What is a supplemental needs trust?

A supplemental needs trust (sometimes referred to as a "special needs trust") is a type of trust designed to supplement the care of a person with a disability who is receiving government benefits, such as Supplemental Security Income or Medicaid. This type of trust allows the disabled person to still receive government benefits while preserving their assets. The trust is created by a family member or other interested party such as a friend or guardian. These individuals are usually referred to as a “grantor” and are responsible for setting up trust terms and choosing a trust administrator. The trust is established with money from the grantor and is managed by the trust administrator. The trust is used to purchase items or services that are intended to supplement the care and quality of life for the disabled person. These services or items may include things like food, housing, transportation, education, therapy, and other items or services not provided by governmental benefits. The trust is designed to help the disabled person maintain a certain level of independence and quality of life, while still taking advantage of government benefits. The trust must be established in accordance with state and federal laws in order for the disabled person to still be eligible for government benefits.

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What is a supplemental needs trust?

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