Self-Funded Special Needs Trust

With special needs planning, the creation of a Special Needs Trust (or Supplemental Needs Trust) can help guarantee the security of the assets, benefits, and the overall well-being of an individual with special needs while keeping them eligible for public benefits. A Self-Funded Special Needs Trust (SF-SNT) differs from a Third-Party Funded Special Needs Trust (TPF-SNT) and a Pooled Special Needs Trust in North Carolina.

How do I create a Self-Funded Special Needs Trust?

A Self-Funded Special Needs Trust, sometimes referred to as a “Self-Settled Supplemental Needs Trust” or (d)(4)(A) Trust, is funded with the assets of the individual with special needs.  It can be funded with:

  • Social Security back payments,
  • Personal assets,
  • Inheritances received outright,
  • Personal injury settlements, and
  • Divorce settlements.

There are several additional requirements imposed on a Self-Funded Special Needs Trust that are not required of Third-Party Funded Special Needs Trust.  Until recent legislation in December 2016, a trust beneficiary could not create this type of Trust for himself.  One important requirement of a Self-Funded Special Needs Trust is that it must include language, which takes effect upon the termination of the Trust, to reimburse Medicaid agencies an amount equal to the Medicaid provided on behalf of the beneficiary during his lifetime, which is limited to the amount of monies remaining in the Trust.

The experienced Charlotte Elder Law and Special Needs Planning attorneys at Weaver, Bennett & Bland can help you with special needs planning and creating self-funded special needs trusts in North Carolina or South Carolina. Contact us today at (704) 844-1400 to schedule a consultation.