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.
Kentucky Supplemental Needs Trust for Third Party — Disabled Beneficiary is a specialized type of trust established in Kentucky to support individuals with disabilities while protecting their eligibility for government benefits. This trust is designed to supplement, not replace, important public assistance programs such as Medicaid and Supplemental Security Income (SSI). The primary objective of the Kentucky Supplemental Needs Trust is to provide additional financial support for disabled individuals without jeopardizing their eligibility for means-tested programs. By establishing this trust, families and loved ones can ensure that their disabled beneficiaries have access to resources for their specialized needs and improved quality of life. There are two main types of Kentucky Supplemental Needs Trust for Third Party — Disabled Beneficiary: 1. General Kentucky Supplemental Needs Trust: This type of trust is funded by third parties, such as family members, friends, or any other individual or organization apart from the beneficiary. The funds are managed by a designated trustee who has the authority to make distributions in a way that does not interfere with the beneficiary's eligibility for public benefits. The trustee can use the trust funds to cover various expenses above and beyond what government assistance provides, such as medical equipment, therapies, recreational activities, education, and housing enhancements. 2. Pooled Kentucky Supplemental Needs Trust: Alternatively, a disabled individual or their family can choose to participate in a pooled trust program. Pooled trusts are established and managed by nonprofit organizations. In this setup, the assets are pooled together for investment purposes and administered by a professional trustee. Each beneficiary has a separate account that is established within the pooled trust. The trustee then manages the investments and makes appropriate distributions to meet the beneficiary's needs as per the established guidelines. The Kentucky Supplemental Needs Trust for Third Party — Disabled Beneficiary offers families and loved ones peace of mind by ensuring that individuals with disabilities can enjoy enhanced financial support without compromising their eligibility for crucial government assistance programs. This trust serves as a valuable tool to improve the lives of disabled individuals, providing a safety net that helps cover the costs associated with their well-being, medical care, education, and overall quality of life.
