What is a Supplemental Needs Trust?

Here is our updated post explaining special needs trusts.

A Supplemental Needs Trust (SNT) is a discretionary trust which is established for a disabled individual while they are on a governmental disability program. Ordinarily governmental programs consider a person’s income and resources to determine whether they will be eligible for assistance; however a SNT will not be treated as an available resource for eligibility purposes so long as the statutory requirements are satisfied. The SNT can be used to pay for expenses that Medicaid does not cover, such as certain home care services, travel, entertainment, automobiles, a house, technology, furnishings, and other luxury items.

A SNT may be established by a parent, grandparent, guardian or the Court for a disabled person under age 65. When assets and income of the incapacitated person are transferred into the SNT, there will not be an ineligibility period for Medicaid and Medicaid will not be able to consider the SNT when determining eligibility.

One thing to keep in mind however is that after the incapacitated person dies, depending on the type of trust and how it was funded, the State might require it be paid back for the Medicaid benefits spent on the incapacitated person, provided such amount remains in the trust.

To discuss whether you should set up a Supplemental Needs Trust for your loved one, call the Law Offices of Albert Goodwin at (212) 233-1233.