Special Needs Trusts in Michigan
Protecting Benefits While Providing Long-Term Financial Security
Estate Planning Partners of Michigan PLLC
Lansing, Michigan
What Is a Special Needs Trust?
A Special Needs Trust (SNT) is a specialized estate planning tool designed to provide financial support for a person with a disability without disqualifying them from important government benefits such as Supplemental Security Income (SSI) and Medicaid.
Many individuals with disabilities rely on needs-based benefits to pay for medical care, housing, and daily living expenses. A properly structured Special Needs Trust allows families to enhance quality of life while preserving eligibility for those programs.
Who Should Consider a Special Needs Trust?
A Special Needs Trust may be appropriate if you have a child, adult child, or loved one with a disability; a beneficiary currently receives or may receive SSI or Medicaid; or you want to leave assets without disrupting public benefits.
How a Special Needs Trust Works
Assets placed in a Special Needs Trust are owned by the trust and managed by a trustee. The trustee may use funds for approved supplemental expenses such as education, therapy, transportation, recreation, personal care items, and uncovered medical costs.
First-Party vs. Third-Party Special Needs Trusts
First-Party Special Needs Trusts
A First-Party Special Needs Trust is funded with assets that belong to the individual with a disability. These often include personal injury settlements, inheritances received directly, or Social Security back payments.
What a Single Estate Plan Can Include
A properly designed single estate plan may include a will or trust, medical power of attorney, financial power of attorney, health care directives, and guardian designations.
Key characteristics include strict compliance with Medicaid rules and a required Medicaid payback provision upon the beneficiary’s death.
Third-Party Special Needs Trusts
A Third-Party Special Needs Trust is funded with assets from parents, grandparents, or other loved ones. These trusts do not require Medicaid payback and allow remaining assets to be distributed to other family members.
Third-Party trusts are often the preferred planning option for families planning ahead.
Why the Difference Matters
Choosing the wrong type of Special Needs Trust—or failing to plan properly—can result in benefit loss, tax consequences, or state recovery claims. Proper planning ensures long-term stability and protection.
Why Choose Estate Planning Partners of Michigan PLLC?
Located in Lansing, Michigan, Estate Planning Partners of Michigan PLLC focuses exclusively on estate planning, elder law, Medicaid planning, trust maintenance, and special needs planning.
Schedule a Consultation
Contact Estate Planning Partners of Michigan PLLC today to learn whether a First-Party or Third-Party Special Needs Trust is right for your family.