In our office, we routinely assist individuals with disabilities or their families in creating first party special needs trusts (SNTs). This article explains the background on first party SNTs, the options available, and our process.

Background

To understand SNTs, let’s use the example of Jane Smith. Jane is 30 years old, and is physically healthy but has never been able to work or live independently due to an autism spectrum disorder. Jane lives in a group home, and receives SSI and Medicaid (MA). Jane’s father, John Smith, is guardian of her person and estate.

Jane’s grandmother Jill, who has always been close to her, names Jane as a beneficiary on a life insurance policy. At Jill’s death, Jane now becomes entitled to $100,000 of life insurance proceeds. What options are available to Jane (and John)?