Why is it important to have a supplemental needs trust in place for a disabled person?
It helps protect any inheritance or gifts you would like to leave that disabled person while still allowing them to remain eligible for their government benefits.
It is essential to have a Supplemental Needs Trust (SNT) in place for a disabled person -blind, deaf, dumb, etc. – with the purpose of making life better for them.
It helps protect any inheritance or gifts that you may like to leave to that disabled person while still allowing them to remain eligible for their government benefits.
Not just anybody with a disability needs an SNT, however. Generally, an SNT is done for a person receiving, or likely to receive means-tested public benefits. Medicaid and Supplementary Needs Trust are examples of means-tested federal benefits.
An SNT can help a person with a disability by allowing such a person to receive distributions from the trust without the trust being counted as a resource. The person maintains his eligibility for public benefits while also getting his quality of life enhanced.
However, there are certain limitations. The trustee can spend on “Special Needs” but not “Support.” There are certain things Trust money cannot pay for, such as mortgage, electricity bill, or property taxes.