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What is a Special Needs Trust (SNT)?<\/strong><\/p>\n\n\n\n A Special Needs Trust (SNT) is a legal arrangement that allows a person with a disability to receive income without jeopardizing their eligibility for public benefits. SNTs are designed to manage and protect assets for a beneficiary with special needs. <\/p>\n\n\n\n Special needs encompasses many different disabilities and special needs, and anyone can be included, such as children under 18, elderly over 65, and every age in between. <\/p>\n\n\n\n Muslim American families with disabled children face many challenges.<\/strong><\/p>\n\n\n\n And what will happen when I’m not here? <\/p>\n\n\n\n When do you need a Special Needs Trust (SNT)?<\/strong><\/p>\n\n\n\n A Special Needs Trust (SNT) can be utilized when there is a need for:<\/p>\n\n\n\n An SNT is a vehicle to manage assets and income for a person with special needs. SNTs provide income and assets for the benefit of the person with special needs and, at the same time, maximizes government benefits, like SSI and Medicaid.<\/p>\n\n\n\n There are three types of SNTs: First Party SNTs, Third Party SNTs, and Pooled SNTs<\/p>\n\n\n\n First Party SNTs<\/span><\/em><\/p>\n\n\n\n First Party SNTs are generally set up by the beneficiary, the beneficiary’s parents or family, or by a court for the sole benefit of the person who is disabled and under 65 years of age. The SNT is funded with the assets of the disabled person. After the disabled beneficiary’s passing, the remaining balance in the SNT is used to reimburse the State for Medicaid payments. First Party SNTs are often used when the person receives a large sum of money (e.g.<\/em> from an inheritance or legal settlement). <\/p>\n\n\n\n Third Party SNTs<\/span><\/em><\/p>\n\n\n\n Unlike First Party SNTs, a Third Party SNT is set up by the beneficiary’s family, such as a parent, grandparent, or sibling. It is not set up by the person who has special needs. The SNT is also funded with assets other than the beneficiary’s assets. <\/p>\n\n\n\n In other words, the Third Party SNT is funded with assets from someone other than the beneficiary (e.g.<\/em> parents or other relatives). Parents, for example, will name the SNT as a beneficiary for their trust instead of naming the disabled child directly. Third Party SNTs are commonly established by family members as a part of estate planning. <\/p>\n\n\n\n Third Party SNTs do not have the payback requirement to reimburse Medicaid. Any balance remaining in the SNT at the passing of the beneficiary will pass to the disabled person’s heirs. This is the major difference between First Party and Third Party SNTs.<\/p>\n\n\n\n Pooled SNTs<\/span><\/em><\/p>\n\n\n\n This type of SNT is managed by nonprofit organizations. The nonprofit organization combines assets from multiple beneficiaries into a single fund that maintains separate accounts. The Pooled SNT is similar to the First Party SNT in that the SNT is funded with the disabled person’s money. While the Pooled SNT is obligated to reimburse the State for Medicaid payments, the balance remaining in the SNT need not be repaid to Medicaid if held by the Trust or for the benefit of the Charity.<\/p>\n\n\n\n Is an SNT a useful estate planning tool for you?<\/strong><\/p>\n\n\n\n If you have a family member with a disability and need advice on setting up an SNT, please reach out to us. We will be happy to refer you to an estate planning attorney in your state who handles Special Needs Trusts. <\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" Securing the Future for Loved Ones with Disabilities What is a Special Needs Trust (SNT)? A Special Needs Trust (SNT) is a legal arrangement that allows a person with a disability to receive income without jeopardizing their eligibility for public benefits. SNTs are designed to manage and protect assets for a beneficiary with special needs. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"banner_title":"Understanding Special Needs Trusts","banner_subtitle":"Securing the Future for Loved Ones with Disabilities","footnotes":""},"categories":[386,453],"tags":[627,431,624,626,390],"class_list":["post-881","post","type-post","status-publish","format-standard","hentry","category-islamic-estate-planning","category-trust","tag-estate-planning","tag-inheritance","tag-snt","tag-special-needs-trust","tag-trust"],"yoast_head":"\n\n
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