Reply to Special Needs Trust out of money?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]OP again. He was on Medicaid and living at home for years until his mother died then the house was sold and his proceeds (1/3, he had two siblings) were pit in a checking account that was already made with the name Special Needs Trust for the benefit of ______.[/quote]

It’s really hard to shield money from Medicaid. If the money was for his care and there were no limits on how it was spent (like he was given $10k per year or something like that), then it’s not surprising that the money went fast. Even if there were limits, Medicaid would have required it to be spent for his care and Medicaid would have reduced its payment for the apartment and services.  That might have been worse for all of you. It sounds like you all want him to have things beyond what public funds pay for and you would have had to pay for them yourselves if the trust had annual limits which would have to go for the cost of his care. You have to remember that Medicaid is for the destitute. [/quote]

This.  If he was already on Medicaid before his mother died, Medicaid has rules on how an inheritance is handled and used.  He would be required to spend down the inheritance before Medicaid resumes paying for his needs.

You can read up on Medicaid rules online but the family may want to see an attorney on how to best handle any possible future financial gifts and bequests to him because Medicaid rules will apply.[/quote]

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