A special needs trust (SNT) is a legal arrangement that helps individuals with disabilities retain access to essential public benefits—such as Supplemental Security Income (SSI) and Medicaid—without jeopardizing their eligibility due to financial assets. At Holker Law Offices, PLLC, we are committed to assisting Minnesota families in planning for the long-term security and well-being of their loved ones with disabilities through thoughtful legal strategies like special needs trusts.

What Is a Special Needs Trust?

A special needs trust is a legal document that establishes a fiduciary relationship in which a trustee holds and manages assets for the benefit of a person with a disability. The main goal is to supplement, not replace, government benefits. These trusts allow for expenditures that improve quality of life—such as personal care attendants, education, transportation, and recreational activities—without affecting eligibility for public assistance programs.

Key Types of Special Needs Trusts

1. First-Party Special Needs Trust (Self-Settled SNT)
   Funded with assets that belong to the person with a disability, such as an inheritance or a personal injury settlement. This type of trust must include a Medicaid payback provision, meaning that any funds remaining upon the beneficiary’s death must be used to reimburse the state for Medicaid benefits received.
2. Third-Party Special Needs Trust
   Funded with assets belonging to someone other than the beneficiary, typically a parent or grandparent. These trusts do not require a Medicaid payback and are often used for estate planning purposes.
3. Pooled Trust
   Managed by nonprofit organizations, pooled trusts combine the resources of many beneficiaries for investment purposes, while still maintaining separate sub-accounts for each individual. These can be useful for individuals without family members available or willing to serve as trustee.

Why Choose a Special Needs Trust?

Without a special needs trust, any inheritance or financial gift can disqualify a person with a disability from public assistance programs. These trusts preserve eligibility while enabling a better quality of life. They also provide peace of mind for families by ensuring that there is a legal structure in place to care for their loved one after they are gone.

How Holker Law Offices, PLLC Can Help

Creating a special needs trust involves navigating complex legal requirements and benefit regulations. At Holker Law Offices, PLLC, we help Minnesota families structure these trusts in compliance with federal and state laws. Whether you need to fund a trust with an inheritance, a settlement, or plan for future care in your estate, we are here to guide you every step of the way.