Third-Party Special Needs Trust PC1356-Print

ESTATE PLANNING

SPECIAL NEEDS TRUST

Third-Party Special Needs Trust

A special needs trust, also known as a supplemental needs trust, is an irrevocable trust set up to supplement the needs of a person with special needs or a disability without jeopardizing the beneficiary’s eligibility for important government benefits. These include Supplemental Security Income (SSI), Medicaid, vocational rehabilitation, and subsidized housing. The primary goal of the trust is to provide for the needs of the individual throughout his or her life. Special needs trust funds are commonly used to pay for personal care attendants, home furnishings, out-of-pocket medical and dental expenses, education, recreation, and physical rehabilitation. ESTABLISHING AND FUNDING THE TRUST

BENEFITS OF A THIRD-PARTY TRUST     THE TRUST ALLOWS A

BENEFICIARY TO QUALIFY, OR CONTINUE TO QUALIFY, FOR PUBLIC ASSISTANCE AND STILL RECEIVE FUNDS FROM THE TRUST FOR SUPPLEMENTAL NEEDS. NOTE: THE RULES GOVERNING PUBLIC ASSISTANCE ARE COMPLEX AND CHANGE OFTEN SO IT IS IMPORTANT TO STAY UP-TO-DATE WITH THE HELP OF YOUR ATTORNEY TO AVOID JEOPARDIZING THE BENEFICIARY’S ELIGIBILITY.    THE TRUSTEE MAY MAKE PAYMENTS FOR PRODUCTS AND SERVICES NOT COVERED BY GOVERNMENT PROGRAMS.    THE TRUST CAN HOLD ASSETS, SUCH AS REAL ESTATE, STOCKS, BONDS, AND OTHER TYPES OF INVESTMENTS. 

A grantor – typically a parent, grandparent or legal guardian – supplies the funds for the trust, a trustee holds and administers the funds according to the grantor’s wishes and the designated beneficiary receives the benefit of the funds. The grantor’s wishes are typically spelled out in a document that gives the trustee direction about how the beneficiary should spend the trust assets. Because your loved one has no control over the money

GRANTOR (PARENTS OR RELATIVE)

SPECIAL NEEDS TRUST

Personal care, education, recreation, etc.

GOVERNMENT BENEFITS

SPECIAL NEEDS FAMILY MEMBER

Housing, food, rehab

and funds can only be used for the beneficiary’s supplemental needs, SSI, and Medicaid administrators will not include the trust property for program eligibility purposes.

Contact a Commerce Trust advisor to learn how a special needs trust can help you care for a loved one after you are gone. 1-855-295-7821 | commercetrustcompany.com

Wealth | Investments | Planning Commerce Trust Company

Commerce Trust Company is a division of Commerce Bank. PC1356

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

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