Legal Question in Wills and Trusts in Texas

Re: special needs trust

Although your trust may have language saying that it is governed by the laws of Arizona, your daughter's Medicaid eligibility is governed by the laws of Texas. So, in reality, what matters to you right now is Texas law.

You should have a Texas elder law attorney review it to make sure it qualifies as a special needs trust under the laws of Texas. If there is nothing in the trust right now, then that's probably all Medicaid needs to know.

If it turns out that this trust does not qualify as a special needs trust in Texas, and it is not funded, then simply abandon it and create a new one that works under Texas law.

The bottom line is that you need Texas counsel to make certain your daughter keeps her Medicaid eligibility in Texas.

Re: special needs trust

Medicaid rules and operations are very tricky.

You say the trust was never funded, yet you placed a house in it. It must have been funded at least as to the house.

You do not state whether the trust is intervivos (I presume, since you placed a house in the trust) or testamentary (takes effect upon your death.)

Issues related to the trust will in large part depend upon the wording of the trust. Was this done by an attorney? If so, why not ask these questions of the attorney who prepared the trust?

What is the subject of the inquiry from Texas? You do not state anything. What is the real issue here? What are you trying to accomplish?

See an estate attorney, or re-draft your question with sufficient detail for a response.

Best regards,

James D. Jenkins