How to Protect a Loved One with Special Needs Through a Supplemental Needs Trust

If you have a loved one with special needs, it’s important to plan ahead so that they can receive financial support without losing access to essential government benefits like Medicaid or SSI. A Supplemental Needs Trust (SNT) allows you to provide for their future while preserving eligibility for those programs.

Why a Direct Inheritance May Hurt

Government aid is often “means-tested,” and even a modest inheritance can disqualify someone from receiving benefits. However, a properly structured SNT can hold assets on behalf of your loved one without counting them against benefit limits.

What Can a Supplemental Needs Trust Pay For?

A Supplemental Needs Trust can be used for life-enhancing expenses such as:

• Housing supports

• Transportation

• Therapies or medical care not covered by Medicaid

• Education and personal care

• Vacations or entertainment

These expenses supplement but do not replace government-provided support.

Types of SNTs

• Third-Party SNT: Funded by parents or relatives; ideal for estate planning.

• First-Party SNT: Funded with the beneficiary’s own assets (e.g., settlement or inheritance).

• Pooled SNT: Managed by a nonprofit for multiple beneficiaries.

  
  

Key Planning Tips

• The trust must clearly state it is meant to preserve benefit eligibility.

• Choose a trustee familiar with SNT rules—mismanagement could cause loss of benefits.

• Coordinate the SNT with your will or living trust to ensure consistency.

  
  

Protect What Matters Most

A Supplemental Needs Trust is one of the most powerful tools available to protect a vulnerable loved one without jeopardizing vital services.

Contact The Law Office of Jin-Wook Kim, P.C. today to schedule a consultation and learn how to incorporate an SNT into your estate plan. We proudly serve families across Long Island and New York City.