Description

Bulk Discount Rates
10 – 27 copies = 10%
28 copies (1 case) = 25%

 

ISBN 978-0-9988142-5-4
Published 2026
Paperback
188 pages

MANAGING A SPECIAL NEEDS TRUST: A GUIDE FOR TRUSTEES

This CURRENT edition includes updates on:

• The SSI program no longer considers the cost of food to be “in-kind income” that will reduce a recipient’s monthly benefit. Thus, you can pay for your beneficiary’s food expenses without affecting their stipend.
• The SSI program has eliminated the automatic 1/3 reduction in benefits for certain recipients who get help with their housing expenses. No reduction will be made if the recipient is paying rent at a “market rate.” In 2024, the market rate is $334 per month, and in 2025 it will be $343 per month. This is 1/3 of the maximum federal benefit ($943 in 2024, and $967 in 2025) plus $20.
• The Section 8 housing program and other federal housing subsidy programs will impose a $100,000 asset limit. The new rules were slated to take effect on January 1, 2025, but have been postponed to July 1, 2025. An irrevocable special needs trust to which the tenant does NOT have access will NOT be counted as part of the $100,000 limit. However, income that is earned by the trust (interest and dividends) and is withdrawn to pay expenses will be counted as part of the tenant’s income, which could affect their monthly rent and potentially their eligibility for the program. Fortunately, withdrawals of trust principal will not be counted as “income.”

As well as all the details you’ve come to expect in this comprehensive guide.

The MANAGING A SPECIAL NEEDS TRUST: A GUIDE FOR TRUSTEES 2026 edition covers many topics you need to know, including:

• What trustees need to know about public benefit programs such as SSI, SSDI, Medicare, and Medicaid;
• Taxes and special needs trusts;
• Payment of recreation, transportation, and medical costs;
• Housing subsidies; and
• Trustee duties.

The authors, who are all attorneys, bring many years experience in guiding trustees through the complicated rules of public benefits and special needs trusts. In clear, easy to understand language, the authors provide practical strategies trustees can use.

By reading MANAGING A SPECIAL NEEDS TRUST, you will learn how a trustee can use trust funds to meet the financial needs of a person with disabilities and still comply with the complex rules of government benefit programs.

THIS NEW BOOK IS RELEVANT TO ALL 50 STATES. While earlier editions were focused on Massachusetts’ laws and procedures, this book applies to all states–the book covers uniform statues that have been adopted in most states. It also provides information on the rules of most major federal benefit programs that provide cash, medical benefits and housing subsidies to people with disabilities.

MANAGING A SPECIAL NEEDS TRUST: A GUIDE FOR TRUSTEES 2026 is an invaluable resource for anyone who is managing a special needs trust for a person with a disability.

 

TABLE OF CONTENTS

About the Authors
Legal References
Introduction

 

CHAPTER 1      The Special Needs Trust
What Is a Special Needs Trust?
The Trustee’s Role: The Beneficiary Comes First
Deciding Which Bills to Pay
Paying Bills Without Reducing Public Benefits
Do You Want the Job?

 

CHAPTER 2      Getting Started
Read the Trust
Get Instructions from the Grantor
Meet the Beneficiary
Get Help with Public Benefits
Choose a Qualified Attorney
Find Out If the Trustee Needs an Employee Identification Number
Review a Schedule of the Trust Assets
Transfer the Assets to the Trust
Accept the Trusteeship
Plan Your “Exit” Strategy
Make Sure the Trust Property Is Insured
Obtain Professional Help with Investments

 

CHAPTER 3      The Supplemental Security Income (SSI) Program
SSI Basics
Benefit Amounts
How to Qualify for SSI
Resource Limits
Income Limits
Assisting a Trust Beneficiary Who Lives with Their Parent or Other Family Member
Assisting a Trust Beneficiary Who Rents an Apartment
Assisting a Trust Beneficiary Who Owns a Home
Assisting a Trust Beneficiary who Lives in a Home Owned by Their Trust
Co-ownership by a Family Member and the Special Needs Trust
SSI and Work
Children’s SSI Benefits

 

CHAPTER 4      The Social Security Disability Insurance
(SSDI) Program
SSDI Basics
Who Can Receive Benefits
Benefit Amounts
Recipients of SSI and SSDI (“Dual Recipients”)
SSDI and Work
Keeping Track of Recipients’ Finances

 

