Supplemental Needs Trusts

A supplemental needs trust refers to trusts for persons with special needs who are also recipients of important public benefit programs, such as Medicaid and SSI, Supplemental Security Income. The primary purpose of these trusts is to make assets available for the benefit of the person with disabilities without making the assets count towards that beneficiary’s eligibility for social welfare programs such as Medicaid.

Supplemental needs trusts can be a third party supplemental needs trust. This trust is created by a third party (not by the disabled individual) and funded with assets of that third party. The third party who creates and funds the trust is usually a parent or grandparent for the benefit of a disabled child or grandchild.

The second type of supplemental needs trust is a self-funded trust, also referred to as a "self-settled" trust because it is created by the person with disabilities and funded with their own funds. With this trust, when the person dies, the trust must reimburse the state for any medical assistance paid by the state to the person with disabilities under the Medicaid program.

Need help navigating special needs planning for your loved one? Contact our special needs planning attorneys  - we're here to help! 

Related Information:

What is the Difference Between a Special Needs Trust and a Supplemental Needs Trust?
What is a Third Party Special Needs Trust?
SSI For Children With Disabilities
4 Key Differences Between ABLE Accounts and SNTs