Supplemental Or Special Needs Trusts
Posted on Wed, Dec 02, 2009
I have been seeing a lot of questions on blogs recently about what a special-needs or supplemental-needs trust is.
If your child (or other beneficiary) were to become legally disabled and started getting government payments before he got his inheritance, all government payments stop until all of the inheritance is used up for his care.
Our estate plan corrects this problem by inserting a SUPPLEMENTAL-NEEDS TRUST for your disabled beneficiary into your trust. This type of trust allows him to continue getting government benefits. His inheritance money then can be used by the successor trustee to pay for things that the government won't provide such as clothing, a car, etc. This means that your legacy is being used to improve your beneficiary's life and not just delaying government benefits.