First-Party Special Needs Trusts in Louisville, KY

Use Personal Funds Without Losing Benefits

How a first-party SNT works in Kentucky

First-party Special Needs Trusts in Louisville, KY hold the beneficiary's own assets-injury settlements, back pay, or inheritances-while preserving eligibility for SSI and Kentucky Medicaid. Cochran Gersh Law Office designs trusts that pay for supplemental needs across St. Matthews, the Highlands, Middletown, Prospect, and Jeffersontown, so quality-of-life expenses can be covered without jeopardizing benefits.

When a First-Party SNT Makes Sense

Common situations we see in Louisville

Lump-sum injury settlements, retroactive disability benefits, or an account unexpectedly titled to the beneficiary can put SSI or Medicaid at risk. A properly drafted first-party SNT moves those assets into a trustee's hands, allowing purchases for therapies, transportation, education, and technology while benefits continue.

Review Eligibility

Medicaid Payback And Why It Matters

Understanding the payback requirement

First-party SNTs typically require Medicaid payback at the beneficiary's death for benefits provided during life. We explain how claims are calculated, how remainder beneficiaries are treated after payback, and when alternatives like pooled trusts or ABLE accounts might be a better fit based on amounts and timing.

Compare Options

Spending Rules And Reporting

What the trust can pay for-and how to document it

Trustees must avoid direct cash gifts and understand when food or shelter payments may reduce SSI. We set up practical guidelines, receipt tracking, and a reporting rhythm so payments to providers-Norton facilities, UofL Health, therapy centers-are clean and compliant.

Set Up Reports

ABLE Accounts With a First-Party SNT

Small purchases made easier

An ABLE account can complement the trust for day-to-day needs, with the SNT holding larger sums and the ABLE handling frequent, qualified disability expenses. We'll coordinate transfers and confirm how ABLE balances affect benefits.

Discuss ABLE + SNT

Our Process For First-Party SNTs

From design to funded trust

Benefits and asset review.
Draft the first-party SNT tailored to SSI and Medicaid rules.
Court approvals if needed.
Funding, trustee training, and a spending plan.

Cochran Gersh Law Office stays available for adjustments as life changes.

Answers To First-Party SNT Questions

Five answers owners want before they sell

  • Who can create a first-party SNT?

    Depending on circumstances, the beneficiary, a parent, grandparent, legal guardian, or the court may establish it. We'll confirm the cleanest route for your case.

  • What happens to existing accounts and real estate?

    We retitle assets, coordinate beneficiary forms, and set up a trust account. Real estate near Hurstbourne Parkway can be held or sold with proceeds directed to the trust.

  • Can the beneficiary have a debit card?

    Typically no direct cash access; purchases should flow through the trustee or a prepaid mechanism approved in the spending plan. We'll outline workable options.

  • How do we handle reimbursements?

    Keep receipts, request reimbursements promptly, and document who received what and why. Good records protect benefits and reduce questions.

  • What changes when the beneficiary moves?

    Rules vary by program and state. We prepare a portability checklist and coordinate with new providers so benefits continue smoothly.

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