A Special Needs Trust allows parents, or other relatives, to place money, gifts, lawsuit settlement funds, or other assets into a trust for a child or loved-one with special needs without endangering the beneficiary’s eligibility for certain government programs such as Supplemental Security Income (SSI) and Medicaid. The purposes of a Special Needs Trust are to help support a disabled person, enhance his or her quality of life, and provide his or her family with peace of mind that their loved one is well cared for.

Government programs like SSI and Medicaid are designed to provide for the most essential necessities like health, housing, food and clothing. A properly executed Special Needs Trust can provide additional funds for the person with special needs for a variety of life-enhancing expenditures. In fact, the Special Needs Trust must be designed to ‘supplement’, not replace, public benefits.

Funds from a Special Needs Trust must not be paid directly to the person with special needs. Instead, the Trust is administered by a third-party called a Trustee. The Trustee disburses the funds for permitted life-enhancing uses.

A Special Needs Trust can be used for a variety of expenditures without compromising eligibility for certain government programs, for example:

• Annual check-ups at independent medical facilities
• Special dietary needs
• Supplemental education and tutoring
• Trips or vacations
• Entertainment activities
• Out-of-pocket medical and dental expenses
• Transportation (including the purchase of a vehicle)
• Maintenance of the vehicle
• Materials for a hobby or recreation activities
• Goods and services that add pleasure and quality to life, for example computers, videos, furniture, or electronics
• Personal care attendant

Gretchen Neddenriep can help you establish a Special Needs Trust so eligibility for government benefits is preserved while at the same time providing assets that will meet the supplemental needs of the person with a disability.

Call Gretchen Neddenriep for answers to
all of your questions about Special Needs Trusts
(847) 625-7830