SPECIAL NEEDS TRUSTS
Special Needs Trust Planning in Oregon & Washington
When a person with a disability may receive an inheritance, settlement, or other funds, families often have questions about how to provide support while considering public benefits and the person’s own goals.
A special needs trust, sometimes called a supplemental needs trust, may be one planning tool. Whether it fits depends on who owns and contributes the funds, the trust terms, the person’s circumstances, and the rules of each benefit program.
Fortis Planning helps families understand the planning questions and coordinate next steps with qualified professionals. An Oregon-licensed attorney should advise on the trust, and the relevant benefits agencies determine eligibility.
Based in Oregon • Serving families in many states across the U.S.
SPECIAL NEEDS TRUSTS
Special Needs Trust Planning in Oregon & Washington
When a person with a disability may receive an inheritance, settlement, or other funds, families often have questions about how to provide support while considering public benefits and the person’s own goals.
A special needs trust, sometimes called a supplemental needs trust, may be one planning tool. Whether it fits depends on who owns and contributes the funds, the trust terms, the person’s circumstances, and the rules of each benefit program.
Fortis Planning helps families understand the planning questions and coordinate next steps with qualified professionals. An Oregon-licensed attorney should advise on the trust, and the relevant benefits agencies determine eligibility.
Based in Oregon • Serving families in many states across the U.S.
ESTATE PLANNING EDUCATION & COORDINATION
Trust-Based Estate Planning for Families Who Want Clarity and Control
We come to you when signatures matter.
Fortis Planning helps families understand and coordinate trusts, wills, powers of attorney, and legacy planning: with a clear, educational process designed to protect the people and property that matter most.
Based in Oregon • Serving families in many states across the U.S.
ESTATE PLANNING EDUCATION & COORDINATION
Trust-Based Estate Planning for Families Who Want Clarity and Control
We come to you when signatures matter.
Fortis Planning helps families understand and coordinate trusts, wills, powers of attorney, and legacy planning: with a clear, educational process designed to protect the people and property that matter most.
Based in Oregon • Serving families in many states across the U.S.
TRUST BASICS
What Is a Special Needs Trust?
A special needs trust is a trust intended to hold and manage assets for a person with a disability under terms designed to address supplemental needs and the rules of applicable benefit programs. A trustee manages the trust property under the trust document.
A trust is not a guarantee that someone will qualify for, keep, or receive a particular public benefit. SSI and Medicaid have separate rules, and a trust’s treatment depends on its exact terms, funding, administration, applicable law, and the facts of the person’s case.
The person at the center of the plan should be included in decisions as much as possible and appropriate. Planning should reflect their preferences, support needs, relationships, and long-term goals.
TRUST TYPES
First-Party, Third-Party, and Pooled Trusts
The source of the money is one of the first questions an attorney will ask. “First-party” generally refers to assets belonging to the beneficiary; “third-party” generally means assets contributed by someone else. Pooled trusts are administered through a nonprofit master trust with separate beneficiary accounts.
First-party special needs trust
A first-party trust is funded with assets belonging to the person with a disability, such as the person’s own savings, an inheritance received directly, or settlement proceeds. Federal rules for a qualifying first-party trust include detailed requirements, including disability and age criteria, who may establish the trust, and a Medicaid reimbursement provision at the beneficiary’s death. Requirements and exceptions are technical and must be reviewed for the specific facts.
Third-party special needs trust
A third-party trust is funded with assets belonging to someone other than the beneficiary, such as a parent or another family member. The trust terms can address future gifts, inheritances, or other contributions. The rules and remainder provisions differ from a first-party trust. Do not assume that every third-party trust automatically preserves benefits or has the same payback treatment; the document and benefit rules matter.
Pooled trust
A pooled trust is managed by a nonprofit association, with separate accounts for individual beneficiaries and pooled investment or administration features as allowed by the trust. It may be considered in some situations involving a person’s own assets. The trust agreement, program terms, eligibility requirements, fees, and treatment of funds remaining after death should be reviewed before choosing this option.
FAMILY PLANNING GOALS
Why Families Explore This Planning
Families may ask about a special needs trust when they want to:
Plan for an inheritance, gift, settlement, or other funds intended to support a person with a disability.
