What Is A Special Needs Trust And Who Needs One?

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So, a special needs trust or also known as a supplemental needs trust. You’ve probably seen these referred to as S&Ts. They are legal arrangements that allow a person with disabilities to receive income or assets without losing their eligibility for government benefits. A supplemental needs trust or an S&T holds funds managed by a trustee for the benefit of a disabled beneficiary. The intent behind creating an S&T is to improve a disabled beneficiary’s quality of life by covering expenses that are

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not already paid or covered by government benefits. There are a few types of S&Ts. So there’s a firstparty S&T that is established by the beneficiary and is funded with the disabled beneficiary’s own assets. A drawback to this type of S&T is that those assets that are owned by that first party S&T are subject to recovery upon a beneficiary’s death by state recovery. Now, a third-party S&T is an is a trust that’s established by a third party such as a family member for the

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benefit of a disabled beneficiary. And that type of S&T is funded with third-party assets. those third party’s assets, the assets that are owned by that third party S&T are not subject to state recovery upon the beneficiary’s.

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