Special Needs Trusts.
Protecting Benefits While Securing Futures.
What Is a Special Needs Trust?
A Special Needs Trust is a legal arrangement that holds and manages money for a person with a disability. It’s specifically designed to supplement—not replace—public benefits.
Funds in a properly drafted SNT do not count as income or assets when determining eligibility for:
Medicaid (MassHealth in Massachusetts)
Supplemental Security Income (SSI)
Other needs-based benefits
This means your loved one can still receive support for basic needs while benefiting from additional resources for things like:
Personal care attendants
Housing and utilities
Travel, education, and enrichment activities
Medical expenses not covered by insurance
Therapies, technology, and more
Who Needs a Special Needs Trust?
You may want to consider a Special Needs Trust if:
You have a child or adult family member with a disability
You want to leave money or property to them without affecting their benefits
You want to appoint someone to manage assets on their behalf
You want to ensure continued care without court involvement
Even well-intentioned gifts or inheritances can unintentionally disqualify someone from benefits. An SNT avoids that risk—while giving you control over how the funds are used and managed.
Types of Special Needs Trusts
There are two main types of Special Needs Trusts:
🔹 Third-Party Special Needs Trust
Funded with assets belonging to someone other than the person with a disability (e.g., a parent or grandparent)
Commonly used in estate plans to leave an inheritance or life insurance proceeds without affecting benefits
Does not require payback to the state after the beneficiary’s death
🔹 First-Party Special Needs Trust
Funded with the beneficiary’s own money (e.g., from a legal settlement or inheritance received outright)
Must meet specific legal criteria and include a Medicaid payback provision
Still protects eligibility for public benefits
We’ll help determine the right trust structure based on your family’s circumstances and goals.
How Poppy Legal Group Can Help
Special Needs Trusts require careful planning and precise language to comply with state and federal rules. At Poppy Legal Group, we combine legal knowledge with compassion—crafting trusts that protect your loved one, preserve their benefits, and honor your long-term vision.