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 Missouri.
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
Missouri Law
1025.015.04.01 Special Needs Trusts, Supplemental Needs Trusts, and Pooled Trusts.
Special Needs Trusts (SNT) established under Section 1917(d) of the Social Security Act (42 U.S.C. 1396p(d)) are not counted as available resources to the individual provided the assets are held in the name of the trust. The assets of the individual may be used to establish the trust. Proceeds remaining upon the death of the individual will be claimed by MO HealthNet Division Estate Recovery, up to the amount expended for care for the individual. Proceeds remaining after distribution to MHD Estate Recovery will be distributed to residual beneficiaries in accordance with the terms of the Trust.
SNT include the following:
Trusts established by a parent, grandparent, guardian, representative payee or court for the benefit of an individual who is disabled, under age 65 and, using the individual’s own funds. (42 U.S.C. 1396p(d)(4)(A))
Trusts established by a disabled individual, parent, grandparent, guardian, representative payee or court for the disabled individual using the individual’s own funds, where the trust is made up of pooled funds (pooled special needs trusts) and managed by a non-profit organization for the sole benefit of each individual included in the trust. Pooled special needs trust co-mingle resources from individual disabled beneficiaries for investment but account for them separately. (42 U.S.C. 1396p(d)(4)(C)) Trusts established by the disabled individual, under age 65, on or after December 13, 2016. The 21st Century Cures Act Section 5007 allows individuals to establish their own special needs trusts and qualify for the exception to resources under Section 1917(d)(4)(A) of the Social Security act. This provision does not apply to trusts created prior to December 13, 2016.
Missouri Statutes, 1025.015.04 Trust Funds and Restricted Accounts.
