XPost: alt.bumbling.idiots.the.fbi, alt.security.neighborhood   
   From: nforystek@neotext.org   
      
   Welcome to The National Special Needs Network Inc.   
      
   Legal Services Provided Through   
      
   Jeffrey H. Minde Attorney And Counselor At Law PA   
      
   The hiring of a lawyer is an important decision that should not be based   
   solely on advertisements.  Before you decide, ask us to send you free   
   written information about our qualifications and experience.   
      
      
      
   SUPPLEMENTAL NEEDS TRUSTS: SOME FREQUENTLY ASKED QUESTIONS   
   © 2006, 2008, 2010, 2011 Jeffrey H. Minde, Esq.   
      
      
      
    Scales of Justice on white background   
      
      
      
   WHY USE A SUPPLEMENTAL NEEDS TRUST?   
      
   To Preserve Governmental Benefits And Protect Assets...   
      
   A Supplemental Needs Trust (sometimes called a Special Needs Trust) is a   
   specialized legal document designed to benefit an individual who has a   
   disability. A Supplemental Needs Trust is most often a "stand alone"   
   document, but it can form part of a Last Will and Testament. Supplemental   
   Needs Trusts have been in use for many years, and were given an "official"   
   legal status by the United States Congress in 1993.   
      
   A Supplemental Needs Trust enables a person under a physical or mental   
   disability, or an individual with a chronic or acquired illness, to have,   
   held in Trust for his or her benefit, an unlimited amount of assets.  In a   
   properly-drafted Supplemental Needs Trust, those assets are not considered   
   countable assets for purposes of qualification for certain governmental   
   benefits.   
      
    Such benefits may include Supplemental Security Income (SSI), Medicaid,   
   vocational rehabilitation, subsidized housing, and other benefits based upon   
   need. For purposes of a Supplemental Needs Trust, an individual is   
   considered impoverished if his or her personal assets are less than   
   $2,000.00.   
      
   A Supplemental Needs Trust provides for supplemental and extra care over and   
   above that which the government provides.   
      
   Supplemental Needs Trusts had been used for years based upon case law. In   
   1993, Congress created an exception under the amendments to the Omnibus   
   Budget and Reconciliation Act (OBRA-93) which specifically authorized the   
   use of Supplemental Needs Trusts for the benefit of individuals who are   
   under the age of 65 years and disabled according to Social Security   
   standards. The Social Security Operations Manual authorizes the use of   
   Supplemental Needs Trusts to hold non-countable assets.   
      
   Each Supplemental Needs Trust is its own "entity" with its own Federal   
   Identification Number (Employer Identification Number) issued by the   
   Internal Revenue Service. The Trust is not registered under either the   
   Grantor's or the Beneficiary's Social Security Numbers.   
      
   According to Congress a Supplemental Needs Trust must be irrevocable. A   
   properly-drafted Trust will include provisions for Trust termination or   
   dissolution under certain circumstances, and will include explicit   
   directions for amendment when necessary.   
      
      
      
   WHAT CAN A SUPPLEMENTAL NEEDS TRUST BE USED FOR?   
      
   To Ensure That Your Disabled Family Member Has Every Opportunity For A   
   Fulfilled And Happy Life . . .   
      
   According to the law, a Supplemental Needs Trust can be used for   
   "supplemental and extra care over and above what the government provides." A   
   properly-drafted Supplemental Needs Trust will work on a "sliding scale";   
   that is, in the impossible event that the government provides for 100% of   
   the disabled beneficiary's needs the Trust will provide 0%. If there are no   
   governmental benefits available, the Trust can provide 100%. Most people   
   fall somewhere along the scale, and the Trust supplements governmental   
   coverage. If a beneficiary falls into a Medicare "doughnut hole" for   
   example, it becomes the Trust's job to cover the shortfall.   
      
   Although there are Medicaid rules that say that the Trust cannot be used for   
   housing or food, these rules have to be interpreted carefully. For example,   
   there is no restriction on purchasing an accessible home or making   
   accessibility adaptations to an existing home and having the Trust own or   
   pay for them.  Likewise, although foodstuffs are not strictly allowable   
   under the rules, social events such as dinner parties  are; likewise,   
   vacations and entertainments are permitted.   
      
   It is important to remember that a Supplemental Needs Trust is a living   
   legal document that is meant to not only maintain benefits eligibility, but   
   also to bring enjoyment and new, positive experiences to the beneficiary.   
      
      
      
   MY FAMILY IS WEALTHY AND WE'RE NOT TOO CONCERNED ABOUT GOVERNMENTAL   
   BENEFITS. WHY BOTHER CREATING A SUPPLEMENTAL NEEDS TRUST?   
      
   To Protect Your Disabled Family Member.   
      
   Other types of Spendthrift or Family Trusts aren't appropriate for Special   
   Needs persons because they don't address the specific needs of the disabled   
   beneficiary or his future lifestyle. Even in situations where a family may   
   have significant resources to help a disabled family member a Supplemental   
   Needs Trust should be established to address these issues.   
      
   Monies placed in the Trust remain noncountable assets and allow the   
   beneficiary to qualify for available benefits and programs. Why sacrifice   
   services that might be available to your relative now and in the future?   
      
   Just as importantly, Trust funds are not subject to creditors or seizure.   
   Therefore, if the disabled beneficiary should ever be sued in a personal   
   injury or other type of lawsuit, the beneficiary is not a "deep pocket"   
   because monies placed in the Trust are not subject to a judgment.   
      
      
      
   IF HAVING MONEY CAUSES PROBLEMS FOR MY DISABLED DAUGHTER, WHY CAN'T I JUST   
   LEAVE THAT MONEY TO HER BROTHER SO THAT HE CAN LOOK AFTER HER?   
      
   Leaving Money To Others Can Create Serious Problems...   
      
   "Disinheritance" was commonly used before the use of Supplemental Needs   
   Trusts was officially recognized by Congress.   
      
   Disinheritance as a means of providing for a disabled or ill person puts the   
   assets at risk. A non-disabled sibling holding assets for the benefit of a   
   disabled sibling could be subject to such liabilities such as judgments from   
   automobile accidents, a bankruptcy, or a divorce.   
      
   Asset transfers, particularly of the beneficiary's own funds, other than to   
   Supplemental Needs Trusts are usually considered "Transfers for purposes of   
   benefit qualification," and are subject to a 36-to-60 month "look back"   
   period, which in effect means that the disabled beneficiary might not be   
   eligible to receive benefits for up to five years after the date of   
   transfer. Transfers to Supplemental Needs Trusts are exempt from this "look   
   back" and do not cause a disqualification.   
      
   In such circumstances, the assets meant to benefit the disabled or   
   chronically ill person could go to pay the judgment creditors or the   
   estranged spouse of the non-disabled sibling. Using a Supplemental Needs   
   Trust guarantees that the funds will be held only for the benefit of the   
      
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