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.
South Dakota Supplemental Needs Trust for Third Party — Disabled Beneficiary is a specialized legal arrangement designed to support individuals with disabilities who are eligible for government benefits. Also known as Special Needs Trusts or Supplemental Care Trusts, these trusts empower disabled individuals to maintain eligibility for public assistance programs while ensuring they have access to additional funds for their various needs. In South Dakota, there are three main types of Supplemental Needs Trusts for Third Party — Disabled Beneficiaries: 1. Pooled Trusts: Pooled trusts are managed by non-profit organizations, allowing multiple beneficiaries to pool their resources together. This provides cost-effective administration for smaller trust amounts. Each beneficiary has a separate account within the trust, and funds can be used to supplement the beneficiary's needs without affecting their eligibility for governmental assistance programs. 2. Individual Trusts: Individual trusts are designed for disabled individuals who have assets they wish to protect or have received a settlement or inheritance. These trusts are managed by a designated trustee, who oversees the disbursement of funds based on the beneficiary's unique needs. As with the pooled trusts, individual trusts aim to maintain eligibility for government benefits while enhancing the beneficiary's quality of life. 3. Third-Party Trusts: Third-party trusts are established using the assets of a third party, such as a family member or friend, to provide for the disabled beneficiary's supplemental needs. These trusts can be created during the lifetime of the donor or through a will or living trust. Third-party trusts allow for more flexibility in terms of funding sources and usage while still preserving the beneficiary's access to government benefits. Creating a South Dakota Supplemental Needs Trust for Third Party — Disabled Beneficiary requires careful consideration of legal requirements and a thorough understanding of government benefit programs. The primary goal is to enhance the disabled individual's quality of life by ensuring their financial needs are met while concurrently safeguarding their eligibility for vital public assistance programs like Medicaid or Supplemental Security Income (SSI). Navigating the complexities of special needs trusts necessitates the assistance of an experienced attorney specializing in disability and estate planning. These professionals can guide families and individuals through the intricate process of establishing and managing a South Dakota Supplemental Needs Trust, ensuring compliance with federal and state laws and providing peace of mind for all involved parties.
