Peterson Law Office, LLC

Calls Answered 24 hours a day, 7 days a week 952-641-7312

Peterson Law Office, LLC
Email

CALL

I wrote the book on Minnesota probate.

Supplemental Needs Trusts In Minnesota

Last updated on June 25, 2024

In Minnesota, a supplemental needs trust (SNT) is a special trust designed to provide financial support for someone with a disability without interfering with any government assistance they receive, such as Minnesota Health Care Programs (MHCP) and Supplemental Security Income (SSI).

At Peterson Law Office, LLC, our attorney, Bill Peterson, understands the value of a comprehensive estate plan and has been helping families in the Bloomington and Twin Cities area with their goals for more than 50 years.

What Is The Difference Between A Supplemental Needs Trust And A Special Needs Trust?

Both kinds of trusts are used for the same purposes. They can enrich a disabled person’s quality of life by paying for out-of-pocket medical expenses, personal care, home health services, entertainment, home furnishings, electronics, hobby items, vacations and transportation. However, supplemental needs and special needs trusts are not exactly the same.

Here are some key differences:

  • A supplemental needs trust is a third-party trust, funded by people like the disabled individual’s parents, grandparents or other relatives.
  • A special needs trust is a first-party trust, funded by the disabled individual. For example, if your adult child was disabled in a terrible accident and received a large settlement from the liable party, that money could be used to fund a special needs trust.
  • Any medical expenses paid for by the government on the beneficiary’s behalf must be repaid from the remaining funds (if possible) in a special needs trust upon the beneficiary’s death.
  • Third-party supplemental needs trusts are not subject to the same medical reimbursement rules, so all remaining assets can pass to any remainder beneficiaries when the disabled individual dies. This allows the family, as a whole, to retain more assets.

The language of a supplemental needs trust is highly specific, and it takes an experienced attorney to make sure one is legally valid but broad enough to accommodate the beneficiary’s changing needs throughout their lifetime.

Call Today To Schedule Your Free Consultation

You can rely on Peterson Law Office, LLC, to help you protect your disabled loved one’s future. Contact us online or call 952-641-7312 today to get started.