Video Summary

What is the difference between a Supplemental Trust and a Special Needs Trust? Well, I’m not real sure just what you mean by Supplemental Trust, but I’m assuming it’s a Trust whereby the trustees directed to supplement the income or for the benefit of the beneficiary and they have discretion to give the money to the beneficiary and then the money is later dispersed to that person. Usually at a particular age, there may be some definition as far as giving them the income from the Trust or a specific amount, or it can be simply discretionary on the part of the trustee until the beneficiary reaches a certain age. Many times, you do this for your children so that they don’t receive it at age 18 whenever they become adults. You say you want the trustee to hold it until such time as they’re 25 and use the money up until that time for their health, education, and maintenance so that they can pay for their college education, and then you can direct that a portion of it be dispersed at 25 or whatever age you would like. You can send it out on an incremental basis. Whereas a special needs trust is whenever you have someone who has special needs, and the money is not ever dispersed to the beneficiary since it would disqualify them from any state programs or federal programs where they’re receiving benefits. And so that money must be used independently and so it’s not used for the benefit of the special needs person. If you have any questions, give me a call at (727) 847-2288.