Posted on November 18, 2021
Establishing A Special Needs Trust Is Important
If a Special Needs Trust is not created, benefits may be cut or eliminated if the person has more than the maximum amount that the government allows.
What are a Special Needs Trust in Arizona?
Instead of leaving money and property to the incapacitated person, the family can place them in the Trust. The special necessity trust in Arizona is named to the incapacitated person as a beneficiary.
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A Trustee is then appointed to spend the Trust money on behalf of your loved ones. The Trust funds can be used to pay for costs beyond what your loved one receives in governmental benefits. This includes vacation, travel expenses, and recreational activities. Medical and dental expenses would need to be paid out-of-pocket.
A Trust for Supplemental Needs and First Party
An Irrevocable Trust called a First Party Supplemental Needs Trust can be established for disabled persons under 65 years of age using their assets. This trust is used most often when the disabled person may be able to receive an inheritance or settlement that would increase their assets beyond the $2,000 limit.
The funds must not be placed in a First Party Special Needs Trust. If this happens, Medicaid benefits will be halted and the disabled person will have to pay their medical bills using the assets they have received up to the $14,000.00 limit.
The Trust funds must be used for the benefit of disabled individuals. Additionally, the Trust language must contain provisions that allow the state Medicaid agency the right to recover any funds left in the Trust beyond the amount it spent on the disabled person.