It is the type of Trust that a parent, grandparent, guardian/conservator, or court establishes for an individual who is under 65 years of age, so that he/she can transfer his/her assets and not be disqualified from government benefits like Supplemental Security Income, ("SSI"), and Medicaid. They were brought about by the Federal Omnibus Budget Reconciliation Act of 1993.

There are Pooled SNTs, 'PSNT', and individual SNTs. Trust documents vary for Pooled and Individual Trusts. In a PSNT, the beneficiary joins an existing master trust with a document referred to as a "joinder agreement". An individual account is held for each beneficiary, but, for the purposes of investment and management of accounts, the trust pools accounts together under one master trust; thus, a "Pooled" trust.

In an individual SNT, an attorney draws a trust tailored to that particular case. The individual SNT can only be established by a parent, grandparent, guardian or the court; whereas a PSNT can be established by the individual themselves.

So, it's time to get familiar with these trusts, and know when it might be an option for you, a family member, friend or neighbor. With a better understanding of these trusts, you may see that it is information you should share with someone you care about.

The beneficiary in an SNT is an individual who is, or may be, eligible for SSI or Medicaid. The assets that fund the trust may have been acquired before the disability occurred. A trust account can be funded with a lump sum, or through installments. It may be funded with either cash assets, or items easily convertible to cash, such as securities. The account may be established for future funding, which is especially important for parents who plan to leave assets to the trust as part of an estate settlement.

The beneficiary must be disabled according to Social Security Administration, "SSA", criteria. The accounts are solely for the benefit of the disabled individual, (the beneficiary). In other words, funds from the account are to be made available only for purchases of goods or services that are utilized only by the beneficiary.

Upon the death of the beneficiary, the State Medicaid agency is reimbursed the cost of medical services it has provided the beneficiary during his/her lifetime. Any remaining balance is then distributed as designated by the beneficiary in their trust document. In some states, PSNTs allow for the Charity to retain 100% of the remainder of the trust. In such cases, Medicaid is not reimbursed for its costs of medical services.

How can we, at Knights Administration, help you, or someone you care about, meet financial needs through an SNT?

Knights coordinates services, allowing beneficiaries to receive the utmost advantages available in an SNT.

SNTs are designed to supplement, not replace, the basic support that SSI and Medicaid provide. This means that funds from the trust can be utilized to pay for comforts that otherwise could not be paid for by public assistance programs.

General items that may be requested from the trust include: transportation costs, medication and/or other medical needs not covered by insurance or Medicaid, clothing, personal care items, recreational activities and socialization programs, including training in vocational and independent living skills and assistance.

These are all needs that we take for granted in our daily lives. For those of us who find ourselves needing public assistance, a PSNT and/or SNT can make an immeasurable difference in our quality of life. Knights Administration helps protect the eligibility requirements needed for public assistance programs while you access funds from your trust.

We at Knights are here to assist with the daily management of accessing and monitoring the use of your SNT funds. Through a streamlined systems interface and call center, our staff works closely with the beneficiary/advocate by building and maintaining a comfortable working relationship. Knights' staff processes and reviews all requests for payment, and acts as liaison between beneficiaries, advocates, counsel and trustees as you utilize your trust. We understand that there are deadlines and due dates. We will work with you diligently to assist you with your needs.

Knights Administration brings peace of mind to beneficiaries and their families through protection against financial abuse and mistreatment. We'd like to be here for you through your life's challenges.