mom with special needs son

Special Needs Trusts

Planning for individuals with a disability has changed dramatically. With approximately one in every eight people in the United States considered disabled, planning has become much more prevalent and complicated than it used to be. Considerations include government programs, utilizing exempt resources like single premium annuities, ABLE savings accounts and Special Needs Trusts.

One of our administration specialties is Special Needs Trusts. With a track record of more than four decades, Prairie Trust administers more Special Needs Trusts than any other Wisconsin based trust company, including Third Party and First Party Special Needs Trusts, and the Community Special Needs Trusts for Life Navigators and ARCH.

Third Party Trusts

Funded with assets that never belonged to the beneficiary.
  • Inheritance or gift from mom, dad, a relative or friend
  • Life Insurance - Name the trust as beneficiary
Upon death of beneficiary, any funds remaining will be paid to the remainder beneficiaries named in trust instrument.

Self-Settled Trusts (First Party Trusts)

Funded entirely with assets that belong to the individual with a disability.
  • Personal injury settlement
  • SSI back payment
  • Outright inheritance from mom, dad, a relative or friend
Upon death of beneficiary, any funds remaining need to be paid back to the State Medicaid program first.

Community Pooled Trusts

Medicaid and SSI law permit “pooled trusts” for beneficiaries with special needs. Such trusts pool the resources of many beneficiaries; investments are managed by a non-profit association that typically hires a trustee to administer.

Unlike individual disability trusts, which may be created only for those under age 65, some pooled trusts may allow for beneficiaries of any age and may be created by the beneficiary herself.

At beneficiary’s death, the state does not have to be repaid for its Medicaid expenses. Instead, funds are generally kept in a retained fund for the benefit of other disabled beneficiaries.

Stand-Alone SNTs: First and Third Party Trusts

Attorney drafts document naming Prairie Trust as trustee.
  • Choice and flexibility of administration.
  • Prairie can handle all aspects of administration and management of SNT.
  • Prairie can also work with an outside investment advisor and directing and delegating parties.

Contact us today! 

Nancy Schoenberg

Nancy Schoenberg

Vice President - Senior Trust Administrator
(262) 953-2438