In Arizona, Special Needs Trusts can be a powerful tool to protect your loved ones with disabilities and ensure their eligibility for the valuable Federal Medicaid programs. This article will explain how Special Needs Trusts are set up and managed, as well as the benefits they provide. You can learn more about the genuine benefits of special needs trust in Arizona from the link https://elderlawofaz.com/special-needs-planning/.
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Certain disabilities may qualify for federal benefits, including financial support and reimbursement for medical expenses. Medicaid is a program set up by the US government to help low-income individuals. It is not to be confused with Medicare, which is federal health insurance for the elderly. Individuals must be below certain income and resource thresholds to be eligible for various Medicaid programs.
Medicaid eligibility can be difficult for the disabled when their parents or relatives leave an inheritance. The assets inherited by the child may prevent them from continuing to receive federal aid. These assets can be transferred to a trust for the child with disabilities, which preserves their eligibility for federal benefits. To ensure eligibility criteria are met certain restrictions and terms must be added to the trust.
In Arizona, these trusts permit assets to be restricted for the specific needs of disabled children. The trust assets will be used to supplement government benefits, not replace them. Most trust assets cannot be used to provide shelter or food for the disabled. This is the most common restriction on special needs trusts. This is so that the federal government can continue to cover these primary expenses.