Summit Structured Settlements
755 S.E. Frontier Suite 101
Waukee, Iowa 50263
Voice: 515.987.6888
Fax: 515.987.6999
Toll Free: 866.267.1177
info@summitsettlements.com
Disclaimer
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Special Needs Trusts
It takes careful planning when money or property is being received by someone with a
disability. Otherwise, the ability to receive Supplemental Security Income (SSI)
and Medicaid benefits may be jeopardized. By setting up a "special needs trust",
most,if not all of these problems can be avoided.
Owning a house, a car, furnishings, and normal personal effects does not affect
eligibility for SSI or Medicaid. But other assets, including cash in the bank,
can disqualify you from benefits. For example, if you leave your loved one
$10,000 in cash, he or she won’t be able to get SSI or Medicaid.
How a Special Needs Trust Can Help
A way around losing eligibility for SSI or Medicaid is to create what’s called a
"Special Needs Trust". Instead of property being received directly, the money or
property can be sent to the Special Needs Trust.
An assigned trustee, will have complete discretion over the trust property and
will be in charge of spending money on the disabled person’s behalf. Because the
trust beneficiary has no control over the money, SSI and Medicaid administrators
will ignore the trust property for program eligibility purposes. The trust ends
when it is no longer needed -- commonly, at the beneficiaries death or when the
trust funds have depleted. When the beneficiary dies Medicaid has can assert a lien on the Trust property.
Once the lien issue has been resolved, the Trust property is then free to be distributed according to the
Trust document, probate, or other directing authority. If the Trust property is depleted,
Medicaid has no lien against the Trust. |
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