| If you have a disabled or handicapped child, you worry | | | | public support for any part of their child's welfare. It |
| about their future. Your mind races with question after | | | | may be funded through a will, ongoing lifetime gifts or |
| question. Who will take care of our child if we die? | | | | life insurance. |
| How will our child be cared for? Will government | | | | Supplemental Care Special Needs Trust - This is the |
| benefits be adequate? What if government benefits | | | | most common type of Special Needs Trust. It is |
| end? Will our child obtain adequate medical attention | | | | designed to maximize the use of public funds to |
| when we are no longer around? Who will be our child's | | | | provide for the basic needs of their child. Public support |
| guardian? If you do not have the answers to these | | | | is the primary or sole source of benefits for your child, |
| questions you should be worried. Even if you are a | | | | with this type of trust. It is designed to allow your child |
| family with limited means you can secure the future of | | | | to become and remain eligible for government benefits. |
| your child through an instrument called a Special Needs | | | | Families with limited financial resources are the ideal |
| Trust. A Special Needs Trust provides the financial | | | | candidates for this type of trust. It may be funded |
| infrastructure that blends the public support you | | | | through a will, ongoing lifetime gifts or life insurance. |
| receive from the government with private support | | | | Many Supplemental Care Special Needs Trusts are |
| from the family. If you have a disabled or handicapped | | | | funded primarily by "second-to-die" life insurance |
| child, a Special Needs Trust is a necessity. Not having | | | | policies, which covers both parents, and pays out upon |
| one guarantees an uncertain future for your child. | | | | the death of the second parent. |
| A Special Needs Trust gives you the ability to | | | | In order to qualify for Supplemental Security Income |
| coordinate public benefits your child receives from the | | | | Benefits ("SSI"), your disabled child cannot hold more |
| government with private resources. It is a marriage | | | | than $2,000 in assets (excluding a car and a home). |
| between public and private funding for your child in the | | | | SSI benefits average about $400 per month and this |
| event you are not longer able to provide care for your | | | | money must be spent on basic needs (food, clothing |
| child. Careful planning for a Special Needs Trust can | | | | and shelter expenses). Eligibility for SSI also qualifies |
| allow your disabled child to become and remain eligible | | | | your child for food stamps and Medicaid. Furthermore, |
| for need-based government benefits, such as | | | | Medicaid eligibility also qualifies your child for many local |
| Medicaid and Supplemental Security Income, while | | | | community services, as well. The Special Needs Trust |
| permitting the use of personal family resources that | | | | provides for the needs of your disabled child without |
| can be used for nonbasic needs and quality of life | | | | disqualifying him or her from receiving SSI and |
| extras (vacations, sporting events, camp, travel | | | | Medicaid. |
| expenses, games/toys, entertainment, grooming | | | | The trust document requires that you designate a |
| supplies, uninsured medical or dental services etc). | | | | trustee to oversee the trust. This trustee may be a |
| Types of Special Needs Trusts: | | | | family member, a financial institution, a financial advisor, |
| General Support Special Needs Trust - This type of | | | | a committee or a family friend. This document must |
| Special Needs Trust is designed to serve as the | | | | clearly set forth that the trust funds may not be used |
| primary source of benefits for your child. It is suited for | | | | on basic needs (food, clothing or shelter). Violating this |
| families with the financial means to provide the best | | | | directive means the potential loss of government |
| care money can buy. Such a trust does not rely on | | | | benefits. |