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.
Oregon Supplemental Needs Trust for Third Party — Disabled Beneficiary: A Comprehensive Guide Introduction: The Oregon Supplemental Needs Trust for Third Party — Disabled Beneficiary is a legal tool designed to provide financial support and maintain eligibility for government benefits for individuals with disabilities. This trust is established by someone other than the disabled beneficiary, commonly a family member or loved one, and aims to enhance the individual's quality of life without jeopardizing their eligibility for governmental assistance programs. In Oregon, there are various types of Oregon Supplemental Needs Trusts for Third Party — Disabled Beneficiary, including Irrevocable and Revocable Trusts. 1. Irrevocable Oregon Supplemental Needs Trust: The Irrevocable Oregon Supplemental Needs Trust is commonly used when someone wishes to shield assets from being considered as resources for Medicaid or Supplemental Security Income (SSI), ensuring their disabled loved one can still receive essential benefits. Once established, this trust cannot be modified, amended, or revoked, providing security for the beneficiary's long-term financial well-being. 2. Revocable Oregon Supplemental Needs Trust: The Revocable Oregon Supplemental Needs Trust offers flexibility and control to the trust's settler (the person creating the trust), who can make changes or revoke the trust during their lifetime. However, it is important to note that while assets in this trust may not be counted for determining eligibility for certain benefits, they are subject to Medicaid recovery upon the beneficiary's passing. 3. Funding the Trust: To ensure the trust is financially viable, the settler may choose to fund it with various assets such as cash, real estate, life insurance policies, stocks, or personal belongings. It is important to consult with an attorney and financial advisor to determine the most appropriate assets for funding the trust. 4. Trust Administration: To carry out the intentions of the trust and provide for the beneficiary's supplemental needs, a trustee is appointed. The trustee manages and distributes assets according to the trust's terms while complying with state and federal laws. Additionally, the trustee may arrange for various supplemental needs, such as medical expenses, education, transportation, housing, vacations, and more. The trust should provide clear guidelines on how the trustee should fulfill their duties. 5. Medicaid and SSI Eligibility: One of the primary objectives of the Oregon Supplemental Needs Trust is to preserve the beneficiary's eligibility for Medicaid and SSI programs. When structured correctly, the assets held within the trust are not considered as available resources, allowing individuals to maintain essential benefits. Proper estate planning guidance is crucial to ensure compliance with Medicaid and SSI regulations. Conclusion: The Oregon Supplemental Needs Trust for Third Party — Disabled Beneficiary serves as a vital tool for maintaining government benefit eligibility and preserving financial stability for disabled individuals. Whether opting for the irrevocable or revocable approach, this trust provides an avenue for disabled beneficiaries to receive essential benefits while enhancing their overall quality of life. Consulting with legal and financial professionals is highly recommended establishing a trust that meets the unique needs of the disabled individual and their family.
