April 7, 2016

Individual Special Needs Trusts

Individual Special Needs Trusts, also known as d4a trusts or Medicaid Payback Trusts, are written by an attorney on behalf of an individual beneficiary. The individual SNT trust is irrevocable and must be:

  • Created for a disabled individual under the age of 65. The trust must be funded before age 65, but can continue as the beneficiary lives beyond age 65.
  • Created by the individual, individual’s parent, grandparent, legal guardian, or a court for the sole benefit of the disabled individual

For a first party d4a trust, which is created with the beneficiary’s assets, the trust provides that upon the death of the beneficiary, Medicaid will receive any remainder balance in the trust, up to the amount paid by Medicaid for services to the individual during their lifetime.

For a third party d4a trust, which is created with the assets of someone other than the beneficiary, there are options for the third party to designate funds remaining in the trust after the death of the beneficiary to a remainder beneficiary.

Please contact Martha Morgan, Trust Officer, at 269-788-1690 with questions, or send an email through the link below.

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