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.
New Hampshire Supplemental Needs Trust for Third Party — Disabled Beneficiary: A Comprehensive Guide Introduction: The New Hampshire Supplemental Needs Trust for Third Party — Disabled Beneficiary is an essential legal tool designed to protect and enhance the quality of life for individuals with disabilities in New Hampshire. By establishing this type of trust, third parties can prepare for the financial future of their disabled loved ones while ensuring they continue to qualify for government benefits such as Medicaid and Supplemental Security Income (SSI). Key Concepts: 1. Supplemental Needs Trust: A trust specifically tailored to preserve a disabled individual's eligibility for means-tested governmental benefits by providing supplemental assistance for their supplemental needs. 2. Third Party Trust: A trust created and funded by someone other than the disabled beneficiary, such as a family member, friend, or organization, to provide additional financial support. 3. Disabled Beneficiary: An individual with a qualifying disability, whether physical, mental, or developmental, who is eligible for governmental benefits. Types of New Hampshire Supplemental Needs Trust for Third Party — Disabled Beneficiary: 1. Revocable Supplemental Needs Trust: This type of trust can be amended or revoked during the lifetime of the trust settler. It offers flexibility in managing assets and is often used to respond to changing circumstances. 2. Irrevocable Supplemental Needs Trust: Once established, an irrevocable trust cannot be modified or terminated without the beneficiary's consent. It provides added asset protection and helps secure government benefits eligibility. 3. Pooled Trust: Also known as a "community trust," a pooled trust is managed by a nonprofit organization that combines the assets of multiple beneficiaries for investment purposes. Its primary advantage is that smaller contributions can be made, making it accessible for families with limited financial resources. Benefits and Advantages: 1. Preserving Government Benefits: By using a New Hampshire Supplemental Needs Trust, disabled beneficiaries can continue to receive Medicaid and SSI benefits without exhausting their financial resources. 2. Asset Protection: Assets placed in the trust are protected from being counted as part of the beneficiary's resources when determining eligibility for government assistance programs. 3. Ensuring Quality of Life: This trust allows funds to be used for supplemental expenses not covered by government benefits, such as medical treatments, therapies, education, transportation, and entertainment. 4. Ongoing Support: The trust can provide a long-term solution, safeguarding the disabled beneficiary's financial stability even after the death of their caregiver or when their caregivers are no longer able to provide assistance. 5. Estate Planning: Establishing a trust early on can be an integral part of a comprehensive estate plan, providing peace of mind for both the beneficiary and their loved ones. Conclusion: The New Hampshire Supplemental Needs Trust for Third Party — Disabled Beneficiary is an invaluable legal instrument that ensures individuals with disabilities can access necessary government benefits while improving their overall quality of life. Whether it is a revocable or irrevocable trust or a pooled trust, this type of trust safeguards the financial well-being of disabled individuals, allowing them to thrive and live independently while being secure in their financial future.
