The Social Security Administration (SSA) has created great uncertainty for attorneys who only draft supplemental needs trusts (SNTs), but do not represent clients before the agency. A new transmittal could be interpreted to mean that such attorneys must have their fees approved in advance or be subject to criminal penalties. The memorandum has been withdrawn but the agency is still considering the issue.

What Is a SNT?

A supplemental needs trust is a discretionary trust established for the benefit of persons with severe and chronic or persistent disability. The creator’s intent is to supplement and not supplant government benefits. The trustee is prohibited from using trust assets for items that would otherwise be covered under government entitlements. Some of these trusts are established by the disabled person and some are established by third parties for the benefit of a disabled person.