Supplemental Needs Trust must pay back to Medicaid
Supplemental Needs Trusts that are established under the provision will include a Medicaid repayment provision. This means that any funds that are used must be repaid to the state Medicaid program. This repayment must be made for any services that are provided to the individual prior to and after the trust has been formed. The provision will provide for reimbursement of Medicaid when the beneficiary of the trust dies. The trust cannot be paid back by using any trust corpus that would remain.
Supplemental Needs Trust funded by parents or third-party
The one thing that does not abide by all other rules is a Supplemental Needs Trust that has been funded by a third-party source or by parents. These trusts do not need to pay back Medicaid. In this case, the only assets that are in the Trust that are subject to repayment are the assets that belonged to the disabled individual. The trust would have been transferred into the Supplemental Needs Trust. Individuals should be aware of this exception to the repayment provision.
Read more information on Medicaid:
- What is a self-settled trust?
- What is a Pooled Trust?
- Medicaid Sitemap
- Medicaid Rules Purchasing Annuities
- Medicaid Transfer Assets
- Medicaid Gifting Rules
- Medicaid Joint Accounts
- Hide Assets from Medicaid
- Hide Assets from Medicaid
- Medicaid Home Equity
- Medicaid Laws
- Medicaid Annuity
- Medicaid Income First Rule
- Medicaid Long Term Care Insurance
- Medicaid Look Back Period
- Medicaid Life Estate
- Medicaid Loan
- Medicaid Deficit Reduction Act
- Medicaid Case Study
