Special needs trusts are established to provide for our loved ones with disabilities. These trusts are useful because they allow the beneficiary (the person the trust is set up for) to continue to receive benefits they may be collecting from the government.
There are many different types of special needs trusts, each with a unique set of factors and restrictions. While this makes the decision a bit more complex, it also offers some variety so that families can pick the option that works best for them. Below is a table displaying the different issues to consider when choosing the asset. These decisions can seem daunting, but we need to make sure we take care of those who are most important to us, and the experienced attorneys at Painter & Associates are here to help you.
|
Issues |
STABLE Account |
Discretionary Supplemental Needs Trust |
Supplemental Services Trust |
Special Needs Trust |
Pooled Trust |
|
Who can create the asset? |
Person with disability, legal guardian, conservator, or agent |
3rd party |
Anyone |
Person with disability, parent, grandparent, guardian, or Court |
Person with disability, parent, grandparent, guardian, or Court |
|
Who can use the asset? |
Only persons disabled before age 26 |
Any person |
Beneficiary qualifying for services through State Department of Disabilities or County Board of Developmental Disabilities or Department of Mental Health and Additional Services |
Disabled individual under the age of 65 |
Any disabled individual |
|
Who can fund the asset? |
Anyone |
3rd party |
3rd Party |
Anyone |
Anyone |
|
How many can a person have? |
One |
Unlimited |
Unlimited |
Unlimited |
Unlimited |
|
Who can control the asset? |
Person with disability, legal guardian, conservator, or agent |
Trustee who is not the person with a disability or their spouse must have complete discretion |
Trustee who is not the person with a disability or their spouse |
Trustee who is not the person with a disability or their spouse |
Nonprofit organization must serve as the Trustee |
|
How much can be paid into the asset per year? |
$15,000 per year |
Unlimited |
Unlimited |
Unlimited |
Unlimited |
|
Is there a cap on how much can be in the account? |
Yes, |
No |
The principal contribution must not exceed $246,000 |
No |
No |
|
What type of distributions can be made? |
"Qualified Disability Expenses" which include basic living expenses, housing, transportation, education, assistive technology, employment training, legal fees, health and wellness, and financial management |
Distributions for things not covered by Medicaid or SSI (cannot be used for medical care, comfort, maintenance, health, welfare, or general well-being); and at a complete discretion of the Trustee. |
Distributions only for services not already received by qualifying programs and are above and beyond the basic necessities. Distributions may be made for travel, vacation, participation in hobbies, sports, exercise equipment, memberships, etc. |
Distributions only for things that public benefits do not cover |
Distributions for things not covered by Medicaid or SSI |
|
How are funds disbursed upon death of person with disability |
- Qualified Disability Expenses |
Funds may be preserved for another beneficiary and with proper drafting, funds will not have to be turned over to the State |
Not less than 50% of the assets must be returned the State of Ohio to be used for the benefits of others who do not have such a trust |
State reimbursed for 100% of medical assistance paid on behalf of beneficiary, if available |
State reimbursed for 100% of medical assistance paid on behalf of beneficiary, if available |
Nathan had the confidence, the education and the experience we were looking for. He listens and communicates with a personal touch we just didn’t find before, and he’s tough as nails - he won’t back down. We trust him.
