Posted by Carol on 3/10/06

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Anyone have some experience with special needs trusts?
I've read the statute but I can't seem to find the answer
to this question: does the disability have to be
permenant to qualify for the medicaid disability special
needs? Or, when the disability ends does the beneficiary
have to pay the remaining funds back to the state the same
as if the beneficiary had died? Example: parent and child
are in an auto accident. Parent is killed. (other parent
is not around, no responsibility or help) child, 21, is
seriously injured, requiring weeks of hospitalization and
several surgeries are foreseen in the future. No health
insurance. Since Child has no income, qualifies for
medicaid and so medical bills are taken care of. During
probate it is discovered that Parent had a modest
retirement account of which child is beneficiary. The
retirement account gives Child the option of drawing what
parent would when reaching 65 (15 years from now) or
cashing out now. Child will most likely not be completely
disabled for life but will need several more surgeries
before it is all said and done. Child is living with Aunt
who is caring for her until she is recovered. It seems
that a special needs trust would be the thing to do here,
but I've only done it in connection with medicaid and
elderly in long term care. When Child recovers will the
remainder of the trust have to be used as medicaid payback
(assuming there is something left)? Of course I have
considered the obvious answer, refer the case to someone
who does nothing but trusts, but I still would like to
know the answer for my own information and possibly later
use.

special needs trusts and medicaid, 3/10/06, by Carol.

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