You can provide for a family member with special needs
without jeopardizing eligibility for Medicaid.
Overview of Special Needs Trusts in Medicaid Planning
One method that can be used to help individuals with special needs achieve and maintain eligibility for programs such as Medicaid is known as a "Special Needs Trust". Special Needs Trusts are trusts designed specifically to protect the assets of individuals with disabilities, and where possible, to permit such persons to achieve and/or maintain eligibility for needed public benefits under governmental programs such as Medicaid and Social Security.
Since individuals with disabilities often lack the ability and capacity to handle and manage their own financial affairs, these trusts provide protection to them by limiting and restricting the availability of funds to both beneficiaries and their creditors.
The trusts are referred to as “special needs” or “supplemental needs” trusts since they are designed to permit the expenditure of funds only for a beneficiary’s supplemental needs, i.e., those needs that are not provided under available programs and sources, including governmental programs such as Medicaid and Social Security.
Special Needs Trusts provide for the placement of assets and resources under the name and control of a trustee and out of the name and control of the beneficiary in order to prevent such resources from being deemed to be “countable resources” for purposes of the beneficiary’s eligibility and/or continuing eligibility for governmental programs, benefits, and services.
Special Needs Trusts afford recipients many significant advantages in attempting to seek eligibility under programs such as Medicaid.
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DISCLAIMER: This website has been prepared for general informational purposes only. It is not intended to, and does not, constitute legal advice.
Use of these materials does not create or constitute an attorney-client relationship.
