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Special Needs Trust: Also known as a Spendthrift, Luxury, Discretionary or Supplemental Trust. It may be created as a Living Trust during the life of the person (grantor) or as a Testamentary Trust after the death of a person (grantor). It is designed to provide for the supplemental needs of a disabled person over and above that being given by the government. The trust funds are not to supplant or replace government program benefits. Once the basics of food, shelter, medical care, education, etc. are met by the government, the trust can provide additional funds to enhance the quality of life. The trustees should never give more funds causing a loss or reduction of government benefits unless there is an emergency. The trust is not in the name of the disabled person. This type of trust is not considered an asset in determining eligibility for government benefits. Only those funds actually disbursed directly to the client will count as earned or unearned income. |