SNT Rules & Structure
This type of special needs trust must be created for someone under age 65 using their own assets.
What is a first-party special needs trust?
This $2,000 limit is the maximum countable resource allowed for SSI eligibility for an individual.
What is the SSI resource limit?
This account allows eligible individuals with disabilities to save money without losing SSI, within limits.
What is an ABLE account?
A trustee buys a television directly for the beneficiary—this is generally considered this type of expense.
What is a permissible (non-countable) distribution?
This provision requires repayment to the state for Medicaid benefits after the beneficiary’s death.
What is the Medicaid payback provision?
This type of SNT does NOT require Medicaid payback at the beneficiary’s death.
What is a third-party special needs trust?
Giving this directly to a beneficiary from a trust can reduce SSI dollar-for-dollar.
What is cash?
This strategy avoids giving money outright and instead directs assets into a properly drafted SNT.
What is funding a special needs trust?
A trustee gives the beneficiary $500 in cash—this is likely to impact benefits in this way.
What is reducing SSI benefits?
This type of trust is managed by a nonprofit and allows multiple beneficiaries to pool resources.
What is a pooled special needs trust?
This key rule requires that distributions from an SNT be for the sole benefit of the beneficiary.
What is the sole benefit rule?
When a trust pays for rent, it may trigger this reduction in SSI benefits.
What is in-kind support and maintenance (ISM)?
This document provides guidance to trustees about the beneficiary’s preferences and needs.
What is a letter of intent?
A trust pays for a vacation with a caregiver—this is allowed if it meets this requirement.
What is the sole benefit rule?
This age is a key cutoff for creating and funding a first-party SNT without penalty.
What is age 65?
This party manages the trust and must follow strict fiduciary and public benefit rules.
Who is the trustee?
This type of benefit, unlike SSI, is not means-tested but may still interact with trust planning.
What is Social Security Disability Insurance (SSDI)?
This professional is often brought in to ensure proper trust administration and compliance.
What is a professional trustee?
A beneficiary receives an inheritance outright—this will likely cause this immediate issue.
What is loss of means-tested benefits?
This rule requires trustees to carefully avoid payments for shelter when possible.
What is avoiding in-kind support and maintenance (ISM)?
This mistake—failing to properly draft the trust—can cause immediate disqualification from benefits.
What is a non-compliant trust?
This is the consequence of exceeding resource limits due to improper trust distributions.
What is loss of eligibility for benefits?
This planning mistake happens when well-meaning family members leave assets directly to the individual.
What is disinheriting the trust (or failing to plan properly)?
A trustee pays rent directly to a landlord—this triggers this SSI rule.
What is in-kind support and maintenance (ISM)?
This overarching responsibility requires trustees to balance quality of life with benefit preservation.
What is proper trust administration?