Trusts 3 Flashcards
42 USC 1296p(d) treatment of trust amount
For purposes of this subsection, an individual shall be considered to have established a trust if
Special needs trust
- Assets of the individual were used to form all or part of the corpus of the trust
- and if any of the following individuals established such trust other then by will
a. the individual
b. the individuals spouse
c. a person, including a court or adminsitrative body, with legal authority to act in place of or on behalf of the individual or individuals spouse
d. a person, including any court or administrative body, acting at the direction or upon the request of the individual or the individiuals spouse
42 USC 1296p(d) treatment of trust amount
In the case of a trust the corpus of which includes assets of the individual and assets of any other person or person the provisions of this subsection shall apply to
Special needs trust
the portion of the trust attributable to the assets of the individual
42 USC 1296p(d) treatment of trust amount
This subsection shall not apply to any of the following trusts
1. A trust containing the assets of an individual under the age of 65 who is disabled and which is established for the benefit…
Special needs trust
of such individual, or a court of the state, will reiveve all amounts remaining in the trust upon death of such an individual up to an amount equal to the total medical assistance paid on behalf of the individual under a state plan under this subchapter
42 USC 1296p(d) treatment of trust amount
This subsection shall not apply to any of the following trusts
2) A trust established in a state for the benefit of an individual if…
Special needs trust
- The trust is composed only of pensions, social security and other income to the individual (and accumulated income in the trust)
- The state will recieve all amounts remaining in the trust upon the death of such individuals up to an amount equal to the total medicaid assistance paif on behalf of the idividual under a state plan under this subchapter, and
- the state makes medical assistance available to individuals , does not make such assistance available to individuals for nursing facilities
42 USC 1296p(d) treatment of trust amount
This subsection shall not apply to any of the following trusts
c) A trust containing the assets of an individual who is disabled that meets the following conditions:
Special needs trust
- THe trust is established and managed by a non-profit association
- a seperate account is maintained for each beneficiary of the trust, but, for purposes of investment and management funds, the trust pools these accounts
- Accounts in the trust are established solely for the benefit of individuals who are disabled by the parents, grandparents, or legal guardian of such individuals, by such individuals, or by a court.
- To the extent that amounts remaining in the beneficiaries account upon the death of the beneficiary are not related by the trust, the trust pays to the state from such remaining amounts in the account an amount equal to the total amount of medical assistance paid on the behalf of the beneficiaty under the state plan unfer this subchapter.
42 USC 1296p(d) treatment of trust amount
Third party trusts
Special needs trust
Third parties may also establish special needs trust for beneficiaries to help the beneficiaries qualify and maintain eligibility for the medicaid
42 USC 1296p(d) treatment of trust amount
provides that any payments that could be made under any circumstances from
either the principal or income are concidered resources “available” to the individual
the question often becomes whether the trust is a support or discretionary support trust
in which whatever the benficiary can compel are “available assets” or something else, such as purely discretionary trust or a supplemental needs trust
42 USC 1296p(d) treatment of trust amount
