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 Indiana.
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
Indiana Law
IC 12-15-2-17 Exclusion of resources in determining eligibility for Medicaid; conditions.
b) The office may apply this section only to the following Medicaid applicants or Medicaid recipients:
(1) An individual whose eligibility for Medicaid does not require a determination of income by the office.
(2) An individual who is at least sixty-five (65) years of age when age is a condition of eligibility.
(3) An individual whose eligibility is being determined on the basis of being blind or disabled, or on the basis of being treated as blind or disabled.
(4) An individual who requests coverage for long term care services and supports for the purpose of being evaluated for an eligibility group under which long term care services or supports are covered, including the following:
(A) Nursing facility services.
(B) Nursing facility level of care services provided in an institution.
(C) Home and community-based services.
(D) Home health services.
(E) Personal care services.
(5) An individual applying for Medicare cost-sharing assistance.
