MAXIMUM LEGAL SERVICES CORPORATION
Special Needs Trust
Professional administration and fiduciary support from MaxCorp.
A Special Needs Trust (“SNT”) is an estate planning document that can provide a way for a person with a disability to continue to receive financial support while remaining eligible for public assistance and government benefits, such as Supplemental Security Income (“SSI”) and Medicaid. SSI pays for food, clothing, and shelter, whereas Medicaid covers basic medical needs. Both programs are needs-based for people with limited income and resources, such as those who are disabled, blind, or age 65 or older.
A SNT allows funds to be used for anything not covered by SSI and Medicaid, such as education, equipment, transportation, entertainment, travel and other personal expenses. A SNT is irrevocable and the beneficiary does not have control over the funds. A Trustee administers the SNT for the benefit of the beneficiary. Often a professional fiduciary, like MaxCorp, is preferred and carefully selected to ensure the administration of the SNT complies with SSI and Medicaid rules and does not disqualify the beneficiary from any benefits.
There are two types of Special Needs Trusts in Hawaii:
(1) Self-Settled, First Party: a person with a disability under the age of 65 can establish a first party SNT with his or her own assets. However, this type of Trust must contain a Medicaid pay-back provision, which means that any remaining funds after the death of the beneficiary must be used to pay back the State for any medical expenses.
(2) Third Party: Family members can set up a third party SNT for a disabled family member, which does not include the Medicaid pay-back provision.
MaxCorp can be designated to provide fiduciary oversight and administrative support for either type of Special Needs Trust (SNT). For Special Needs Trusts, MaxCorp ensures that the trust is administered in accordance with the specific legal terms and constraints of such trusts. Specifically, in addition to providing the typical trustee services, for Special Needs Trusts, MaxCorp’s services may include the following:
– Working with families to identify qualified payments for beneficiaries;
- Paying for services, expenses, and items properly allowed under the legal terms and conditions of the trust; and
- Regularly assessing benefits payable to the beneficiary based on current information