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 New Hampshire.
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
New Hampshire Law
POLICY SR 18-15
Also known as Trusts for Disabled Individuals, there are two separate types of these trusts: (1) those established by the individual, a parent, grandparent, guardian, or court, and (2) those established and managed by a non-profit organization. They are not counted as a resource when they meet the following conditions.
A trust containing the assets of an individual under age 65 who has been determined disabled by DHHS or the Social Security Administration (SSA) is not counted in determining eligibility for medical assistance if:
For Trusts Established Prior to December 13, 2016:
• A parent, grandparent, legal guardian of the individual, or a court established the trust for the benefit of the individual; and
• The trust contains a provision that upon the individual’s death, DHHS will receive all amounts remaining in the trust, up to an amount equal to the total amount of medical assistance paid on behalf of the individual.
For Trusts Established On or After December 13, 2016:
• The individual, a parent, grandparent, legal guardian of the individual, or a court established the trust for the benefit of the individual; and
• The trust contains a provision that upon the individual’s death, DHHS will receive all amounts remaining in the trust, up to an amount equal to the total amount of medical assistance paid on behalf of the individual.
After the individual turns 65, the trust is still not counted as a resource. However, any addition or augmentation of the trust after that date is treated as a transfer of assets for less than fair market value. New Hampshire, Division of Economic and Housing Stability, Special Needs Trusts Established by Individuals With Disabilities.
