| Special Needs Trust: General Info FAQ Glossary Questions to ask yourself |
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Glossary |
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(d)4A Trust: A (d)4A Trust is a self-settled special needs trust. It is funded with assets of the beneficiary typically a tort victim. It is administered for the benefit of the beneficiary. The income and assets of the trust must be used for the beneficiaries special needs. Assets remaining in the trust at the death of the beneficiary must be used to payback any state Medicaid agency for Medicaid benefits paid on behalf of the Medicaid beneficiary.
Beneficiary: The beneficiary is the person who benefits from the trust. In the case of a special needs trust for tort victims, the beneficiary is the tort victim.
Grantor: A grantor is the person who establishes the trust and transfers assets to the trust. In a special needs trust for a tort victim, the grantor must be the parent, grandparent, guardian or the court.
In-kind Support and Maintenance: In-kind Support and Maintenance (ISM) is food, clothing and shelter furnished by the trust. It affects the SSI payment.
Medicaid: Medicaid is a medical assistance program that pays for medical benefits. It is a means tested program with income and asset limits for Medicaid eligibility purposes. Special needs are needs of the beneficiary of the trust over and above food, clothing and shelter. Examples of special needs are non-refundable air line tickets, stereo system, television set, medical insurance, telephone bills, newspaper subscriptions, furniture, services of a care manager, vacations, travel expenses of relatives, movies, tax payments, medical treatment for which public funds are unavailable, difference between private and semi-private room in an institution, handicap van, school tuition, books and supplies, health and life insurance premiums.
SSI: SSI is an income maintenance program funded by the federal government and administered by the Social Security Administration. Some states have a small supplement to the SSI benefit. SSI is a means tested program which means there are limits on the income and assets of an SSI recipient for eligibility purposes.
Trust Protector: A trust protector is a person designated by the grantor of the trust to protect the interest of the beneficiary. The trust protector oversees the trustee and can be given power to remove and replace the trustee if the administration of the trust is not satisfactory.
Trust: A trust is a legal document under which assets are held and administered for the benefit of a beneficiary where the document spells out the terms and conditions of distribution and the terms by which the trust is to be administered.
Trustee: A trustee is the person who administers the trust in accordance with its terms. The trustee is responsible for investing the funds, accounting for income and expenses and distributions and for making distributions in accordance with the terms of the trust document. |