Special Needs Trusts in Texas: Protecting Loved Ones with Disabilities
Special Needs Trusts
Providing Long-Term Financial Security for Your Loved One
Caring for a loved one with special needs involves long-term financial planning to ensure they have the resources they need while preserving access to essential government benefits like Medicaid and Supplemental Security Income (SSI). Without proper planning, an inheritance or financial gift could unintentionally disqualify them from critical assistance programs.
At Redding Law Office, we help families create Special Needs Trusts (SNTs) that provide financial support without jeopardizing eligibility for government benefits. We take a compassionate, tailored approach to ensure your loved one’s future is secure while keeping their best interests at heart.
What We Do in Special Needs Trusts
First-Party Special Needs Trusts
Protect a disabled individual’s personal assets, such as legal settlements or inheritances, while preserving government benefit eligibility.
Third-Party Special Needs Trusts
Allow family members to set aside assets for a loved one’s future care without affecting public assistance programs.
Pooled Special Needs Trusts
Provide professional trust management for smaller estates by pooling resources while maintaining separate beneficiary accounts.
Trustee Guidance & Administration
Ensure trustees understand their responsibilities and comply with legal requirements.
Long-Term Care & Medicaid Planning
Help structure assets in a way that secures care options while maintaining financial stability.
What is the purpose of a Special Needs Trust?
A Special Needs Trust protects assets for a disabled individual while preserving their eligibility for government benefits such as Medicaid and SSI.
Can a Special Needs Trust be used for anything?
Funds in an SNT can be used for housing, education, transportation, medical care, personal items, and enrichment activities, but not for direct cash disbursements to the beneficiary.
Who can manage a Special Needs Trust?
A trustee—such as a family member, professional fiduciary, or financial institution—manages the trust and ensures funds are used appropriately for the beneficiary’s needs.
What happens to the funds in a Special Needs Trust when the beneficiary passes away?
It depends on the trust type. A first-party SNT may require Medicaid reimbursement, while a third-party SNT allows remaining assets to be distributed according to the trust creator’s wishes.
Do I need an attorney to create a Special Needs Trust?
Yes. Special Needs Trusts must comply with strict legal and financial regulations to be valid and protect eligibility for government assistance.