Is anyone familiar with special needs trusts?

DHs aunt passed away last year and she set up a special needs trust for our niece. Our niece lives is 16 in Florida with her parents and has a chromosome disorder that causes her to be pretty disabled. She receives state Medicaid services in the state of Florida that he parents cannot afford to do without. There is now a major debate going on between the rest of th heirs of the estate abou whether or not our niece can take this trust without jeopardizing her benefits. her parents think since the will was written here in NY and they are in Florida it is incorrect.
The way I read the rules about these situations is that our niece is allowed to have money in this type of trust without her benefits being affected because of a federal law. it is my understanding that if she were to pass away and the trust has money in it then the trust money would have to go into the Medicaid pot to repay benefits that she used.

Does anyone have more info on these situations?

Re: Is anyone familiar with special needs trusts?

I don't know much about them but I'm pretty sure that her benefits won't be affected.

I think it's for her use, above and beyond her basic needs. Not to cover food, clothing, or shelter, which should be covered by social security. The trust should say where the money goes if she passes away.

trust

Message edited 5/16/2012 8:46:19 PM.

Re: Is anyone familiar with special needs trusts?

hmmm the difference in states may make things different..
I'd check with her Service Coordinator or Case worker as they should know. Also you (someone) can call the State Developmental Disabilities office in FL and they should connect you to someone who would know about this kind of thing.

Re: Is anyone familiar with special needs trusts?

Who is the trustee?

That person should know, and honestly, always check with the attorney who prepared it to be clear.

I have done Service Coordination for years and understand basically how trusts work and what they can be used for, but in the end, I leave it to the professionals (i.e. attorneys) who are the experts with how they ultimately can be translated.

Many of the families I work with who oversee the trust still have to refer back to the lawyer on many occasions for issues regarding the trust.

I also have had families have the attorney handle things like Medicaid recerts because many times SCs also miss/aren't clear on things and it can screw up the client's Medicaid.

Re: Is anyone familiar with special needs trusts?

I'm not sure exactly what the rules are in Florida, but having monetary resources - in a bank account, for instance - can absolutely affect eligibility for benefits. You should definitely speak with an attorney, in Florida, who can delve into the issues with you.

Re: Is anyone familiar with special needs trusts?

A special needs trusts is set up for people who have certain government benefits, so that they can have limited access to the money, without losing their benefits. A guardianship is appointed, to oversee the expenses of the trust, which are monitored by the courts. There are certain stipulations with regard to what she can spend it on. She can maintain her resource without compromising her benefits. The piece that you should be aware of is, no matter how much money she has when she dies, all of it goes to the government and cannot be willed to anybody.

Re: Is anyone familiar with special needs trusts?

Re: Is anyone familiar with special needs trusts?

all money should be funneled through the trust. In and out. Her guardian (parent) can draw from it for most expenses related to her needs. It will not effect her benefits. That is in NY. Florida may be different.