First Party Special Needs Trust (Trust For MySelf)
A First Party Special Needs Trust (Special Needs Trust), also known as a Self-Settled Special Needs Trust, or a “Payback Trust” is a powerful estate planning tool designed to protect the assets of individuals with special needs while preserving their eligibility for government benefits. Supplemental Security Insurance (SSI) is a Federal program which provides a monthly support check to those with Special Needs. Medicaid is a state run health insurance program for those with limited means. While a disability diagnosis can be an important part of the benefit application, it is not the only factor; both of these programs are means-tested, meaning that the government reviews the applicant’s available assets and income before granting the benefits.
Here is an in-depth look at how a First Party Special Needs Trust can help you:
Understanding First Party Special Needs Trusts
Key Features of First Party SNTs:
Preserving Government Benefits
Assets held in a First Party Special Needs Trust are not counted towards the asset limits for government benefits like Supplemental Security Income (SSI) and Medicaid. This allows individuals with special needs to maintain their eligibility for these vital programs while having additional resources to cover expenses not covered by these benefits.
Asset Protection
Assets held in a First Party Special Needs Trust are generally protected from creditors and legal judgments. This can provide significant financial security for individuals with special needs.
Enhanced Quality of Life
The funds in a First Party Special Needs Trust can be used to pay for a wide range of expenses that enhance the quality of life for the individual with special needs. These can include education expenses, recreational activities, personal care services, and more.
Drawbacks of First Party SNTs:
Payback
The major drawback to a First Party Special Needs Trust is the payback requirement. The Government requires that every First Party Special Needs Trust stipulate that at the death of the disabled beneficiary, any remaining Trust assets be used to pay back Medicaid for the cost of covering the beneficiary.
Limitations On Use
While a First Party Special Needs Trust can supplement government benefits, it is not designed to replace them. Therefore, the government restricts how trust funds can be used. In general, funds in a trust cannot be used to pay directly for shelter. This is why a Special Needs Trust works best with more flexible tools such as an ABLE Account.
Reporting Requirements
First Party Special Needs Trusts must file reports whenever funds are used for the benefit of the beneficiary so that both the State and Federal agencies providing benefits are able to ensure the funds are not being used in a way that violates the rules governing Special Needs Trusts.
Why Choose Us
Expertise
Morgan Law has specialized knowledge in estate law and has extensive experience in setting up First Party SPECIAL NEEDS TRUSTs. They understand the complexities of Medicaid law and can ensure that your trust is set up correctly.
Ongoing Support
After your trust is set up, Morgan Law continues to provide support. They can help you understand how to manage your trust and can provide advice on any issues that may arise.
Ongoing Guidance
Our commitment extends beyond the setup, providing ongoing guidance for trust administration to ensure continued alignment with the evolving needs of the individual. We offer no-cost document reviews, encouraging regular check-ins to ensure the Utah Special Needs Trust remains tailored to our clients’ needs.
Personalized Service
Morgan Law provides personalized service, taking the time to understand your specific needs and goals, and tailoring the trust accordingly.
Peace Of Mind
Perhaps the most important reason to choose Morgan Law is the peace of mind that comes from knowing your First Party SPECIAL NEEDS TRUST has been set up correctly, in accordance with all relevant laws and regulations. You can rest easy knowing that your assets are protected and that you have a team of professionals ready to assist you with any questions or issues that may arise.
Convenience
At Morgan Law, we never charge to chat. We offer in home or office visits. Our goal is always to empower our clients, not to pitch them things they don’t need. Please feel free to reach out, we are here to help.
In Conclusion
In conclusion, a First Party Special Needs Trust can provide significant benefits, including asset protection, preservation of government benefits, and enhanced quality of life. However, setting up a First Party Special Needs Trust is a complex process that requires specialized knowledge and experience. Morgan Law has both, making us an excellent choice for anyone considering setting up a First Party Special Needs Trust.
