Whether you struggle with a disability or you are the parent, grandparent or guardian of a disabled individual and you want to set up a trust to help them, it is essential to take a close look at supplemental needs trusts. A supplemental needs trust (SNT) can provide a number of advantages to those who struggle with a disability, such as safeguarding Medicaid and other government benefits and providing peace of mind.
It is critical to familiarize yourself with the process of creating and managing an SNT.
Setting up a supplemental needs trust
According to New York City’s Human Resources Administration, a supplemental needs trust can benefit those who have a certified disability. Whether you want to set up an SNT for yourself, your child or your grandchild, it is essential to understand that you must create the trust before the beneficiary reaches the age of 65.
In addition, it is pivotal to carefully review the fiduciary duties that trustees have. Those who breach their fiduciary duties could face criminal prosecution.
Supplemental needs trusts and trustee responsibilities
If you become the trustee of an SNT, you need to review your responsibilities. For example, trustees must manage the SNT, maintain records, report to the Department of Social Services and close the trust. Managing an SNT can prove challenging, which highlights the importance of having a clear understanding of your obligations.
By setting up an effective supplemental needs trust, you can make life easier, provide financial security and protect your disabled loved one’s best interests.