The Relevance of Special Needs Trust in Maryland: Protect Your Loved One's Future

In the ever-evolving landscape of estate planning, one facet that garners significant attention is the Special Needs Trust. Here at Stouffer Legal, we've seen an uptick in inquiries around special needs trusts, specifically in Maryland. Therefore, we aim to provide an informative piece discussing what a 'special needs trust' or a 'supplemental needs trust' means, and why it's incredibly important for the future of your loved ones with disabilities.

What Is a Special Needs Trust?

A Special Needs Trust (SNT), also known as a Supplemental Needs Trust, is a distinct type of legal arrangement that allows a physically or mentally disabled or chronically ill person to receive income without reducing their eligibility for the public assistance disability benefits provided by Social Security, Supplemental Security Income, Medicare, or Medicaid.

In essence, a Special Needs Trust in Maryland is designed to enhance the quality of life for your loved one with special needs, while concurrently preserving their access to essential state and federal benefit programs. The intricacies of estate planning laws are complex, but with our dedicated team's expertise in Maryland's testamentary special needs trust, d4a trusts, and standalone special needs trusts, we strive to ensure that your family members continue to receive the benefits they deserve.

The Relevance of a Special Needs Trust

The question arises—why a Trust? Why is it relevant to your estate planning strategy? Primarily, a Special Needs Trust is a vehicle that ensures the long-term care and support for a disabled family member.

One common misconception about public assistance programs is that they cover all expenses a disabled person may incur. In reality, while these entitlement programs provide for basic needs like food, housing, and healthcare, they often fall short in offering additional amenities that could greatly enhance a person's quality of life. This might include therapeutic activities, transportation, personal care attendants, and other special equipment.

By setting up a Special Needs Trust in Maryland, you are effectively bridging this gap. The trust is specifically designed to supplement, not supplant, government benefits, meaning it provides for those 'extras' not covered by public assistance, thereby enriching your loved one's life without jeopardizing their benefit eligibility.

Categories of Special Needs Trusts

In Maryland, you have the option of establishing a testamentary special needs trust, a d4a trust, or a standalone special needs trust. Each type serves a distinct purpose.

• Testamentary Special Needs Trust: This type of trust is incorporated into a will and becomes effective upon the death of the person making the will. The testamentary SNT serves to ensure that a loved one with special needs retains eligibility for government assistance after the will-maker's death. The downside of planning through a will is the requirement that the will be validated through the Probate process.
• d4a Trust: Named after its federal statutory authorization (42 U.S.C. § 1396p(d)(4)(A)), this trust type is ideal for individuals under 65 with disabilities. It's funded with the beneficiary's assets and can preserve eligibility for benefits even if the beneficiary has excess resources or income. Generally these trusts require notice and payback to the benefits provider upon the death of the trust beneficiary or earlier termination of the trust.
• Standalone Special Needs Trust: As the name implies, this trust operates independently of a will. It can be funded during the grantor's lifetime, providing immediate benefits to the individual with special needs.

Making the Right Decision

Deciding to establish a Special Needs Trust in Maryland is a significant decision that requires careful thought and planning. It's crucial to align the trust with your loved one's unique needs, lifestyle, and long-term objectives.

At Stouffer Legal, we specialize in Special Needs Trusts in Maryland and are passionate about protecting the entitlement programs your family members may be on.

Learn more about Special Needs Trusts. Visit https://www.stoufferlegal.com/steps-to-estate-planning-in-baltimore-maryland-stouffer-legal