Feds are Stepping into Clarify New Rules for Special Needs Trusts

Posted: August 25, 2017 by AMCPress And Co in Disability News
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News has just came out about how the Feds are stepping into clarify news for special need trusts. The special needs trust will have new level of flexibility and federal officials are ensuring that state Medicaid directors understand the impactications. 

Under the new law that was passed last year, individuals with disabilities can for the first time establish trusts and be able to save money. 

The law that was put into play was made to make saving money easier for those who have disabilities can create a trust for themselves. Previously, the trusts had to be created by third party. 

Federal Medicaid official are offering guidance on what the changes mean for state programs. 

Brian Neale wrote in a letter “A trust established on or after December 13, 2016, by an individual with a disability under age 65 for his or her own benefit can qualify as a special needs trust, conferring the same benefits as a special needs trust set up by a parent, grandparent, legal guardian or court.”

Brian Neale is the director of the Center for Medicaid and CHIP Services. He penned the letter this month. Neale also stated in the letter that the other defining features of special needs trust remain unchanged. 

The qualifications as a special needs trust. Brian Neale stated that the trust must contain the assets of an individual with disabilities must be under the age of 65. The trusts have been created to benefit the individuals with disabilities. One of the provisions include that any remaining assets be repaid back to the state upon a person’s death up to the value that the state will provide to medical assistance. 

In many cases many individuals with disabilities will be faced with a cap on their assets to meet to continue to qualify to for Medicaid and other government programs. 

There’s only a few ways that individual with disabilities can be accure more assets without losing eligibility to Medicaid and other government programs. 

Allowing individuals with disabilities to form trust for themselves will give them the supports to gain independence. 

These trust will give more opportunities to individuals with disabilities for the chance to live an independent life without fear of losing their benefits. 

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