In Oklahoma, a special needs trust (SNT), sometimes called a supplemental needs trust, is a legal tool designed to provide for the financial needs of a person with disabilities while preserving their eligibility for crucial government benefits like Medicaid and Supplemental Security Income (SSI). Setting up a special needs Trust requires that the estate plan is especially careful with the language so as to protect the ability of the beneficiary to claim means tested services.  

How an SNL Works in Oklahoma:

• The trust holds assets for the beneficiary (the person with disabilities). The assets can be assets that are currently in existence or that will come into existence in the future.  
• A trustee manages the trust funds and makes distributions for the beneficiary’s needs. Also, the trustee is picked by the trust maker. There are situations where two trustees or successor trustees are assigned.  
• The trust funds are used to supplement, not replace, government benefits. Thus, this means they can be used for things that government benefits don’t cover, like:
  • Medical expenses not covered by insurance  
  • Specialized equipment or therapies  
  • Education and vocational training  
  • Recreation and entertainment  
  • Personal care assistance

Types of Special Needs Trusts in Oklahoma:

• First-Party SNT: Funded with the beneficiary’s own assets (e.g., inheritance, personal injury settlement).
  • Important: In Oklahoma, these trusts must include a “payback” provision, meaning that when the beneficiary dies, Medicaid is reimbursed for the benefits paid during the beneficiary’s lifetime.  
• Third-Party SNT: Funded with assets from someone other than the beneficiary (e.g., parents, grandparents).
  • These trusts don’t have the “payback” requirement.

When to Consider a Special Needs Trust in Oklahoma:

• Receiving Government Benefits: If the person with disabilities relies on Medicaid or SSI, an SNT is essential to protect their eligibility.  
• Inheritance or Settlement: If the person with disabilities is likely to inherit money or receive a settlement, an SNT can prevent these funds from disqualifying them from benefits.  
• Long-Term Care: An SNT can help ensure that the person with disabilities has access to quality care and support throughout their life.  

Benefits of a Special Needs Trust:

• Protects Eligibility: Ensures the person with disabilities can continue receiving essential government benefits.  
• Enhances Quality of Life: Provides funds for needs and expenses not covered by government programs.  
• Offers Financial Security: Provides a secure financial safety net for the person with disabilities.  
• Professional Management: Ensures responsible management of the trust funds by a trustee.

Get Will and Trust Help In Rogers County:

Estate planning that works consists of many moving parts. It may be as simple as drafting a living will or a complex asset protection trust such as an irrevocable trust. For a plan that’s designed to avoid probate we can help you get it done. For a free consultation with an estate planning attorney in Rogers County call the Kania Law Office – Claremore attorneys at 918.379.4872