CHAPTER 5      Medicaid, Medicare, the Affordable Care Act, and Private Health Insurance
Medicaid
Basic Medical Services
Qualifying for Basic Medical Services
Disability-related Service
The Affordable Care Act
Medicare
Medicare Part A
Medicare Part B
Medicare Part C
Medicare Part D
Getting Help with Medicare Premiums and Costs
Qualified Medicare Beneficiary (QMB)
Private Health Insurance

 

CHAPTER 6      Paying for Recreation, Transportation, Medical Expenses, and More
Useful Strategies for Paying Bills
Paying for Recreation Expenses
Transportation
Medical Expenses
When Not to Pay for Medical or Transportation Costs

 

CHAPTER 7      Housing Subsidies: The Section 8 Program
Qualifying for Section 8: Meeting the Income and Asset Requirements
The “Low Income” Requirement
The New Rule for Special Needs Trusts: Income that is Distributed—But Not Principal—is Counted
The Restriction on Ownership of Property Suitable for Occupancy
How the Section 8 Contract Works
Requesting an Accommodation So the Tenant’s Family Can Be Their Landlord
A New Trend in Housing

CHAPTER 8      The Trustee
Accepting the Trusteeship
Resigning from the Trust
Appointing Your Successor
Removing the Trustee
Who Should Be the Trustee?
Co-Trustees
Surety Bonds
Trustee Fees
Pay Yourself Regularly and Avoid Problems When the Trust Ends

 

CHAPTER 9      Trustee Responsibilities
The Fiduciary Duty
Follow the Terms of the Trust
Do Not Have Any Personal Financial Dealings with the Trust
Keep the Beneficiary Informed About How You Are Managing the Trust
Protect the Trust Property
Keep the Trust Property Separate from Other Property
Make the Trust Property Productive
Enforce Claims and Defend the Trust
Use Any Special Skills You Have to Benefit the Trust
Pay Income Taxes When They Are Due
Keep the Beneficiary’s Information Private
Trustee Liability
Protecting Yourself

 

CHAPTER 10    Everyday Management
The Budget
Opening the Initial Bank Account and Putting Money into the Trust
Signing Your Name
Record Keeping
Financial Records
Collecting Personal Information About the Beneficiaries
Where to Keep the Trust Documents
Making a Loan to the Beneficiary
Providing Financial Reports to the Beneficiaries

 

CHAPTER 11    Hiring Caregivers
Are You Authorized to Hire Someone? Read the Trust
Before You Hire, Explore Public Benefit Programs That Pay Caregivers
Hiring the Beneficiary’s Parents and Other Family Members to Act as Caregivers
The Hiring Process
Basic Requirements for Employers
Protect the Trust by Having Adequate Insurance
Protect Yourself

 

CHAPTER 12    Taxes
Getting an Employer Identification Number
File Form 56
Find Out If Any Taxes Are Due When You Open the Trust
Find Out If the Trust or the Beneficiary Will Pay the Tax
Strategies to Reduce Income Taxes
Income Taxes and the SSI Program: Dealing with “Phantom” Income
Dealing with Retirement Accounts
Avoid Personal Liability for Income Taxes
Find Out If the Trust Will Owe Estate Taxes

 

CHAPTER 13    Investments
Making the Trust Productive
Limits on Investments You Can Make
Developing an Investment Policy
Getting Professional Help with Investments
Working with an Account Manager
Investing on Your Own
Educating Yourself
Limiting Your Liability
Investment Basics
Investing in Difficult Economic Times
Stocks
Bonds
Cash
Mutual Funds
Diversification

 

CHAPTER 14    Closing the Trust
The Big Picture
Reimburse the State Medicaid Agency, if Required
Find Out How Much is Owed to the State
Dealing with a Deficit
Obtain a Written Release
Pay the Trust’s Final Expenses
File the Final Income Tax Returns
Provide a Final Report to the Beneficiaries
Transfer the Trust Assets to the Beneficiaries
Select the Method of Transfer

 

CHAPTER 15    Getting Help
Attorneys
Financial Advisers
Tax Advisers
Legal Aid and Advocacy Organizations
Social Workers and Case Managers

 

CHAPTER 16    Glossary of Terms

 

CHAPTER 17 Resources
Government Websites
Publications
Organizations

 

APPENDIX 1    Sample Accounts and Assent Form
Example of a Trustee’s Annual Account
Example of a Final Account with a Reserve Fund
Example of a Beneficiary’s Assent to the Trustee’s Account

 

APPENDIX 2    Sample Trustee Forms
Example of a Trustee’s Acceptance
Example of a Trustee’s Resignation
Example of a Trustee’s Declination

 

APPENDIX 3    Rental/Lodger Agreement

 

Index