This form is a trust used to provide supplemental support for a disabled beneficiary without loss of government benefits. It may be revocable or irrevocable, as the funds are contributed by a third party, and not the beneficiary. The Omnibus Budget Reconciliation Act of 1993 established the supplemental needs trusts.
Kansas Supplemental Needs Trust for Third Party — Disabled Beneficiary is a legal arrangement created to protect the financial assets of individuals with disabilities, ensuring they can maintain eligibility for government benefits and assistance programs. This type of trust is designed for disabled individuals who require support and assistance in managing their finances due to physical, developmental, or mental impairments. It enables them to secure their financial future while preserving their eligibility for government benefits such as Medicaid and Supplemental Security Income (SSI). The Kansas Supplemental Needs Trust for Third Party — Disabled Beneficiary is established by a third party, such as a family member or friend, for the benefit of the disabled individual. The trust is set up to provide supplemental support beyond the public benefits received by the beneficiary. By creating this trust, the third party can ensure that the disabled beneficiary's needs are met, including medical expenses, housing, education, transportation, and recreational activities, without jeopardizing their eligibility for government benefits. There are primarily two types of Kansas Supplemental Needs Trust for Third Party — Disabled Beneficiary: 1. Pooled Supplemental Needs Trust: This type of trust is managed by nonprofit organizations and allows multiple individuals with disabilities to contribute their assets into a pooled fund. The funds are then managed collectively, and each individual's account is segregated within the trust. 2. Individual Supplemental Needs Trust: This trust is established for the benefit of a single disabled individual. It allows a third party, usually a family member, to contribute assets specifically for the beneficiary's needs and ensures that the funds are managed according to their requirements. Both types of trusts require careful planning and adherence to legal guidelines to ensure that the beneficiary's eligibility for government benefits is not compromised. Consulting an attorney experienced in special needs planning is crucial to navigate the complex rules and regulations surrounding these trusts. In conclusion, the Kansas Supplemental Needs Trust for Third Party — Disabled Beneficiary is an essential tool for individuals with disabilities to protect their finances and secure their long-term well-being. Whether it's a Pooled Supplemental Needs Trust or an Individual Supplemental Needs Trust, establishing these trusts can provide peace of mind to the disabled beneficiary and their loved ones.
