Special Needs Planning

A Special Needs Trust is used to hold money for your children without that money counting as an asset for Supplemental Security Income (SSI) or Medicaid. You can have the money in the trust used to pay for services that are not covered by government programs, insurance, or for extras that improve their quality of life like electronics, transportation, tickets, hobbies, and more.

A Supplemental Needs Trust can be the beneficiary of your life insurance policy or your entire estate. Anybody, not just you, can contribute to the special needs trust. And, there isn’t a Medicaid payback in these trusts. The money can be passed on as you want, not as the Government dictates with certain kinds of special needs planning.

This is a  special needs trust authorized by federal law.  These are used when it is the person’s money.  For example, if Bobby inherits some money from an uncle, then Bobby would need a first part special needs trust to hold the money.

These trusts must have a Medicaid payback provision.

This type of trust is setup before any inheritance occurs and holds the inheritance.  Because the person never owns the money, this third party special needs trust does not affect their benefits.

For example, Bobby’s mom and dad setup a third party special needs trust for Bobby.  When they pass away, their joint life insurance policy pays to the trust.  Bobby gets the advantage of the money without losing Medicaid, SSI, and any other means tested benefits.

These trusts DO NOT have a Medicaid payback provision.