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 Maryland.
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
Maryland Law
COMAR 10.09.24.08-2 Medical Assistance Eligibility
(c) Special Needs Trusts
As with any other trust, a special needs trust may only be considered a resource for the A/R if some or all of the funds going into the trust were from the resources or income of the A/R or the A/R‘s spouse. Also, it must meet the definition of a resource, as being accessible to the A/R or the A/R‘s spouse. To be not countable as a resource, a Special Needs Trust established after August 10, 1993, must meet all the following criteria below in 1-11 (as specified in COMAR 10.09.24.08-2C).
