Special Needs Trusts & Persons With Disabilities

We are Utah’s leading law firm in drafting and administering both “first party” and “third party” special needs trusts.

“First Party” Special Needs Trusts

 “First Party” Special Needs Trusts enable individuals with disabilities retain government benefits eligibility (Supplemental Security Income, Medicaid, Section 8 housing assistance) even though the individual has received, or is entitled to receive, funds that would otherwise disqualify them from such benefits.  Typical sources of such funds include personal injury judgments or settlements, inheritances distributed directly to the individual, lump sum Social Security overpayments, and other funds belonging directly to the recipient with disabilities.

We work closely with a number of personal injury attorneys throughout the State of Utah to assist their clients with disabilities retain government benefits eligibility.

“First Party” special needs trusts are particularly complicated to draft and administer.  They must comply with technical federal and state statutes and regulations.  Upon the death of the trust beneficiary, the funds remaining in the trust must first be applied to repay the State of Utah the value of services provided the beneficiary by Medicaid.  For this reason, such trusts are sometimes referred to as “payback” trusts.

“Third Party” Special Needs Trusts

“Third Party” Special Needs Trusts differ in two important ways from “first party” special needs trusts.  First, the funds at issue belong to someone else, such as a parent, grandparent, sibling, or other grantor, rather than belonging directly to the beneficiary with disabilities.  Second, since the funds at issue do not belong directly to the beneficiary, there is no requirement that the State be repaid upon the death of the beneficiary for the value of Medicaid services provided to the beneficiary during life.

To download our brochure, “Estate Planning, Special Needs Trusts, and Guardianship & Conservatorship Services”, click here.