Payback provisions are required for a qualified special needs trust
Self-settled special needs trusts must have a payback provision to be considered an exempt trust under the federal and state Medicaid program. A Medicaid applicant under 65 can transfer his or her excess resources (assets) into a “special needs trust” and avoid the usual transfer penalties, but only if the trust meets all of the requirements of the federal and state law. Also, if...
Special Needs Trust can’t be created by beneficiary’s agent under power of attorney
Federal law allows a person who receives or is applying for Medicaid or Supplemental Security Income (SSI), which are means-tested programs, to transfer their excess resources into a Special Needs Trust that was “established for the sole benefit of the disabled individual by a parent, grandparent, legal guardian or the disabled individual or a court.” 42 U.S.C. 1396p(d)(4)(A)...
Special Needs Trusts play Vital Role for SSI & Medicaid Recipients
A person with disabilities who is incapable of engaging in substantial gainful activity for self-support in the competititve workplace may be receiving Supplemental Security Income (SSI) and the Medicaid benefits for health care that accompany the SSI. http://www.state.nj.us/humanservices/dmahs/clients/medicaid/abd/index.html The person may reside in the community, in an assisted living...