SocialSecurity Gov – The first thing you need to realize is that not all trusts are viewed, or governed, in the same way. Trusts are divided into two separate groupings. All trusts that were in effect before Jan. 2000 and the second group is all trusts that were established after that date. This is because the Foster Care Independence Act became effective in 1999.SocialSecurity Gov
The exception to this grouping is made for disability trusts and pooled trusts. Social Security Rules place these trusts in the group of the pre January 2000. For all other trusts they will be considered to be a resource unless they are excluded due to the Medicaid Rules that can be found in Section 203 of the Social Security Gov Rules.
For the purpose of these rules a grantor will be known as a person that provides the funds for the trust. This term will apply regardless of the fact that the person is named as the grantor or the settler on the instrument.
In the Social Security Gov Rules an asset is defined as being any income the person receives, or a resource they have available to them. These rules apply to inheritances, and any other payments the person is supposed to receive.
There are rules called transfer rules that apply to the trust that say the instrument will no longer be considered as a resource if there is no way the person can receive any money from the distribution of the trust.
The Social Security Gov Rules makes the exception for trusts concerning someone who is under the age of 65, and who is legally defined as being disabled. In this instance a trust that was made by the parents or guardians of the disabled individual will not be considered. These trusts will however have to be left to the State Medicaid office upon the death of the individual.SocialSecurity Gov
There are strict rules and guidelines that must be followed when establishing a trust for someone that is disabled, and it is advised that you seek the guidance of an attorney when you are attempting to do this. A legal adviser that has current knowledge of the Social Security Gov Rules can help you to establish a trust with a nominal amount of money, that will allow the child to also deposit money into the trust through the years, establishing a retirement account of sorts for the disabled individual. The establishing of a trust for your disabled child is a good way to insure the child will have the necessary funds in the future to supply their needs.Social Security Gov