Supplemental Needs Trust

Posted on November 18, 2010


A Supplemental Needs Trust is irrevocable and is used to assist a disabled person by adding to government monies such as Social Security, Medicaid, or disability checks. Monies from the trust are governed by Social Security principles. When a disabled person receives benefits from the trust, the benefits are counted as income for the purposes of eligibility for Social Security. (In other words, not too much is sent out, because then you would be ineligible).
Monies sent in the form of in-kind distributions for food and shelter are under the rubric of “unearned income”, and possibly will reduce disability payments by a maximum of one-third.
Both revocable and irrevocable trusts are considered resources if they contain the assets of an individual, and the trust will be thought of as a resource when the trustee can pay earnings to or for the benefit of the beneficiary.

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