Get Professional Assistance From a Special Needs Trust Lawyer

Anyone who is currently or anticipates receiving means-tested (income and asset dependent) benefits, who is about to receive money in excess of those means tested levels should consider a special needs trust. You should consult with a special needs trust lawyer before making the decision, as there may be low cost alternatives (i.e. ABLE accounts or Pooled-Trusts) which may better suit your situation. 

What is required to set up a Special Needs Trust?

The following are required to set up a special needs trust:

• The beneficiary must be under the age of 65 and disabled (as defined under federal law);
• the trust is established for the sole benefit of the disabled individual through the actions of the individual, a parent, a grandparent, a legal guardian, or a court; and
• the trust provides that the State(s) will receive all amounts remaining in the trust upon the death of the individual up to the amount equal to the total medical assistance paid on behalf of the individual under a State Medicaid plan. 

Who may set up a Special Needs Trust?

As mentioned above, a special needs trust may be established through the actions of the individual, a parent, a grandparent, a legal guardian, or a court. Importantly, prior to 2016, the disabled individual could not set-up their own special needs trust. 

What can a Special Needs Trust pay for?

A special needs trust is meant to supplement or enhance the quality of life of the beneficiary. Governmental benefits are meant to provide for essentials, like medical care, food, clothing, and shelter. Payments from the trust must supplement and not pay for these essentials. 

Some examples of what a special needs trust may pay for include, but are not limited to: 

• Medical and Dental expenses not covered; 
• Special Equipment like wheelchairs or specially equipped vans; 
• Travel, which can include reasonable costs of a necessary companion; 
• Recreation and Entertainment;
• Electronic equipment and appliances, and computers; 
• A vehicle;
• Insurance; and 
• Prepaid burial expenses.