured SNT allows funds to be used for supplemental needs—while keeping those benefits intact.

To qualify, the trust must be drafted with very specific language and legal structure. This isn’t a DIY document—it requires careful planning and legal guidance.

Why Consider a Special Needs Trust?

While protecting access to public benefits is a major advantage, an SNT also offers:

• Enhanced quality of life: Trust assets can be used for things government programs don’t cover—like education, travel, therapies, hobbies, or specialized care.

• Long-term financial security: The trust can continue supporting your loved one even after you're no longer able to do so.

• Peace of mind: Knowing there’s a plan in place can bring comfort to families navigating the complexities of long-term care.

How to Set One Up

Because Special Needs Trusts are complex legal documents, it’s essential to work with an attorney who specializes in special needs planning. They’ll help ensure the trust complies with state and federal requirements—and aligns with your family’s specific goals.

A Foundation for Lifelong Support

Establishing a Special Needs Trust is more than a financial decision—it’s a long-term investment in your loved one’s well-being and independence. With the right planning, you can help protect their future, support their needs, and maintain access to the programs they rely on.

If you’re setting up or already managing a Special Needs Trust, it’s important to have the right tax strategy in place. At Aldridge Borden, we help families and trustees navigate trust tax returns and long-term planning—so you can focus on supporting your loved one with confidence.

Contact us to learn more about our trust tax services and how we can support your planning.