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.
Utah Supplemental Needs Trust for Third Party — Disabled Beneficiary is a legal arrangement designed to help disabled individuals maintain eligibility for government assistance programs while still benefiting from additional financial support. This specific type of trust is established by a third party, such as a family member or friend, for the benefit of a disabled individual. The purpose of this trust is to ensure that the disabled beneficiary receives supplemental funds that can be used to enhance their quality of life, while not jeopardizing their eligibility for programs like Medicaid or Social Security Income (SSI). By setting up a Utah Supplemental Needs Trust, both the disabled beneficiary and the third party can enjoy peace of mind, knowing that the beneficiary's needs will be adequately met in a way that doesn't interfere with their government benefits. There are several types of Utah Supplemental Needs Trusts for Third Party — Disabled Beneficiaries, including: 1. Revocable Supplemental Needs Trust: This type of trust allows the third party to maintain control over the assets and make changes to the trust terms during their lifetime. 2. Irrevocable Supplemental Needs Trust: Once established, this trust cannot be modified or revoked without the consent of the trustee and the beneficiary. It provides a greater level of protection for the beneficiary's assets. 3. Pooled Trust: A pooled trust is managed by a non-profit organization, pooling the assets of multiple beneficiaries for investment purposes. Each beneficiary has a separate account within the trust, which allows for individualized distribution of funds while still maintaining eligibility for government benefits. 4. First-party Supplemental Needs Trust: Unlike the third-party trusts mentioned above, this type of trust is established using the disabled beneficiary's own assets, such as an inheritance or lawsuit settlement. It still serves the purpose of preserving eligibility for government assistance programs while allowing for supplemental support. Establishing a Utah Supplemental Needs Trust for a third party disabled beneficiary requires careful planning and legal expertise. It is crucial to consult with an experienced attorney specializing in disability law and estate planning to ensure that the trust is properly established and complies with all relevant laws and regulations. By doing so, the disabled beneficiary can benefit from added financial stability and support, without endangering their access to essential government assistance programs.
