Who can create a special needs trust?
Very often supplemental needs trusts are created by a parent or other family member for a disabled child (even though the child may be an adult by the time the trust is created or funded). But the disabled individual can often create the trust himself or herself, depending on the program for which he or she seeks benefits. Medicaid is the most restrictive program in this regard, making it difficult for a beneficiary to create a trust for his or her own benefit. But even Medicaid has a “safe harbor” allowing for the creation of a supplemental needs trust with a beneficiary’s own money if the trust meets certain requirements. This is sometimes called a “(d) (4) (A)” trust, referring the authorizing statute. – Must the supplemental trust be irrevocable? Yes, if it is created and funded by the person seeking public benefits him or herself. No, if it is created and funded by someone else for the benefit of a person receiving or seeking public benefits. – Are there restrictions on how the fu
