What is a Special Needs Trust?

Source of Funding: In a Special Needs Trust, the beneficiary has a vested entitlement to assets such as an inheritance or personal injury settlement at the time the Special Needs Trust account is established.

Qualification: The CRT is a qualified Special Needs Trust under federal law [42 U.S.C.A. Section 1396p (d) (4) (C)].

Benefits: Funds can be placed in a Special Needs Trust account with the CRT without jeopardizing the beneficiary’s entitlement to government benefits.

Upon Death: As with all federally qualified first-party Special Needs Trust accounts, federal law requires that, at the beneficiary’s death, the balance in the trust account must be used to repay Medical Assistance that has been expended on behalf of the beneficiary.

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