| Supplementary Needs Trusts, also known as Special | | | | maintained for the benefit of the individual with special |
| Needs Trusts, are a reliable way to guarantee a child | | | | needs. |
| with special needs will have the income he or she | | | | The most important thing to remember about a |
| needs while keeping important public benefits like SSI | | | | self-settled trust is that it must contain a payback |
| and Disability. Most Special Needs Trusts are | | | | provision. That is, assets left in Self-Settled trusts after |
| established as third party trusts. That is, people other | | | | the death of the beneficiary cannot be immediately |
| than the beneficiary must fund the trust. | | | | passed on to other heirs. In the case of an individual |
| But what if an individual with special needs is able to | | | | self-settled trust, funds must be used to pay back |
| use his or her own money and wishes to provide | | | | Medicaid. Any monies left in the trust after Medicaid |
| funds for the trust? New York provides for two types | | | | has been repaid may then be distributed to other |
| of exception, or self-settled, Supplemental Needs | | | | beneficiaries. |
| Trusts that may be funded with an individual's own | | | | Funds remaining in a pooled trust must be kept by a |
| money. These are known as individual trusts and | | | | non-profit trustee. Because of this, pooled trusts may |
| pooled trusts. | | | | be a way to provide security during the lifetime of an |
| The difference between individual and pooled trusts | | | | individual with special needs while also leaving funds to |
| lies in both the management of the trust and the | | | | a non-profit organization of importance to your family. |
| treatment of funds left in the trust after the death of | | | | Establishing a Special Needs Trust as a part of your |
| the beneficiary. Individual trusts are similar to third part | | | | estate plan will give your family the security of |
| Special Needs Trusts. They are established for the | | | | knowing that your loved one will be provided with |
| benefit of a single individual and are managed by a | | | | extra income while retaining important public benefits. |
| trustee. Pooled trusts must be set up and managed by | | | | Knowing your Special Needs Trust options will help |
| a non-profit association. According to New York law, | | | | you make the best possible decision for your child. |
| as a provision of a pooled trust, a separate account is | | | | |