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 Wyoming.
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
Wyoming Law
Chapter 18: Medicaid Eligibility.
(I) To qualify for a Special Needs Trust exception and exclude the resources within the trust, the Special Needs Trust shall:
(1.) Be irrevocable;
(2.) Be established for the sole benefit of an
individual who is under age sixty-five (65) and disabled according to the criteria set forth
in 42 U.S.C. § 1382c(a)(3);
(3.) Contain only the assets of a disabled
individual who is under age sixty-five (65) when the trust is established. Any assets placed
in the trust after age sixty-five (65) are not subject to the exception;
(4.) Be established by a parent, grandparent, legal guardian or a court consistent with Wyoming Statutes §§ 42-2-403(f), 4-10-401(a)(iv) and 3-3-607(a)(vi); and
(5.) Provide that the state shall receive all amounts remaining in the trust upon the death of such individual up to an amount equal to the total amount of medical assistance paid on behalf of the individual.
Wyoming, Department of Health, Chapter 18, Rules and Regulations for Medicaid, Section 8. Aged, Blind or Disabled Eligibility.
