A Special Needs Trust, also called a Supplemental Needs Trust, is designed to provide financial support for a person with a disability without affecting their eligibility for government benefits like Medicaid or Supplemental Security Income (SSI).
NetLaw offers a Third-Party Supplemental Needs Trust, which is one of the most commonly used types in family estate planning.
What Is a Third-Party Supplemental Needs Trust?
This type of trust is created by someone other than the beneficiary, such as a parent, grandparent, or other relative, to provide for a loved one with special needs. It can be funded with gifts during the grantor’s lifetime or with assets passed through an estate.
Key benefits:
Preserves eligibility for means-tested government benefits
Can be used to pay for extra support like education, therapies, transportation, and more
Funds are not subject to Medicaid payback (unlike a first-party trust)
What Can the Trust Be Used For?
While government programs cover basic living needs, a Special Needs Trust can supplement quality of life by paying for:
Personal care attendants
Medical and dental costs not covered by insurance
Recreation and hobbies
Travel or educational services
The trust is managed by a Trustee, who uses the funds according to the rules outlined in the trust document and based on the beneficiary’s needs.
How Do I Create One in NetLaw?
To start a Third-Party Supplemental Needs Trust:
Click SmartGuide Interviews from the left-side menu
Select Special Needs Trust
Follow the guided questions to set up the trust
You can create this document on its own or as part of a larger estate planning package.