A supplemental needs trust, also known as a special needs trust, is a legal arrangement that allows you to provide financial support for a loved one who is physically or mentally disabled without affecting their eligibility for government benefits.
This type of trust is becoming increasingly popular as more people become aware of the benefits it can provide. In this blog post, we will discuss what a supplemental needs trust is and how it can help you provide for your loved one's future.
Supplemental Needs Trust
A supplemental needs trust is created to protect a beneficiary's access to essential government benefits while still providing them with additional financial support. This type of trust allows you to put aside money and other assets that can be used to supplement the beneficiary’s government benefits by paying for certain expenses, such as medical bills or living expenses.
The primary benefit of a supplemental needs trust is that it does not affect a person’s eligibility for Social Security Income (SSI) or Medicaid benefits. Additionally, any funds remaining in the trust after the beneficiary passes away can be used to reimburse the state for money spent on care.
A supplemental needs trust should be established by an experienced financial professional who specializes in this type of arrangement. An expert will be able to ensure the trust is properly set up and meets all legal requirements.
A financial professional can also help you choose investments for the trust. A supplemental needs trust can be an effective way of planning for your loved one’s future, so it is important to take the time to make sure it is done correctly.
We Can Help with Your Trust
The bottom line is that a supplemental needs trust can provide essential support for a disabled individual while ensuring that they still have access to government benefits. If you are considering setting up such a trust, it is important to consult with an experienced financial professional who understands this type of law and can help you create a plan that meets your specific needs.
Call Legacy Enhancement Trust today at (888) 988-5503 or fill out the online contact form to learn how we may assist you!