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.
Keywords: Mississippi, Supplemental Needs Trust, Third Party, Disabled Beneficiary, types Description: A Mississippi Supplemental Needs Trust for Third Party — Disabled Beneficiary is a legal arrangement that allows individuals with disabilities to receive additional financial support without jeopardizing their eligibility for public assistance programs such as Medicaid and Supplemental Security Income (SSI). This type of trust is referred to as a "third party" trust because the funds in the trust are provided by individuals other than the beneficiary themselves. The trust is typically established by a parent, grandparent, or another family member, although it can also be set up by a friend or even an organization. By creating a Mississippi Supplemental Needs Trust, the disabled beneficiary can enjoy the benefits of a trust-controlled fund that can be used for a variety of needs not covered by public assistance programs. Some possible uses include medical expenses, education and vocational training, assistive devices and technology, transportation, housing, and even entertainment or recreation activities. There are different types of Mississippi Supplemental Needs Trusts for Third Party — Disabled Beneficiaries, namely: 1. Revocable Trust: A revocable trust allows the granter (the person setting up the trust) to modify or revoke the trust at any time. This type of trust provides flexibility in the event circumstances change, and it can be undone if the beneficiary's financial situation improves or if new laws or regulations are enacted. 2. Irrevocable Trust: An irrevocable trust, as the name suggests, cannot be modified or revoked once it is established. This type of trust provides a higher level of asset protection, as the assets placed in the trust are no longer considered part of the granter's estate. However, the lack of flexibility means careful consideration should be given before setting up an irrevocable trust. 3. Pooled Trust: A pooled trust combines the resources of multiple beneficiaries into a single trust, managed by a nonprofit organization. This type of trust is ideal for individuals with disabilities who don't have a family member or friend willing or able to act as a trustee. Pooled trusts are managed by professionals who invest and distribute funds according to the specific needs of each beneficiary. In conclusion, a Mississippi Supplemental Needs Trust for Third Party — Disabled Beneficiary is a valuable financial tool for individuals with disabilities who rely on public assistance programs. By establishing this trust, disabled individuals can receive additional support for various needs while maintaining their eligibility for vital government benefits. Different types of trusts, including revocable, irrevocable, and pooled trusts, provide flexibility and asset protection based on the unique circumstances and preferences of the granter.
