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 Nebraska.
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
Nebraska Law
CHAPTER 23-000 RESOURCES FOR NON-MAGI PROGRAMS 23-001.05A6b(6)(b)(ii) Exceptions.
A trust is not considered available if it is established for a disabled client sixty-four (64) years old or younger (receiving or eligible to receive SSI, RSDI, or ABD) and is a:
1. Special needs trust: A trust containing the assets of the applicant/client and established solely for the benefit of the applicant/client by his/her parent, grandparent, legal guardian, or a court, if the state will receive all amounts remaining in the trust upon the death of the applicant/client or on termination of the trust up to the amount of total Medicaid paid on behalf of the applicant/client; or
2. Pooled trust . . .
Nebraska, Department of Health and Human Services, Medicaid Eligibility, 477 NAC 23.
