The Research Of Legal Relationship Between Parties In Supplemental Needs Trust

A Supplemental Needs Trust or “SNT” is a trust that allows disabled people to have assets above the Medicaid or SSI income allowances and still qualify for government benefits like Medicaid. This kind of trust is normal in US but new to China. The author happened to have a chance to intern in the Department of Social Service of New York City Government where I worked in the Supplemental Needs Trust program, so when I returned to Shanghai, I want to do a research about it. There are two types of supplemental needs trusts, one is 1st Party SNTs which is created with the disabled person’s own assets, the other is 3rd Party SNTs which is created with someone else’s assets for the disabled person’s benefit. Here we are talking about the later one. This essay analysis the legal relationship between trust parties in a Supplemental Needs Trust. The grantor is the disabled person who has lump sum usually comes from litigation recovery, and the trustee can be either parents or lawyers who take care of the trust assets for the “sole benefit” of the beneficiary. One big difference separate SNT from other trust is that the government plays a role, which is the remainder beneficiary who reviews the accounting submitted by trustees and to protect government’s recovery interest from the trust. This essay talks about how the parties deal with their rights and obligations to balance their power, so that the supplemental needs trust can meet its purpose which is to benefit the disabled person.