Special Needs Trusts and SNAP

Food assistance programs like the Supplemental Nutrition Assistance Program (SNAP) provide essential support to individuals with disabilities who may struggle to meet their nutritional needs. However, when a person with special needs receives government benefits, careful financial planning is required to ensure continued eligibility. One important tool in this process is a Special Needs Trust (SNT).

A Special Needs Trust is a legal arrangement that allows a person with a disability to receive financial support without jeopardizing their eligibility for needs-based public benefits like SNAP, Medicaid, and Supplemental Security Income (SSI). Assets placed in an SNT are not counted against income or resource limits set by these programs, as long as the funds are used for approved supplemental expenses that enhance quality of life.

When it comes to food assistance, it’s important to understand that SNTs cannot directly pay for food or shelter without potentially reducing SSI benefits. This rule helps maintain the recipient’s primary reliance on government aid for basic needs while allowing the trust to fund other expenses such as transportation, education, therapy, or personal care items. Trustees must be cautious in how trust funds are used to avoid triggering penalties or benefit reductions.

Properly managed, an SNT can complement food assistance programs by covering other living costs, thereby improving the overall well-being of the beneficiary. It ensures that individuals with disabilities maintain access to vital government support while also enjoying a better quality of life through supplemental resources.

Consulting with an attorney who specializes in disability planning is essential to ensure the trust is correctly set up and administered. When used alongside food assistance programs, Special Needs Trusts offer a balanced approach to financial support that respects both legal guidelines and the individual’s dignity and independence.