If a client has a disabled or retarded child it is very important to ascertain whether that child is receiving money from any government program such as Medicaid or the Supplemental Security Income Program (SSI). If a person's child is receiving Medicaid or SSI a bequest in a Last Will and Testament to that child may eliminate the Medicaid or SSI benefits for that child.
However, if the parent of that disabled or retarded child creates a Supplemental Needs Trust then the child will still be able to receive Medicaid or SSI or other government means tested benefit and still retain the benefit of the Supplemental Needs Trust. Federal legislation passed in 1993 and various implementing state statutes established for the first time the ability for a parent to create a Supplemental Needs Trust for their child who has a disability.
These Supplemental Needs Trusts can provide benefits without affecting eligibility for government benefits such as Medicaid or SSI or other governmental benefit program. In essence these Supplemental Needs Trusts provide for the provision of funds to the disabled or retarded child that will supplement but do not replace any government benefits.
Supplemental Needs Trusts
This article was edited and reviewed by FindLaw Attorney Writers | Last reviewed March 26, 2008
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