A special needs trust is established to prevent people from losing benefits from certain government programs after receiving a settlement. An influx of wealth can make one ineligible for benefits from Supplementary Security Income (SSI), Veterans Aid and Attendance, Medicaid, and government housing. A special needs trust supplements but does not replace, these benefits by paying for non-covered services or equipment. Below are the applicable laws to establishing a special needs trust in Idaho.
Federal Law
U.S. Code Section 1396p.(d)(4)(A).
(4) This subsection shall not apply to any of the following trusts:
(A) A trust containing the assets of an individual under age 65 who is disabled (as defined in section 1382c(a)(3) of this title) and which is established for the benefit of such individual by the individual, a parent, grandparent, legal guardian of the individual, or a court if the State will receive all amounts remaining in the trust upon the death of such individual up to an amount equal to the total medical assistance paid on behalf of the individual under a State plan under this subchapter. Full text
Idaho Law
68-1405. SPECIAL NEEDS TRUSTS.
(1) If a court orders that money of a minor or incompetent person be paid to a special needs trust, the terms of the trust shall be reviewed and approved by the court and shall satisfy the requirements of this section. The trust shall be subject to the continuing jurisdiction of the court, and is subject to court supervision to the extent determined by the court. The court may transfer jurisdiction to the court in the county where the minor or incompetent person resides.
(2) A special needs trust may be established and continued under this section only if the court determines all of the following:
(a) That the minor or incompetent person has a disability that substantially impairs the individual’s ability to provide for the individual’s own care or custody;
(b) That the minor or incompetent person is likely to have special needs that will not be met without the trust; and
(c) That money to be paid to the trust does not exceed the amount that appears reasonably necessary to meet the special needs of the minor or incompetent person.
(3) If at any time it appears that:
(a) Any of the requirements of this section are not satisfied or the trustee refuses without good cause to make payments from the trust for the special needs of the beneficiary; and
(b) That the Idaho department of health and welfare or a county or city in this state has a claim against trust property, then the Idaho department of health and welfare, the county or the city may petition the court for an order terminating the trust.
(4) A court order for payment of money or property to a special needs trust shall include a provision that all statutory liens properly perfected at the time of the court’s order, and in favor of the Idaho department of health and welfare or any county or city of this state, shall be satisfied first.
2018 Idaho Statutes, Title 68, Chapter 14, Section 68-1405, Special Needs Trusts Requirements.
