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A supplemental needs trust is a type of trust that is set up to help take care of someone with special needs. It is also known as a special needs trust. This trust is designed to provide financial support for the person with special needs without affecting their eligibility for government benefits. The trust can be used to pay for things like medical expenses, education, and other needs that are not covered by government benefits.
A supplemental needs trust is a type of trust that is created to provide financial support for individuals with disabilities or special needs. The trust is designed to supplement any government benefits the individual may be receiving, such as Medicaid or Social Security, without jeopardizing their eligibility for those benefits.
For example, if a person with a disability receives Medicaid benefits, they may not be able to have more than a certain amount of assets in their name. By creating a supplemental needs trust, any additional funds can be placed in the trust and used to pay for expenses that are not covered by Medicaid, such as transportation, education, or entertainment.
Another example is if a parent wants to leave an inheritance to their child with special needs. Instead of leaving the inheritance directly to the child, which could affect their eligibility for government benefits, the parent can create a supplemental needs trust and name the child as the beneficiary.
These examples illustrate how a supplemental needs trust can provide financial support for individuals with disabilities or special needs without jeopardizing their eligibility for government benefits.
Supplemental Jurisdiction | Supplemental Nutrition Assistance Program (SNAP)