Hi, I’m Alex Anselment, an attorney at Evans Fox. Today, we’re discussing Supplemental Needs Trusts, or SNTs, and their importance for individuals with disabilities.
SNTs help maintain eligibility for government benefits, such as Medicaid and SSI, by allowing funds to be set aside without counting against a beneficiary’s resources. These trusts must be established based on factors like the beneficiary’s age, the source of funding, and the type of government assistance received.
There are three types of SNTs:
- A Self-Settled SNT: Funded with the disabled individual’s own money, often from an inheritance or settlement, which requires a payback provision for Medicaid.
- A Third-Party SNT: Created by family or friends for the benefit of a disabled individual, allowing flexibility in asset distribution.
- A Pooled SNT: Managed by a nonprofit organization, combining funds from multiple beneficiaries. This type offers unique benefits while ensuring funds serve the disabled community.
While SNTs can improve quality of life by covering expenses like travel and education, they cannot be used for shelter costs, such as rent, mortgage payments, property taxes, and utility bills. Recent updates to federal regulations, effective September 2024, now allow SNTs to cover food expenses.
If you have questions about Supplemental Needs Trusts or how they can fit into your estate plan, feel free to reach out to the team at Evans Fox.