What is a Supplemental Needs Trust?

Americans are living longer than they did in years past, including those with disabilities. Planning by parents can make all the difference in the life of a child with a disability, as well as that of their siblings who may be left with the responsibility for caretaking, on top of their own careers and caring for their own families.

Supplemental Needs Trusts

Special needs trusts (also known as "supplemental needs trusts") are an important component of planning for a child with a disability, even though the child may be an adult by the time the trust is created or funded.

These trusts allow a beneficiary with a disability to receive inheritances, gifts, lawsuit settlements, or other funds and yet not lose their eligibility for certain government programs, such as Medicaid and Supplemental Security Income (SSI). The trusts are drafted so that the funds will not be considered to belong to the beneficiary in determining their eligibility for public benefits.

What a Special Needs Trust Can Pay For

Special needs trusts are designed not to provide basic support, but instead to pay for comforts and luxuries that could not be paid for by public assistance funds. These trusts typically pay for things like education, recreation, counseling, and medical attention beyond the simple necessities of life. 

Three Types of Special Needs Trusts

There are three main types of special needs trusts: the first-party trust, the third-party trust, and the pooled trust. All three name the person with special needs as the beneficiary, but they differ in several significant ways, and each type of trust can be useful in its own way.

Elder Law of Omaha provides free 30 minute consultation to provide options for people in planning for their potential long-term care needs. If you, a loved one, or a client need help figuring out the available options, please call us today at 402-614-6400 to schedule your consultation or visit our website at www.ElderLawOmaha.com