Special Needs Trust Attorneys in South Carolina

Planning for the future often involves detailed financial, legal, and emotional considerations, and this holds particularly true when providing for loved ones with disabilities. Special Needs Trusts (SNTs) are powerful legal tools that help families care for individuals with special needs by ensuring their quality of life without jeopardizing access to essential government benefits, such as Supplemental Security Income (SSI) or Medicaid. 

At Porter Law Firm, we understand the nuances of South Carolina estate planning laws and are here to help you create a trust tailored to your family’s unique needs. Our legal team will explore what Special Needs Trusts are, their benefits, and the various types available in South Carolina.

Together, we can craft a solid plan that fits the unique circumstances of you and your family. Located in Mount Pleasant, Charleston, Summerville, and Hilton Head, our firm serves clients throughout South Carolina. Schedule a free consultation today to learn more.  

What Is a Special Needs Trust?

A Special Needs Trust is a legal arrangement designed to provide financial security for individuals with disabilities. It allows a person, referred to as the “beneficiary,” to receive supplemental income to enhance their life while preserving eligibility for crucial government assistance programs. 

South Carolina families often turn to Special Needs Trusts to supplement the beneficiary's quality of life without disrupting government aid, manage assets effectively without placing unnecessary tax burdens on families, and provide long-term care and resources for loved ones when family members are no longer able. 

How a Special Needs Trust Works

Assets placed in a Special Needs Trust are managed by a trustee, who is responsible for distributing funds to benefit the individual while adhering to the trust terms. Trustees in South Carolina must operate under a fiduciary duty, meaning they are legally obligated to act in the best interest of the beneficiary. Funds from the trust can typically be used for expenses like: 

• Medical expenses not covered by Medicaid or insurance. 

• Educational and vocational training opportunities. 

• Personal care attendants or therapy services. 

• Hobbies, vacations, and other activities that improve the beneficiary’s well-being. 

• Assistive technology or adaptive equipment. 

The dependable attorneys at Porter Law Firm will gladly assist trustees with their duties. Together, we can analyze your situation and craft a solid plan for a smooth transition. 

Types of Special Needs Trusts

Depending on family circumstances and the source of assets being managed, South Carolina recognizes several types of Special Needs Trusts. Each serves a distinct purpose and is suited to specific situations. 

1. First-Party Special Needs Trust 

A First-Party Special Needs Trust, also known as a "self-settled trust," is funded using assets belonging to the individual with disabilities. These funds often come from sources such as personal injury settlements, inheritance, or direct savings. Key considerations include: 

• The trust must name the state of South Carolina as the primary beneficiary for the recovery of Medicaid costs upon the beneficiary’s death. 

• The beneficiary must be under the age of 65 at the time the trust is created and funded. 

• These trusts are irrevocable, meaning they cannot be reversed after being established. 

2. Third-Party Special Needs Trust 

A Third-Party Special Needs Trust is funded with resources belonging to someone other than the individual with special needs, often a parent, grandparent, or another family member. These are commonly set up as part of an estate plan. Highlights of Third-Party Special Needs Trusts include: 

• No Medicaid payback provision is required, allowing for leftover funds to be passed to other family members or heirs. 

• They are commonly established through wills or living trusts. 

• They provide flexibility for creating long-term care provisions that align with the family's intentions. 

3. Pooled Special Needs Trust 

A Pooled Special Needs Trust is managed by a nonprofit organization that pools the resources of multiple beneficiaries while maintaining separate accounts for each. This option is often chosen when there is a limited amount of assets available to fund the trust. Key features include: 

• Lower administrative costs due to pooled resources. 

• Professional asset management by the nonprofit. 

• Availability to individuals of all ages, although Medicaid reimbursement rules still apply for some beneficiaries. 

4. Miller Trust (Qualified Income Trust) 

Specific to South Carolina Medicaid planning, a Miller Trust is a unique type of trust designed for individuals whose income exceeds Medicaid eligibility limits but who still require Medicaid assistance to pay for long-term care. Important points to note for Miller Trusts: 

• It is primarily used to funnel excess income to qualify for Medicaid. 

• Funds are restricted to covering the cost of care or medical needs. 

• Unused funds in the trust may transfer to the South Carolina Medicaid program upon the beneficiary’s death. 

Why Setting Up a Special Needs Trust Matters

Establishing a Special Needs Trust provides peace of mind, knowing that your loved one will have financial resources to enjoy a higher quality of life without endangering their eligibility for crucial support services. South Carolina estate planning laws are confusing; collaborating with a seasoned attorney can verify that your trust is legally sound and your objectives are met. 

Choosing the Right Trustee

The choice of trustee is critical for the smooth operation of the trust.

A trustee should: 

• Fully understand the rules governing Special Needs Trusts in South Carolina. 

• Have the capability to manage funds responsibly and ethically. 

• Communicate clearly with both the beneficiary and family members. 

• Ensure compliance with Medicaid and SSI reporting requirements. 

Often, families elect to appoint either a trusted relative or a professional fiduciary, such as a corporate trustee or attorney, to fulfill this important role. 

Special Needs Trust Attorneys Helping South Carolina Residents

Creating and managing a Special Needs Trust can feel overwhelming, but you don’t have to go through it alone. At Porter Law Firm, we specialize in assisting South Carolina families with estate planning tailored to their unique needs. Our experienced attorneys can guide you every step of the way—from selecting the correct type of trust to managing applicable tax and Medicaid considerations. 

Building a secure future for your loved ones starts with creating the right legal foundation. Contact Porter Law Firm today to schedule a consultation. Together, we can safeguard your family’s peace of mind and create a long-lasting legacy of care and compassion.