• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Unsworth LaPlante, PLLC

Vermont Estate Planning Attorneys

Vermont: (802) 879-7133

Attend A Free Workshop
  • Home
  • Our Firm
    • About Our Firm
    • Meet Our Team
    • What to Expect When Working with Us
  • Services
    • Estate Planning
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Medicaid Planning & Elder Law
    • Pet Planning
    • Special Needs Planning
    • Trust Administration
    • Young Families Planning
  • Resources
    • Articles
    • Elder Law Reports
    • Elder Law Resources
      • Burlington
      • Montpelier
      • Rutland
      • St. Johnsbury
      • White River Junction
    • Estate And Gift Tax Figures
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Elder Law
      • Estate and Gift Tax
      • Estate Planning
      • Estate Planning for Blended Families
      • Estate Planning for Parents
      • FAQs for Families Without an Estate Plan
      • Incapacity Planning
      • In-Home Elder Care FAQs
      • IRA & Retirement Planning
      • Gift, Estate, and Inheritance Taxes
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Medicaid
      • Philanthropy and Estate Planning
      • Planning for Long-Term Care
      • Pet Planning
      • Revocable Living Trust FAQs
      • Special Needs Planning
      • Trust Administration
      • Trusts
      • Wills
    • Is Your Estate Plan Outdated?
    • Medicaid Resources
      • Medicaid Analysis Worksheet
      • Medicaid Guide
      • Vermont Medicaid
    • Newsletters
    • Presentations
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Estate Planning for Niches
    • SECURE Act
    • Top Estate Planning Techniques
  • Webinars/Seminars
  • Reviews
    • Our Reviews
    • Review Us
  • BLOG
  • Contact
Home » Understanding Special Needs Trusts

Understanding Special Needs Trusts

August 25, 2014 by Ellen LaPlante

Estate planning looks different to everyone. While the collective process is important, an experienced estate planning attorney will be able to discern what’s not needed as easily as what should be included. For some a supplemental needs trust, or special needs trust, as it’s sometimes referred to, plays an important role for those with family members who have long term needs or who are disabled. This legal document is sometimes part of a client’s last will and testament; other times, it’s treated as a confined event or need outside of estate planning. Only in the past two decades have they been recognized by Congress, though they’ve been used for many years. These trusts enable a person with a mental or physical disability, or with someone with a chronic illness, to have resources protected for his or her current and future care. In most instances, when they’re properly prepared, these resources aren’t considered assets for the purpose of qualifying for any type of government assistance. This is one reason why a qualified estate planning or Medicaid attorney is so important. Special needs trusts can include – though they’re not limited to:

  • Supplemental Security Income, or SSI
  • Medicaid
  • Housing subsidies, and more

In order to qualify for a supplemental or special needs trust, the person must be deemed impoverished. This happens provided his personal assets do not exceed $2,000. It’s important to understand that the assets in the trust do not apply to the $2,000 limit. The trust is designed to cover those needs that any government subsidies do not provide. Many assume these trusts are designed to cover only the necessities; in fact, they’re used to better the lives of those who rely on them. The assets can be used for travel, dinners, movies and much more.

There are Medicaid rules that say these trusts can be used for very narrow purposes, it’s important each person understands what that means.  There are no restrictions for those wishing to modify their home or buy a home with easier access for things such as wheelchairs. The trusts certainly cover those expenses. Similarly, there are certain “food purchases” that are not allowed; however, dinner parties, vacations and entertainments are permitted. As mentioned, these have been recognized by Congress for just twenty years.

When Congress put the law into place, it did so through an exception for Omnibus Budget and Reconciliation Act, or OBRA. Through this avenue, the approved use of these trusts widened to include anyone – even those under the age of 65. It’s also important to note that Supplemental Needs Trusts, even if they’re part of an estate plan, are distanced via its own Federal Identification Number (Employer Identification Number) issued by the IRS. That FIN can be either the beneficiary or grantor’s social security number. They’re designed to be irrevocable, which is yet one more reason why an attorney is strongly recommended. Amendments to the trust are sometimes allowed, but it depends on each case, state laws and any changes to federal laws. To learn more about these important trusts, contact our office. We’ll explain their uses, any potential “roadblocks” and will answer all of your questions.

  • Author
  • Recent Posts
Ellen LaPlante
Ellen LaPlante
Ellen LaPlante is an attorney whose mission is to provide clients with guidance in Estate Planning, Elder Law, and Medicaid Preparation. She is barred in Vermont and New York. Ellen helps clients put together unique estate plans, including assistance with Trusts, Wills, Powers of Attorney, and Advance Directives. She also works with clients on Medicaid Planning and qualifying for Medicaid assistance.
Ellen LaPlante
Latest posts by Ellen LaPlante (see all)
  • How to Apply for Senior Medicaid in Vermont - December 11, 2022
  • Planning for the “Silver Tsunami” - November 1, 2022
  • Discharge of Indebtedness Income and Student Loan Forgiveness - October 27, 2022

Filed Under: General

Other Articles You May Find Useful

Essex Junction elder law attorneys
What You Need to Know about Elder Abuse
Essex Junction Medicaid planning attorneys
How to Apply for Senior Medicaid in Vermont
Essex Junction Medicaid planning attorneys
Does My 401(k) Account Count for Medicaid Eligibility?
Essex Junction elder law attorney
Senior Care Options
Essex Junction estate planning attorney
Do I Need an Estate Plan If I’m Single Without Children?
Essex Junction elder law attorney
How to Pick the Right Nursing Home

Primary Sidebar

Elder Law and Medicaid Planning Attorneys

Unsworth LaPlante, PLC

DOWNLOAD OUR FREE ESTATE PLANNING WORKSHEET

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

  • This field is for validation purposes and should be left unchanged.

Follow Us

  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
  • YouTube

Blog Subscription

Sign up to Unsworth LaPlante's estate planning blog to receive all the latest news and updates.

  • This field is for validation purposes and should be left unchanged.

Essex Junction, VT

26 Railroad Ave
Essex Junction, VT 05452
United States (US)
Phone: (802) 879-7133
Fax: (802) 879-0408

Map

unsworth_sidbr_map

Office Hours

Monday8:00 AM - 4:00 PM
Tuesday8:00 AM - 4:00 PM
Wednesday8:00 AM - 4:00 PM
Thursday8:00 AM - 4:00 PM

Footer

footer-logo
  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
  • YouTube

The information on this Vermont Attorneys & Lawyers / Law Firm website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. This information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

American Academy of Estate Planning Attorneys, Inc. Privacy Policy | Contact Us | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys

© 2023 American Academy of Estate Planning Attorneys, Inc.