Supplemental And Special Needs Trusts

Protecting Children Who Need Ongoing Care

Families with a child who has qualified for government funds as a result of a physical or mental disability face a dilemma when planning their estates. Namely, property inherited by that child, whether outright or in trust, could potentially disqualify the child from further participation in the government program.

Fortunately, the creation of either a supplemental needs trust or a special needs trust can circumvent this dilemma, enabling special needs individuals to continue receiving benefits. Quinlivan & Hughes, P.A., is deeply experienced in establishing such trusts for individuals and their families. Based in St. Cloud, we serve clients throughout Minnesota. We are ready to assist you, too.

How Does A Special Needs Trust Work In Minnesota?

The state of Minnesota and the federal government have recognized that a recipient of government benefits may retain those benefits if he or she is the beneficiary of a supplemental or special needs trust. This is because these trusts' benefits do not duplicate any benefit provided by the government. Examples of such benefits include the trustees' purchase of a special van for the child's transportation needs, the payment of tuition for special training and similar expenses.

A supplemental needs trust is established with property furnished by a third person, such as a parent or the parent's estate. A special needs trust, meanwhile, is established with funds furnished by the challenged individual, such as proceeds from a settled injury claim or property that the challenged individual owned prior to his or her qualification for government benefits.

Special needs trusts and supplemental needs trusts have different requirements for the disposition of any trust property that remains at the time of the death of the challenged individual. Any property that remains in a special needs trust must first be used to reimburse the government agency that provided the benefits to the deceased beneficiary, and any remaining property may be distributed to other family members or any other beneficiary.

Determine If A Special Needs Trust Is Beneficial For Your Family

A carefully considered trust may provide an opportunity for the family of a challenged child to provide benefits that enhance the child's life without jeopardizing his or her government program benefits. To learn more, arrange an appointment with our lawyers by calling 320-200-4928. You can also schedule a consultation online.