Trust Types

MSNT can help determine which Master Trust is appropriate for your situation, whether a First or Third Party Trust. The trust agreement documents will be provided by MSNT upon request for you to complete and submit for review. Sub-accounts with MSNT are established under the Midwest Special Needs Trust Master Trust. 

First Party Trusts

First Party Trust sub-accounts are funded with assets of the individual with a disability. The individual with a disability will be referred to as the Beneficiary. Assets can include personal injury settlements, life insurance payouts, overpayments from Social Security and conserved funds. At termination, the Medicaid program can place a lien on the remainder balance in the sub-account. The Medicaid program must be paid first before any final distributions are issued in accordance with the terms and conditions of the trust agreement.

Third Party Trusts

Third Party Trust sub-accounts are funded with the assets of someone other than the individual with a disability or their spouse. At termination, the Medicaid program cannot place a lien on the remainder balance. Final distributions will be issued in accordance with the terms and conditions of the trust agreement.

Inactive Trusts

The Inactive Trust sub-account allows for pre-planning of future deposits—from life insurance, wills or settlements.  Family members, friends, and even the Beneficiary can open a trust sub-account within the Inactive Trust. 

An initial deposit of $200 along with the applicable trust agreement documents are required to establish an Inactive Trust. $100 is for an enrollment fee and the remaining $100 will be deposited into the Inactive Trust sub-account.