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.
Indiana Supplemental Needs Trust for Third Party — Disabled Beneficiary is a legal document that allows a person with disabilities to receive additional financial support without jeopardizing their eligibility for government benefits such as Medicaid or Supplemental Security Income (SSI). This type of trust is specifically designed to enhance the quality of life for individuals with disabilities while preserving their ability to access public assistance programs. The Indiana Supplemental Needs Trust for Third Party — Disabled Beneficiary can be created by family members, friends, or other interested parties on behalf of the disabled individual. It allows them to set aside funds or assets for the benefit of the disabled beneficiary, which can be used to supplement their daily living expenses beyond what public benefits cover. There are two main types of Indiana Supplemental Needs Trust for Third Party — Disabled Beneficiary: 1. Third-Party Special Needs Trust: This type of trust is created by a family member or friend of the disabled individual using their own assets or funds. It enables the disabled beneficiary to receive financial assistance while ensuring the assets are separate from their own, thereby protecting their eligibility for government benefits. 2. Pooled Special Needs Trust: A pooled trust is established and managed by a nonprofit organization to benefit multiple disabled individuals. Individuals with disabilities can pool their resources into a trust managed by a professional trustee. Each beneficiary has a separate account within the trust, and the funds are disbursed based on their specific needs. Both types of Indiana Supplemental Needs Trust for Third Party — Disabled Beneficiary have similar purposes in mind: to enhance the disabled individual's quality of life by providing supplemental funds for expenses related to education, housing, transportation, healthcare, recreation, and other necessary goods and services. The main advantage of establishing a Supplemental Needs Trust for Third Party — Disabled Beneficiary is that it allows families and loved ones to contribute to the disabled individual's well-being without jeopardizing their eligibility for vital government benefits. By carefully drafting and managing the trust, individuals with disabilities can maintain a higher standard of living and have access to necessary resources that might otherwise be limited due to their financial circumstances. In conclusion, the Indiana Supplemental Needs Trust for Third Party — Disabled Beneficiary is a vital legal instrument that safeguards the financial assistance available to disabled individuals. Whether it is a Third-Party Special Needs Trust or a Pooled Special Needs Trust, these instruments ensure that individuals with disabilities can receive additional financial support while preserving their eligibility for valuable government benefits.
