Supplemental Needs Trust

A trust for the benefit of an incapacitated person that typically provides that all of its assets are available to be used for the benefit of that person, but that the Trustees are not to use trust assets in the normal course to the extent that the incapacitated person would otherwise be receiving governmental benefits. Accordingly, it is possible, for example, for a parent to create a Supplemental Needs Trust for an incapacitated child without interfering with the child’s Medicaid benefits. Supplemental Needs Trusts often deal with a beneficiary’s non-essentials, such as paying for a vacation, etc.

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