A SNT is often established
to maintain the child's eligibility for both Medicaid (a federal program that
pays for medical care for the child) and Supplemental Security Income (SSI,
a federal program that pays cash benefits to cover the costs of food, shelter,
and clothing). Parents, grandparents, or legal guardians may contribute money
to a SNT during their lifetime to provide assets for the child's future. Trust
funds may also come from probate distributions, a living trust, life insurance,
pension plans, or other identified sources.
In some cases, SNT funds
come from tort claim awards and settlements that arise from a lawsuit over medical
malpractice, involving the mother's prenatal care, birth-related injuries, or
early childhood diseases such as meningitis. Tort claim awards and settlements
may be paid by the responsible party in lump sum payments, a structured settlement
that provides for periodic payments that may be funded by an annuity, or a combination
of lump sum and periodic payments. It's important for nurse case managers to
have a general idea of the payment structure, and the funds available, in order
to make realistic recommendations for expenditures from the Special Needs Trust.
The SNT is designed to meet
the supplemental needs of an individual with special needs. Supplemental needs
are the person's needs that are not met by Medicaid, SSI, and other government
benefits. Some examples of these expenditures include the following: