Fast Facts on Special Needs Trusts (SNTs) 

Macintosh HD:Users:mechan01:Desktop:KATC Logo.jpg 


A special needs trust (SNT) is a trust used to keep benefits of the person with disabilities, or beneficiary, 
safe. Examples of potentially protected benefits include those from SSA, HUD, and Medicaid. In many 
cases, assets in the trust are not counted against the person with the disability that could render the person 
ineligible to receive benefits. A trustee makes distributions in a way that does not affect the beneficiary’s 
benefits. These assets are then available to supplement the beneficiary’s care or services, which are not 
provided by public assistance programs. 

 

A SNT may be funded by someone else’s money (parent’s money, inheritance, etc.), or through the 
beneficiary’s funds or assets. 

 

It is important to consult with a qualified attorney to set up the SNT. If the trust is set up improperly, 
assets may affect benefits. 

 

Areas typically included in SNTs… 

 

Declaration of Trust; appointment of Trustee 
and Successor Trustee(s) 

Definitions; Purpose and Intent of Trust; Assets of 
the Trust 

Amendments 

Medicaid reimbursement 

Provisions tailored to beneficiary; Spendthrift 
clause 

Family/Home Living Arrangements 

Ultimate distribution 

Powers and duties of Trustee; Removal of Trustee 

Tax provisions; generation skipping 

Advisory Committee/Trust Protector 

Misc; signatures and attachments 

 



 

Recommendations 

1. Who will be the trustee? 
2. Who will help me set up the SNT? 
3. How will the SNT be funded? 


 

For more information 

 

Hope for Tomorrow www.kyhope.org 

Kentucky Bar Association www.kybar.org 

Special Needs Alliance www.specialneedsalliance.com 

Kentucky Autism Training Center www.kyautism.com