Identify who will manage funds and how the trust’s terms can guide that responsibility.
Coordinate family gifts and beneficiary designations with an existing or future estate plan.
Understand how trust administration and distributions may interact with SSI, Medicaid, housing, or other programs.
Discuss a long-term support plan that reflects the person’s priorities and circumstances.
A trust is not always necessary or appropriate. The right next step depends on the person’s goals, existing resources, benefit status, family plan, and professional advice.
TRUSTS & PUBLIC BENEFITS
How Trust Distributions Can Affect Benefits
A trust may be drafted with the goal of supplementing, not replacing, other resources, but the effect of a payment depends on the benefit program and the details. Cash paid directly to a beneficiary or payments for certain goods, services, or housing costs may affect SSI or another program differently. Medicaid rules and other needs-based programs may use their own standards.
Do not rely on a general checklist to decide whether a proposed payment is permitted. Trustees should get guidance before making distributions that could affect benefits, keep records required by the trust and program rules, and consult an attorney or qualified benefits specialist when questions arise.
No website can guarantee that a trust will preserve benefits in every circumstance.
RELATED PLANNING OPTIONS
Special Needs Trusts and ABLE Accounts
An ABLE account is a separate savings option for some people with disabilities who meet current eligibility rules. It may be used on qualified disability-related expenses under its own rules. An ABLE account and a special needs trust are different tools; in some circumstances families may ask a professional whether they can work together.
Eligibility, contribution rules, qualified expenses, benefit treatment, and state tax treatment can change. Review current Oregon ABLE program information and speak with a qualified professional before making decisions.
COMMON QUESTIONS
Frequently Asked Questions
Will a special needs trust protect SSI or Medicaid eligibility?
It may be designed to address certain benefit rules, but eligibility is not guaranteed. The effect depends on trust type, terms, funding, administration, distributions, the person’s facts, and each program’s current rules. Obtain individualized advice before transferring assets or changing benefits.
What is the difference between first-party and third-party trusts?
The central distinction is who contributed the assets: first-party trusts generally hold the beneficiary’s own assets, while third-party trusts hold assets contributed by someone else. The legal requirements, administration, and what happens to remaining assets may differ substantially.
Does every first-party trust have a Medicaid payback requirement?
Federal exceptions for certain first-party trust structures include Medicaid reimbursement provisions, but requirements and how they apply depend on the trust type and circumstances. Pooled trust provisions and state rules also need review. Ask an attorney to explain the terms and any potential reimbursement before signing.
Can a parent leave an inheritance directly to a child who receives benefits?
Do not rely on a general checklist to decide whether a proposed payment is permitted. Trustees should get guidance before making distributions that could affect benefits, keep records required by the trust and program rules, and consult an attorney or qualified benefits specialist when questions arise.
Is an ABLE account the same as a special needs trust?
No. They are different planning arrangements with different eligibility, funding, administration, and use rules. A qualified professional can help determine whether one or both should be considered.
Who can serve as trustee?
The requirements and practical considerations depend on the trust. A trustee may have significant duties to manage assets, follow the document, keep records, and act for the beneficiary. Discuss trustee qualifications, independence, fees, and backup plans with an attorney.
Can the beneficiary receive money directly from the trust?
The consequences depend on the trust and benefit program. Some distributions can affect eligibility or payment amounts. A trustee should obtain case-specific guidance before making a distribution rather than relying on a generalized rule.
When should a family start planning?
Consider getting advice before an expected inheritance, settlement, or other major transfer, and whenever benefit status or family circumstances change. Timing may matter, and a professional should review the specific facts before assets are moved.
Getting Started
YOUR NEXT STEP
You don’t need to have everything figured out before we talk. Share what you want to protect, the questions you have about your planning options, or the decisions you’re trying to make. We’ll listen and help you identify a clear next step.
Estate planning education and coordination to help families protect what matters most.
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Fortis Planning, LLC provides estate planning education and coordination. We are not a law firm and do not provide legal, tax, accounting, or investment advice. Legal documents are prepared and reviewed by licensed attorneys in the applicable state. Consult qualified professionals about your individual circumstances.
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