Special Needs Trusts and Planning

What to Expect with a Special Needs Trust?

A Special Needs Trust, also known as a Third-Party Special Needs Trust, protects the special needs person’s assets, whether your child, grandchild, or adult family member.

What does the money cover?

A Special Needs Trust ensures the person still maintains eligibility for government benefits for food, shelter, and medical care, which allows the person’s assets to help cover the costs for other expenses, including:

• • Dental costs
  • Education costs
  • Home or auto repairs
  • Travel expenses

Putting a Special Needs Trust in place for your child, grandchild, or family member helps provide that person with a higher quality of life.

Special Needs Trust in Pennsylvania

In Pennsylvania, a Special Needs Trust allows the special needs PA resident to maintain eligibility for PA public benefits (Medical Assistance, Medicaid Waivers and Supplemental Security Income (SSI), Social Security Disability, and Medicaid). Without it, if the person has more than $2,000 in assets, they aren’t eligible for some government benefits (a Special Needs Trust allows them to surpass the $2,000 limit).

Selecting a Trustee for the Special Needs Trust

There are some situations where a trustee needs to be selected to make financially sound decisions for the special needs person. A trustee is necessary for anyone under 18 years old or anyone unable to make sound financial decisions. The trustee can use their discretion to determine how to use the money for the special needs person’s benefit.