Supplemental Needs Trusts

A Supplemental Needs Trust (SNT) offers families the security of knowing that their disabled family member will be provided for even if they are no longer available to care for them.  An SNT supplements the government benefits a disabled person receives without jeopardizing eligibility for those benefits. 

In order to help families and individuals take advantage of this important estate planning tool, YAI created Community Trusts I and II, supplemental needs pooled trusts.  The trusts offered by YAI can be funded by families for their loved one (Trust I) or funded by people with disabilities (Trust II). 

YAI Community Trust I is utilized by parents, guardians, grandparents and others who wish to provide funds for their disabled loved one without risking the person’s Medicaid or SSI benefits.  Entry into the trust can be funded all at once, in installments, or through an estate plan (will, life insurance, retirement fund). 

YAI Community Trust II is utilized to protect a disabled person’s benefits when that individual has assets from personal injury awards, inheritances, retirement accounts or social security settlements. 

Both YAI trusts allow beneficiaries to access funds for medical expenses that Medicaid does not cover, such as motorized wheelchairs, specialty medical care and funeral expenses.  The trust can also be used to provide life-enriching experiences such as vacations and recreational activities.

Advantages of the YAI Community Trusts
• YAI provides the trustees, professional staff and expertise to manage the trust.
• By utilizing the pooled trust, the family avoids legal and accounting fees associated with forming and maintaining the trust.
• Conflicts of interest that may arise with a family member as trustee are alleviated.
• The minimum to enter the trust is a modest $25,000, payable over five years, or through an estate plan.
• Administrative fees are low, and paid from the trust. A private trust would involve higher costs.

To learn more about the YAI Community Trusts, you can contact Lauren Marzo, Manager in the Development Department, at lauren.marzo@yai.org or at 212-273-6121.