More Forward Thinking: The Special Needs Trust
Murphy Law Firm, Inc. — Tempe, Arizona
In recent years, providing disabled or elderly people with funds to pay for their care without causing them to lose eligibility for AHCCCS and other governmental benefits has become an easier thing to do, thanks in large part to the advent of the special needs trust.
That said — economic indicators are not good right now and many states are experiencing significant budget deficits. As a result, cutbacks in human services programs like Supplemental Security Income (SSI) and Arizona's version of Medicaid, AHCCCS, are likely to occur. What that means is that government agencies such as AHCCCS may very soon be looking to deny eligibility or limit benefits in every situation they possibly can.
In other words, a special needs trust needs to be established and drafted properly. For an experienced estate planning lawyer who can help you do that — contact the Phoenix area law offices of Murphy Law Firm.
Unlike most firms, estate planning is not just one small part of what we do. It's all we do.
At Murphy Law Firm, our experience in establishing special needs trusts for severely injured, disabled or incapacitated people is something that our clients, and other attorneys in the Phoenix area, have come to depend on. Attorney Thomas Murphy has been practicing law for more than 25 years and has authored significant, published articles on the topic of the special needs trust. As a result, he has come to understand the subtleties of both the law on special needs trusts and of the government agencies that provide health benefits and other services.
Commonly known as D4A trusts, there are a few other facts about the special needs trust that you may want to know:
- The trust must be irrevocable, and the disabled person cannot demand access to the trust funds.
- The trust should not distribute cash to the disabled person — only “in-kind” distributions should be made. Otherwise, a disqualification period will be imposed.
- The trust must contain a payback provision whereby, upon the death of the disabled person or termination of the trust, the state gets paid for the services rendered to the disabled person.
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Serving Maricopa County and Pinal County Since 1992
To learn more — call our Tempe, Arizona, law offices at 866.249.7173 or contact us online and schedule an initial consultation.
