Supplemental Needs Trusts
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If a client has a disabled or retarded child it is very important to ascertain whether that child is receiving money from
any government program such as Medicaid or the Supplemental Security Income Program (SSI). If a person's child is receiving
Medicaid or SSI a bequest in a Last Will and Testament to that child may eliminate the Medicaid or SSI benefits for that child.
However, if the parent of that disabled or retarded child creates a Supplemental Needs Trust then the child will still be
able to receive Medicaid or SSI or other government means tested benefit and still retain the benefit of the Supplemental
Needs Trust. Federal legislation passed in 1993 and various implementing state statutes established for the first time the
ability for a parent to create a Supplemental Needs Trust for their child who has a disability.
These Supplemental Needs Trusts can provide benefits without affecting eligibility for government benefits such as Medicaid
or SSI or other governmental benefit program. In essence these Supplemental Needs Trusts provide for the provision of funds
to the disabled or retarded child that will supplement but do not replace any government benefits.
© 2000 McMahon Law Firm, Attorney and Counselor at Law