SNT Benefits and Responsibilities

Prepared for Demo Review

What the SNT Does

A third-party Special Needs Trust holds protected assets for the dependent household without placing direct ownership in the beneficiary's hands.

Main Benefits

• keeps protected assets outside the beneficiary's direct ownership
• supports supplemental quality-of-life spending through trustee-controlled distributions
• provides a landing place for pre-Medicaid liquidation proceeds that should not remain exposed in the grantor's name
• avoids first-party Medicaid payback rules because this is modeled as a third-party trust

Main Constraints

• direct cash distributions are generally the wrong default
• distributions must stay aligned with benefit-protection logic
• trust bookkeeping has to be precise enough to survive benefit or tax review

Trustee Responsibilities

• approve and document every distribution
• pay vendors directly where possible
• keep SNT assets separate from all personal and MAPT funds
• track housing, maintenance, and support expenses consistently
• coordinate with counsel whenever benefits or household composition change

Demo Summary

The SNT is the protected holding vehicle for the dependent household. Its value is not just asset storage; it is controlled access without collapsing benefit protection.