A Special Needs Trust (also known as a Medicaid Pay-Back Trust or Third-Party Supplemental Needs Trust) helps families support a loved one with a disability without jeopardizing access to important needs-based programs such as Supplemental Security Income (SSI) or Medicaid. At Riseling & Rhodes, P.C., we help clients throughout Oklahoma create carefully structured trusts that protect assets, enhance quality of life, and provide long-term peace of mind.
Special Needs Trusts
Providing Long-Term Financial Support While Preserving Essential Benefits
Why Special Needs Trusts Matter
Families often come to us because they want to help a loved one with a disability without unintentionally disrupting the public benefits that provide medical coverage, income assistance, and long-term support. A properly drafted Special Needs Trust allows you to supplement – not replace – these benefits while protecting your loved one’s financial stability.
With an SNT in place, your family member may receive support throughout life, even when parents or caregivers are no longer able to help directly.
What Is a Special Needs Trust?
A Special Needs Trust (SNT) is a legal arrangement that holds and manages assets for the benefit of a person with a qualifying disability. Because the trust, not the individual, owns the assets, eligibility for SSI, Medicaid, and related programs is preserved.
Funds in an SNT may be used for supplemental needs that improve quality of life, including:
Education, training, and therapies
Transportation or travel
Assistive technology and medical equipment
Personal care services
Recreation, hobbies, and community programs
Furniture, appliances, and adaptive home items
It is important to note that the funds from the SNT cannot be used for “basic support” such as food or housing, as it would disqualify the beneficiary from receiving government assistance. Additionally, the trustee of the SNT should not make direct cash payments or equivalents (like gift cards) to the beneficiary.
Instead, the funds must be used for “special needs,” which could include things like education, transportation, technology/electronics, medical expenses, legal/admin and other related expenses.
When structured properly, an SNT can provide meaningful support while maintaining essential benefits.
Instead, the funds must be used for “special needs,” which could include things like education, transportation, technology/electronics, medical expenses, legal/admin and other related expenses.
When structured properly, an SNT can provide meaningful support while maintaining essential benefits.
Benefits of Creating a Special Needs Trust
Families choose SNTs because they offer lasting protection and stability:
Preserves eligibility for needs-based programs
Safeguards inheritances and financial gifts
Provides lifelong supplemental support
Ensures assets are used responsibly under trustee oversight
Allows planning for the future without risking benefit disruption
A Special Needs Trust helps ensure your loved one remains cared for long after you are no longer able to provide support personally.
How We Help You Establish a Special Needs Trust
We guide families through the available trust structures and help determine which option best fits their needs:
1.
Medicaid Payback Trust
Also known as a first-party special needs trust. This type of trust is funded with the beneficiary’s own assets (e.g., assets inherited directly by the beneficiary, settlement, or savings). Must be created before age 65 and includes a Medicaid payback provision.
2.
Special Needs Trust
Also known as a third-party supplemental needs trust. This trust is funded by parents, grandparents, or a loved one’s assets. May be created during life or through an estate plan. There is no age limit. No Medicaid reimbursement requirement.
Key Services Included in Special Needs Trust Planning
When you work with our firm, you can expect:
CUSTOM DRAFTINGOF MEDICAID PAYBACK TRUST OR SPECIAL NEEDS TRUST
GUIDANCE ON TRUSTEE SELECTION AND RESPONSIBILITIES
COORDINATION WITH YOUR REVOCABLE TRUST OR WILL
REVIEW OF BENEFICIARY DESIGNATIONS
SUPPORT FOR TRUSTEES REGARDING REPORTING, DISTRIBUTIONS, AND COMPLIANCE
INTEGRATION WITH BROADER ESTATE PLANNING AND GUADIANSHIP DOCUMENTS
We help ensure the trust is structured correctly, funded properly, and maintained with clarity.
How a Special Needs Trust Fits Into a Complete Estate Plan
An SNT works best when it is coordinated with the rest of your planning documents. We commonly connect the trust with:
Your will or revocable trust — to ensure inheritances flow to the SNT
Your advanced directive — for healthcare guidance
A letter of intent outlining preferences, routines, and personal history
When to Create or Update a Special Needs Trust
Consider creating or reviewing an SNT when:
You are updating your estate plan
A child or adult family member becomes eligible for benefits
There are changes in caregivers or family circumstances
You expect to leave significant assets for long-term support
Planning early helps ensure stability and continuity of care to an individual with a disability
Who Benefits From a Special Needs Trust
SNTs are especially valuable for:
Parents or grandparents with a loved one who has a disability
Families wanting to protect SSI or Medicaid eligibility
Individuals with disability benefits receiving personal injury settlements
Special needs adults whose own assets could jeopardize benefits
Caregivers wanting long-term oversight and structure
Why Choose Riseling & Rhodes, P.C.
At Riseling & Rhodes, our attorneys don’t just practice special needs planning—they live it. Having a close family member with special needs gives our team firsthand insight into the emotional, financial, and long-term challenges families face. This personal connection shapes every recommendation we make. Additionally, families across Oklahoma trust our firm because we offer:
Experienced attorneys with deep understanding of SNT requirements
Calm, clear guidance for families navigating complex rules
Boutique-level attention tailored to each family’s needs
Documents drafted to federal and state standards
Long-term support for trustees and caregivers
We take pride in helping clients ensure their trust works exactly as intended.
Frequently Asked Questions About Special Needs Trusts
Protect Your Loved One’s Future
Our personal experience reinforces how critical it is to protect government benefits while still enhancing a loved one’s quality of life. We carefully design trusts that balance legal compliance with practical, real-world needs—today and decades into the future. We are here to help you build a plan that supports your loved one today—and for life.