Supplemental Needs Trust



Do You Have a Child
or a Loved One with
a Disability?

Many people with disabilities needs live long lives and outlive their parents. You already know that planning ahead is critical.

Getting your loved one qualified for public benefits, such as SSI (Supplemental Security Income) and Medicaid can be onerous. However, securing and maintaining these benefits can be critical to a family’s financial viability. SSI and Medicaid may be worth hundreds of thousands to millions of dollars over the lifetime of the person with a disability family member, especially if they have expensive medical issues.

Because SSI and Medicaid have income and asset limits, the recipient cannot directly receive money from an inheritance or a settlement or they will lose their benefits. Sometimes well-meaning parents who know this, leave their disabled children out of their Wills. Instead, they leave their assets to their other children in hopes they will take care of the child with special needs. This unfortunate scenario can lead to strained relationships and money mismanagement.

The Law Offices of Carol Bertsch, PC can help maintain public benefits by preparing a Supplemental Needs Trust. This way, you can leave money to a trust for the benefit of your loved one, which allows them to keep their benefits and still reap the advantages of additional money.

Supplemental Needs Trusts We Prepare:

Self-Funded Special Needs Trust
(aka: First-Party Supplemental Needs Trust)

A First-Party Special Needs Trust is established with the beneficiary’s own money. The beneficiary must be under the age of 65 and must be legally disabled. The beneficiary does not have direct access to the trust funds, and upon the beneficiary’s death, any remaining funds goes to the State of Texas to repay medical expenses provided by the state during the beneficiary’s lifetime.

Arc of Texas Master Pooled Trust

The Arc of Texas Master Pooled Trust is a pooled special needs trust managed by The Arc of Texas with approval from the Social Security Administration and the Texas Health and Human Services Commission. The Arc of Texas offers affordable alternatives to traditional bank trusts, has low enrollment costs, and requires low minimum funding requirements. This type of Trust is a good option for someone under 65 who is looking to fund a trust with a small inheritance or settlement.

Third-Party Supplemental Needs Trust

The funds in a Third-Party Supplemental Needs Trust belong to someone other than the beneficiary. Parents, grandparents, or other family members may establish this type of trust to provide for a loved one receiving public benefits.

A third-party-funded trust is also irrevocable, but there is no age requirement and funds can be placed into the trust at any time. When the beneficiary dies, the remaining funds do not go to the state to repay medical expenses. Instead, the grantor determines how the funds will be disbursed, which is usually to other children or relatives.

You may not know what type of special needs trust you need or if one is even appropriate for your situation.
That’s OK. We are happy to discuss your options. Just call us to set up an appointment at (210) 892-4555.