About Supplemental Needs Trusts

Supplemental Needs Trusts for the Disabled

Disabled persons sometime face a dilemma, especially when they are eligible to receive some form of public assistance, such as Supplemental Social Security Income (SSI) or Medicaid. Direct distribution of the assets is not advisable since the disabled person will lose the SSI or Medicaid benefits.

The Supplemental Needs Trust is unlike other commonly used trusts. Most people believe a trust’s main use is to help the beneficiary maintain a standard of living. The normal standard for this type of trust is to provide for the general welfare of the trust beneficiary. A Supplemental Needs Trust, however, is established to provide a secondary source of funds to pay for "extras" and should not be used to provide for the health and maintenance of the individual, something not normally associated with a traditional trust.

A Supplemental Needs Trust clearly states that the trust’s assets must never be directly accessible by the disabled person—the trustee alone should have exclusive management over the income and principal of the trust. Only the trustee is permitted to make distributions on behalf of the disabled person and those payments should be made directly to the provider of the services.

It is important to retain the services of a knowledgeable estate planning advisor, who knows the intricacies of disability law. The lawyers at Hunziker, Jones & Sweeney have the skills and experience to help you in these matters and welcome your inquiries.

For more information, contact us at info@hjslawoffice.com