Frequently Asked Questions

What is a Special Needs Trust?
A Special Needs Trust (SNT) is a trust created for people with disabilities that helps preserve the beneficiary’s eligibility for means‑tested, needs‑based public benefits such as Medicaid and Supplemental Security Income (SSI). Because the beneficiary does not own the assets held in the trust, they may remain eligible for benefit programs that impose asset limits.

What is a Trustee?
A trustee is the person or entity responsible for managing the trust assets and administering the trust according to its terms. A trustee may be a family member, a friend, or a professional. Professional trustees are often attorneys, corporate trust companies, financial institutions, or nonprofit organizations. A trust may name more than one trustee.

What is a Beneficiary?
A beneficiary is the person for whose benefit the trust is established. In a Special Needs Trust, the beneficiary must have a disability recognized by the Social Security Administration.

What is a Grantor or Settlor?
A grantor (also called a settlor) is the person whose assets fund the trust. In a first‑party or self‑settled trust, the grantor/settlor is also the beneficiary. In a third‑party trust, the grantor/settlor is typically a parent, family member, or other loved one.

How can I keep my family involved in my family member’s Special Needs Trust?
Family members may serve as a trustee or as a trust protector. Both roles allow for family involvement and oversight. Serving as a trustee can be time‑consuming and requires a significant level of responsibility, which may not be appropriate for everyone. A trust protector typically has oversight responsibilities but no day‑to‑day administrative duties. A trust protector may have authority to remove and replace a trustee if the trustee is not acting in the best interests of the trust or beneficiary.

What can be paid for with a Special Needs Trust?
A Special Needs Trust is intended to supplement, not supplant, public benefits such as Medicaid, SSI, or SSDI. Trust funds are used to pay for goods and services that are not otherwise provided by these programs, or for supplemental items and services that exceed what the beneficiary’s monthly SSI or SSDI benefit can reasonably cover.

This may include uncovered medical and dental expenses, medical supplies and equipment, and alternative or complementary therapies such as acupuncture, Reiki, equine therapy, music therapy, and art therapy. A trust may also pay for education and training, hobbies, technology, pet care, automobile-related expenses, and household items such as appliances, cookware, towels, and bed linens.

Can a trust own real property?
Yes. A Special Needs Trust may own real and personal property, including a home, condominium, or vehicle. Trust assets are not limited to cash and investments. Home and vehicle purchases will not be made from a trust unless they meet the asset requirement threshold. 

Can I have both a Special Needs Trust and an ABLE Account?
Yes. An individual may have both a Special Needs Trust and an ABLE Account. ABLE Accounts have annual contribution limits and a cap on the amount that may be held in the account for purposes of maintaining SSI eligibility. Because of these limits, an ABLE Account may not meet all long‑term planning needs, while a Special Needs Trust does not have a maximum asset limit.

Can money be transferred from a Special Needs Trust to an ABLE Account?
Yes. Funds may be transferred from a Special Needs Trust to an ABLE Account, subject to the applicable annual contribution limits.

What if I do not currently receive Medicaid or Supplemental Security Income—do I still need a Special Needs Trust?
Even if an individual with a disability is not currently receiving public benefits, a Special Needs Trust may still be beneficial. A trust can provide professional management of assets, support long‑term planning, and help ensure that supplemental needs are met. It can also be an important planning tool if public benefits are needed in the future.

How is a Special Needs Trust funded?
Many families establish trusts that are funded at a later time, such as through retirement accounts, pension benefits, inheritances, or gifts from family and friends. Assets directed to a properly drafted third‑party Special Needs Trust are not subject to Medicaid payback at the beneficiary’s death, and remaining assets may pass to other designated heirs.

A Special Needs Trust may also be funded with assets belonging to the individual with a disability, such as proceeds from a personal injury settlement or an inheritance received outright. These trusts are known as first‑party or self‑settled trusts and are generally subject to Medicaid payback upon the beneficiary’s death.

What is Estate Planning and why is it important?
Estate planning involves planning for an individual’s incapacity or death with respect to managing assets, debts, and legal responsibilities. Estate planning may include drafting a will, establishing powers of attorney, and planning for guardianship or conservatorship when appropriate. For families with a loved one who has a disability, estate planning often includes establishing a Special Needs Trust so that an inheritance can be received without jeopardizing public benefits.

Estate planning is particularly important for families of individuals with disabilities to ensure there is a clear plan to provide for that person’s needs when parents or guardians are no longer living or able to provide care.

A Life Plan or Letter of Intent is also an important planning tool. This document communicates the individual’s goals, preferences, routines, and support needs to future trustees and care providers.

Why should funeral and burial arrangements be pre‑planned?
Making funeral or burial arrangements in advance can reduce stress and emotional burden on family members at a difficult time. It also allows the individual with a disability to have input into their wishes. In many cases, a Special Needs Trust may pay for pre‑need arrangements during the beneficiary’s lifetime, and third‑party trusts may pay remaining expenses after the beneficiary’s death.

Is Enhanced Life Options Group a charitable organization? What does that mean?
Yes. Enhanced Life Options Group is a nonprofit organization recognized as a 501(c)(3). A nonprofit organization is a non‑governmental organization that operates to provide a public or social benefit rather than to generate profit.