The Minnesota Special Needs Trust is a fund that helps provide financial support for people with disabilities who have income. The Special Needs Trust allows people with disabilities to save for the future without losing their eligibility for state and federal benefits, including Medi-Cal, Disabled Adults Children (DAC), and Supplemental Security Income (SSI).
The trust is managed by a trustee, who is responsible for investing and managing the money in the trust, as well as distributing money from the trust on behalf of the beneficiary.
The Minnesota Special Needs Trust allows disabled individuals to receive assistance from the government while maintaining control of their assets. This trust provides a way for you to maintain your independence, cover your personal needs, and still be eligible for the financial benefits that help you live the life you want.
Special Needs Trusts are commonly used to supplement public benefits programs such as Supplemental Security Income (SSI) and Medical Assistance. In addition, they may be used to pay for housing, education, recreation and other items not covered by public benefits programs.
When considering whether a Special Needs Trust is right for you and your loved ones, it is important to consult with an attorney who has experience working with families of people with disabilities and experience in drafting trusts.
The Trust is an irrevocable trust created by a court order pursuant to an application by the parent, guardian or conservator of the disabled beneficiary. The Trust is designed to hold and manage assets for the benefit of a disabled person. The trust may be used solely for supplemental benefits not otherwise provided by Medicaid, SSI, school district programs and other sources of funding. Also, any inheritance passed directly to a disabled person which would disqualify him or her from government benefits may be placed in the Trust for his or her benefit.
If you have a disabled child or a loved one with special needs, you may be concerned about how to provide for them after your death. A Special Needs Trust (SNT) is a powerful legal tool that allows you to provide financial support for someone who receives needs-based government benefits such as Supplemental Security Income (SSI) or Medicaid.
In most cases, if a person with special needs inherits money directly, they will lose their eligibility for government benefits. If the beneficiary of your estate plan is receiving SSI or Medicaid benefits, an SNT can receive assets and make distributions to the beneficiary without endangering the beneficiary’s eligibility for government assistance.
The Minnesota State Bar Association has a Special Needs Trust (SNT) that can be used to provide for a child under the age of 65 with a disability. The child must be eligible for Supplemental Security Income (SSI) or Medicaid. If the child is eligible for SSI, the SNT must be a “first party” trust, meaning the assets are from the child.
If the child is not eligible for SSI, but does receive Medicaid benefits, then the trust can either be a first-party or third-party trust. A third-party trust is created by someone other than the beneficiary; an example would be a parent establishing an SNT for his or her child with a disability.
An SNT can also be used to help an individual with disabilities purchase a home, which may be important when trying to meet this person’s needs. This type of trust is called a “Housing Supplemental Needs Trust.”