Special Needs Trust Law
What kind of a special needs trust may be accepted by Medicaid?According to the special needs trust law, a third party special needs trust may be formed if an individual is planning for Medicaid in the future. This means that an individual whose special needs trust is funded by another person may be eligible for Medicaid. If an individual funded their own special needs trust, they may not be eligible for Medicaid.
Should a special needs irrevocable trust be amended in order to appoint a new trustee?A special needs irrevocable trust may not have to be amended to appoint a new trustee. The current trustee may resign from their position by submitting a resignation letter and the new trustee may be appointed according to the specifications mentioned in the trust. The new trust may then inform the trust members about the resignation of the old trustee and their own appointment.
What can a beneficiary ask for from a special needs trust?According to the special needs trust law, a beneficiary may request for any medical needs that may not be covered by Medicaid. They may also request for things like clothes, appliances, rent and transportation. However, it may be up to the trustee to decide if the things that the beneficiary has asked for may be given to them and to what extent a beneficiary can ask for things from the trust. In some situations, whether a beneficiary gets what they ask for from the trust may also depend on what the trust has. The beneficiary may approach the trustee with their request and the trustee may inform the beneficiary if their request has been approved or not. It is the trustee’s fiduciary duty to provide the beneficiary with whatever they may ask for whenever possible by the trust.
What is the maximum amount of money that may be put into a special needs trust?As per the special needs trust law, there may be no limit to the amount of money that can be put into a special needs trust. Any amount of money may be put into the trust.
Who would an automobile be registered to if it was purchased by the special needs trust for the beneficiary?An automobile that is purchased by a special needs trust for a beneficiary may be registered to the trust. If it is registered in the name of the beneficiary, it may be considered to be an asset of the beneficiary. This would prevent the beneficiary from receiving SSI benefits.
What can a beneficiary of a special needs trust do if a trustee refuses to perform their fiduciary duty?If a trustee of a special needs trust refuses to perform their fiduciary duty, the beneficiary of the trust may take action against the trustee in court and request for them to be removed from the position of a trustee. The beneficiary may request the court to appoint a new trustee instead.
The special needs trust is governed by many state and federal rules. It is important for you to know these rules in order to understand how the trust works. These rules may differ depending on your state and jurisdiction. It may not be easy for you to find information about the special needs trust on your own. Put your questions to an Expert now for information and insights that can help you tackle your case in the proper manner.