Legal Question in Wills and Trusts in Indiana
Special Needs Trust
We just settled a lawsuit over an accident involving one of our minor children (11 years old). The funds (less than $40,000) were set up in a trust through our lawyer's office. Our child is both mentally and physically handicapped with a mentallity of an infant. Since our child will never be able to take care of themself, the court declared us the guardian and will allow us to withdraw funds to cover medical expenses related to our child. The judge is very strict and very slow to release money. I recently read about medicaid waivers and SSI and was considering applying for them for our child but found out we would not be eligible because of the money in the trust fund. I figured that I will be losing about $10,000 a year in expenses that would be covered if I didn't have this money in this particular trust. After reading some of the rules regarding SNT's, I found that many of her non-covered living expenses could be paid if the settlement were placed in an SNT. Would I be able to have my lawyer petition the court to transfer the money into a Special Needs Trust and thereby be able to qualify for SSI and medicaid? Thank You!
2 Answers from Attorneys
Re: Special Needs Trust
If you are unable to use the "trust fund" money without prior court approval, then it may not count against the assets for SSI eligibility. Verify that with SSA. If the trust fund renders your son ineligible for SSI benefits, then you should be able to petition the court for transfer of funds to a special needs trust, probably an ARCII trust. Good luck.
Re: Special Needs Trust
Yes, without knowing more, I think there is a good chance you could do that. YOu are very bright to pick up on this and you should consult an attorney to do it. Mary
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