Glossary

Special Needs Trust

Definition
A trust that holds assets for a person with disabilities without disqualifying them from means-tested benefits like Medicaid and SSI.

Special needs trusts (SNTs) come in three main flavors: first-party (funded with the beneficiary's own money), third-party (funded by family), and pooled (administered by a nonprofit). Each has different rules around Medicaid payback and use of funds.

An SNT must be drafted carefully so distributions don't replace benefits. Most families need an attorney experienced in special needs planning.

Related terms

  • Letter of Intent — A non-binding document that gives guidance to family and caregivers about your wishes for personal items, family history, and care preferences.

Sources

Sandwich is a directory and information site. This glossary is not legal, medical, or financial advice. For decisions that affect your family, consult a licensed professional. Editorial policy.

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