Supplemental Needs Trusts - Special Needs Trusts 

 

Supplemental Needs Trusts, also known as Special Needs Trusts or "SNTs", can be used to enhance the quality of life for persons with disabilities. Supplemental Needs Trusts may be established by trust beneficiaries or others. SNTs typically serve as a source of maintenance or support to the extent that publicly funded benefits and programs are not available to pay for personal items and programs. The income generated by a Supplemental Needs Trust, and even the trust’s principal or “corpus”, can be used to supplement governmental benefit programs.

 

Governmental agencies can not compel the expenditure of the assets that have been properly transferred to a Supplemental Needs Trust in order to replace or diminish benefits or assistance of any federal, state, county, city, or other governmental entity, including but not limited to mental health, rehabilitation, income maintenance, residential and medical assistance programs.

 

Upon the death of the SNT beneficiary, who was also the grantor of the trust assets, any remainder of the trust property must first be used to reimburse the costs of Medical Assistance benefits paid on behalf of the beneficiary. Then any remaining trust assets may be distributed to other "remainderman" beneficiaries. However, when the Supplemental Needs Trust grantor is not the beneficiary of the SNT, the assets remaining in the Trust, upon the beneficiary's death, will be distributed in accordance with the grantor's wishes.