Supplemental and Special Needs Trusts
Often clients come to us facing the anxiety of providing for a disabled family member who is on public benefits. These clients want to care for their family member, but know that assets the disabled family member receives may disqualify them from their benefits.
Without getting overly technical, Supplemental Needs Trusts are trusts created by a person, using their assets, to benefit a disabled person while insuring that the disabled person will not be disqualified from receiving public benefits. For example, a parent could create a Supplemental Needs Trust in their will to receive their disabled child’s inheritance to give the child a better standard of care in the care facility they are in, all the while keeping the child eligible for the public benefits they receive. Similarly, a Special Needs Trust is set up with the same goal in mind, but uses the disabled person’s own assets (for example from a personal injury settlement) to fund the trust.
Supplemental and Special Needs Trusts can do many things, however, perhaps the best thing they can do is provide peace of mind.