Special Needs Trusts, sometimes known as Supplemental Needs Trusts, are an important planning tool for families with disabled persons who receive or are eligible to receive government benefits such as SSI (Supplemental Security Income) from the Social Security Administration or Medicaid. These benefits are asset and income based. This means that eligibility is lost in the event someone receiving these benefits receives a fund of money or an increase in income. When properly drafted, these Trusts are able to provide for many needs of the beneficiary without the loss of the government benefits.
It is important to seek experienced legal counsel to determine whether your family might benefit from Special Needs Trust planning.