Frequently Asked Questions





 


Q: Is there a difference between a special needs trust and a supplemental needs trust?

A: Yes.  Both types of trusts can be established to benefit a person with disability.  Both can be set up to supplement government benefits, and both are irrevocable.  The primary difference between a special needs trust and a supplemental needs trust is how each is funded.

A supplemental needs trust is funded by the disabled individual.  For example, if the individual receives money from a lawsuit or settlement, or if they receive an inheritance, the funds can be placed in a supplemental needs trust. 

A special needs trust is funded by assets from other people, like parents or grandparents.  For example, parents can set up a special needs trust for their disabled child, the intent of which is to ensure the child is cared for after the parents die.

An estate planning attorney familiar with supplemental and special needs trusts in Pennsylvania can explain the differences and limitations further.


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