If you’re raising a child with a disability, chances are you’ve asked yourself some version of this question:
“What will happen to my child when I’m gone?”
It’s one of the hardest questions any parent can face. And while there’s no perfect answer, there is a way to plan with confidence. A Special Needs Trust (SNT) is a powerful tool that can help you protect your child’s future without risking their access to essential benefits like Medicaid, Supplemental Security Income (SSI), and housing support.
At First Maryland Disability Trust (FMDT), we’ve helped thousands of Maryland families plan for what’s next. If you’re just starting to map out your child’s future, or feeling overwhelmed, you’re not alone. This article will explain the basics of Special Needs Trusts in plain language, so you can make the best choices for your loved one.
What Is a Special Needs Trust?
A Special Needs Trust is a legal tool that holds money or property for a person with a disability without affecting their eligibility for public benefits.
Let’s say a grandparent wants to leave an inheritance, your child receives a legal settlement, or you simply want to set money aside for their future. If you give that money directly to your child, they could lose access to programs like Medicaid or SSI, which have strict income and asset limits.
But if that money goes into a properly written Special Needs Trust, it can be used to pay for things your child needs without disqualifying them from the programs that cover housing, healthcare, and support services.
What Can the Trust Pay For?
The money in a Special Needs Trust can be used for a wide range of things that improve your child’s quality of life, including, but not limited to:
- Clothing, furniture, or home modifications
- Therapy not covered by insurance
- Technology, internet, and devices
- Vacations and transportation
- Education and job training
- A personal aide or advocate
The trust can’t pay for food, housing, or medical care directly (because those are covered by public benefits), but it can cover almost everything else.
Who Controls the Money?
A Special Needs Trust is managed by a Trustee, someone who’s legally responsible for handling the money and spending it on your child’s behalf.
That trustee can be a person you know, like a sibling or family friend. But often it’s better to choose a professional trustee who understands disability benefits and the rules around them. That’s where FMDT comes in.
How FMDT Helps
First Maryland Disability Trust is a nonprofit organization dedicated to helping families like yours. We offer:
- Easy-to-understand options for 1st-party and 3rd-party Special Needs Trusts
- Affordable pooled trust options for families without millions to leave
- Trustee services that protect your child’s benefits while allowing funds to be used wisely
- Personalized support from experts who know the Maryland system
We also offer Family Escrow accounts to help manage daily finances, Representative Payee services for beneficiaries receiving Social Security benefits, and expert support navigating Medicaid Waivers, SSI, and SSDI. We’re here to help you make sense of it all. Whether you’re planning ahead or dealing with a crisis now, we’re here to help.
When Should You Set One Up?
The best time to set up a Special Needs Trust is before money changes hands.
- Planning an estate? Now is the time to include a special needs trust in your will.
- Expecting an inheritance or settlement? Make sure the money goes into a special needs trust first.
- Getting older or facing health concerns? You can name a trustee now to take over later.
It’s never too early—or too late—to start the conversation.
Let’s Talk
We know this can feel overwhelming. You don’t need to figure it all out on your own. FMDT is here to help you protect your child, preserve their benefits, and plan for a future where they’re safe and supported.
Call us at 410-296-4408
Visit us at www.firstmdtrust.org
You’ve spent your life advocating for your child. We’ll be here when you need someone to carry that torch.