Trusts

The types of trusts accepted by MSNT are:

Third Party Special Needs Trusts

Funds for this type of trust are provided by parents, family members or friends. Funds of the beneficiary or his/her spouse may not be used to establish this type of trust. Third party special needs trusts do not jeopardize SSI or Medicaid benefits and are not subject to Medicaid payback requirements.

Pooled Medicaid Payback Trusts

This type of trust meets the requirements of 42 U.S.C. Section1396p(d)(4)(C) for pooled trusts. The funds used to establish the trust are the beneficiary’s. The trust may be established by the individual, a parent, grandparent, legal guardian, or a court. There are no age restrictions on this type of trust. Funds remaining at the death of the beneficiary may be claimed by the state to offset medical assistance costs.

First Party Special Needs Trusts

This type of trust meets the requirements of 42 U.S.C. Section1396p(d)(4)(A) for special needs trusts. The beneficiary’s funds may be used to establish the trust, but the trust must be established by a parent, grandparent, legal guardian, or court for the benefit of the disabled individual. The individual must be under the age of 65 when the trust is established. Funds remaining at the death of the beneficiary may be claimed by the state to offset medical assistance costs.

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