If it is a third party SNT, yes. Anyone over the age of 18 can open and/or contribute to an SNT for the benefit of someone receiving government benefits.

If you are creating an inter vivos SNT (created by a living person for the benefit of another person), it should be partially funded. Typically, it can be the minimum amount required to open a bank account. You can also fund the SNT through a life insurance policy, i.e., name the SNT as the beneficiary of the life insurance policy. Or, you can even use other assets to fund the SNT like business interest, stocks, bonds, real estate, etc.

Estate plans should be looked at every 5-10 years or upon a significant life event, i.e., divorce, fiduciary appointment passes, certain changes in law, etc.

For a third party SNT, you designate in the Trust Agreement who you want inheriting the money upon the death of the disabled beneficiary. In many cases, the trust terminates upon the death of the disabled beneficiary and the trust estate either gets distributed according to the trust agreement and the designated secondary beneficiaries or it falls into the decedent’s estate. I do not recommend letting the latter happen. For a first party SNT, there is a mandatory Medicaid payback provision.

It is best to leave the distributions to the beneficiary fully discretionary (Trustee has complete control); however, I recommend putting examples in the Trust Agreement, i.e., certain specialty van, etc.

You MAY be able to in certain states so long as the Medicaid reporting requirements are followed. If someone leaves money outright to a person receiving government benefits, there are ways to fix it, but you will want to contact an attorney ASAP because it varies by state law and particular Medicaid program. I strongly recommend setting up a third party SNT now so that you don’t run into any problems like this where you may have to create a first party SNT, which is funded by the child’s own inheritance money because then it is subject to the Medicaid payback requirement. At least if there IS a third party SNT already set up, it is a better argument to have grandma’s bequest paid out to the SNT instead of the disabled person outright.

Your Will needs to list an Executor. The trust needs to have a Trustee and you should have 2-3 alternatives/back-ups in case the first designation passes away. If you do not have alternate Trustees willing to serve, you can elect to create a Pooled Trust where a nonprofit serves as Trustee or appoint a Corporate Trustee.

I would set it up now either through your Will or as a stand-alone. It depends on the attorney’s availability, but it shouldn’t take more than 2 meetings. Hire an attorney that understands how to fund the trust and has knowledge of the tax implications.

It is wise to get an attorney in your state to at least review it if you move. For example, there may be different reporting requirements. The variance in the laws is more about the administration of the trust and to be sure there are the required provisions in the Trust Agreement based on state law.

Do not use trust funds on anything that Medicaid or SSI pays for and do not give any funds to the special needs child/disabled person outright.

As a special needs mom and attorney, I would advise having a life insurance policy for your typical children and one for your special needs child through the third party SNT, if you are able to do so. There is no maximum amount for a special needs trust, but I would base it on the child’s current lifestyle and how you want that child to live throughout their life.

For a third party SNT, you designate in the Trust Agreement who you want inheriting the money upon the death of the disabled beneficiary. In many cases, the trust terminates upon the death of the disabled beneficiary and the trust estate either gets distributed according to the trust agreement and the designated secondary beneficiaries or it falls into the decedent’s estate. I do not recommend letting the latter happen. For a first party SNT and ABLE Account, there is a mandatory Medicaid payback provision.

It should be.

If you establish a third party SNT now or through your Will, then there is no requirement for state reimbursement, and you can leave the funds to whoever you want upon the death of the disabled person receiving benefits. The major difference between a third party SNT and an ABLE account is that with a third party SNT, the creator of the trust is someone other than the beneficiary and it’s funded by people other than the beneficiary. The ABLE account and first party SNT are used as accounts to protect money that is given to a disabled person outright and needs to be held in a separate account so that they do not lose their benefits; however, the ABLE account and first party SNT are subject to state reimbursement upon the death of the disabled person.

Unfortunately, yes so it is wise to get an attorney in your state to at least review it if you move. For example, there may be different reporting requirements. The variance in the laws are more about the administration of the trust and to be sure there are the required provisions in the Trust Agreement based on state law.

No. Although, it is strongly recommended to have a Will and an understanding of your estate plan, especially if you are a special needs parent.