What it is?

A trust organized primarily for a beneficiary likely under a life-long disability that prevents the beneficiary from functioning independently (earning a living, etc.). This  irrevocable trust is usually formed by a third-party to ensure that the beneficiary has a source of funds that can supplement rather than supplant public assistance benefits like Medicaid and Supplemental Security Income (“SSI”).The purpose is to ensure life-long funds for the beneficiary and provide for more than just the absolute minimum required to survive. The public assistance programs at issue are “means-tested” meaning that the beneficiary must not only be disabled but must also be “poor” as defined by the applicable rules which may involve state and federal guidelines.

Who

A family with a permanently disabled child who will be unable to support himself or herself over their lifetime.

Result

To ensure that the trust fund is not considered for purposes of being eligible for the applicable public assistance programs, allowing the beneficiary to access both their trust funds and apply for public support.