Providing for Special Needs Children Through a Trust

If an individual is going to use government services such as Medicaid, he or she generally cannot exceed the asset limit of $2,000. However, it is possible to get around this requirement by putting assets into a special needs trust. The trust keeps assets out of the beneficiary’s control, and there may be no need to repay the government for benefits paid out to that person.

Fund a Trust With the Beneficiary’s Money

A first-party special needs trust uses funds over which the beneficiary currently has control. The trustee is generally the parent or appointed guardian for the special needs individual. More than one person or entity can be named as a trustee at the same time. This is also referred to as a “Medicaid repay” trust because any money left inside of it when the beneficiary passes will need to be returned to any government agency that provided assistance.

Fund the Trust With Your Own Money

A third-party special needs trust is one that is funded with money that a parent or other family member controls. The difference with this special needs trust funding option is that any money left over after a beneficiary passes can be given to another family member as opposed to being returned to the government. Like other trust options, it will be controlled by a trustee who will most likely be the parent or guardian of the beneficiary.

An Attorney May Work With Special Needs Parents

Consulting with a trust administration lawyer in Las Vegas may make it easier for parents of special needs children to determine the right trust to meet their needs. In addition, this person may also be able to act as a trustee or work with a trustee to ensure that the terms and spirit of the document are being followed.