Bethany Special Needs Planning Attorney

A special needs trust holds money for the benefit of a person with a disability without disqualifying them from means-tested public benefits like SSI or SoonerCare. Money left to that person outright, even with the best intentions, can immediately end their benefits. A properly drafted trust lets the funds supplement their life (therapies, equipment, recreation, housing supports) without replacing the public benefits they rely on.

Third-party trusts hold money that belongs to someone else (parents, grandparents) and is being left to benefit the person with the disability. They have no Medicaid payback at death. First-party trusts hold money that already belongs to the person with the disability. They generally must include a Medicaid payback provision at the beneficiary's death.

Yes, in some practical ways. Letters of intent guide future caregivers and trustees on what your child's life looks like, including church relationships and community supports. Some churches have ministries specifically for adults with disabilities. We don't manage the church relationships directly, but we draft the supporting documents in a way that anticipates a community-supported life rather than an institutional one.

Yes, and they often should. A third-party special needs trust funded by grandparents during life or at their death is a clean way to leave money to a grandchild with a disability without unintentionally disrupting benefits. We coordinate the grandparents' overall plan, the parents' plan, and the trust for the grandchild so they fit together.

Often the harder decision than drafting the trust. Family trustees know the beneficiary best but may lack experience with public-benefit rules. Professional trustees bring expertise but cost more. We frequently recommend a co-trustee structure: a family member who handles personal advocacy, paired with a professional trustee who handles administration and benefit-rule compliance.

Depends on the trust type. Third-party trusts pass to remainder beneficiaries the family designated. First-party trusts must reimburse the state for Medicaid services received during the beneficiary's life before any remainder can pass. Many Bethany families designate a remainder gift to the church or to a disability ministry as the final beneficiary; we draft those provisions carefully.

Quickly. Settlement funds received outright by a person on means-tested benefits can disqualify them within a month and trigger a long requalification process. The settlement should be directed into a properly drafted first-party special needs trust at the time it's paid out, not deposited into a regular account first.