Individuals receiving government aid may often wonder what their obligations are for receiving this type of aid and how their personal finances configure into their specific situations. Those with special needs receiving government aid, particularly on the federal level, often set up an Arizona special needs trust, which is a specialty financial account that can be used to funnel in funds for various purposes. When you have this type of account, you no longer have to worry about the eligibility of funding from Medicaid and other federal and state funding sources, or whether or not you have to pay them back.
In fact, the only time you generally have to pay back funds used from these sources is if there are finding of fraud in terms of your income levels and your eligibility to receive the monies from these government resources. If you funnel your financial resources into an Arizona special needs trust account, you won’t have to worry about fraudulently receiving resources, as you are still entitled to them because of the stipulations of the trust. In fact, this is the reason that most people set up a trust in the first place. So that their assets are protected and their remain eligible to remain on Medicaid and as a recipient of SSI and other government funding intended to help with the day to day cost of living.
With this in mind, it is important that you administer your Arizona special needs trust account properly. There are stipulations on who can access the monies from this account and on what these monies may be spent. In most instances, the administrator of the account cannot be the beneficiary and the administrator may divert funds to be spent on certain expenses. These rules are in place to ensure that the individual receiving the federal aid remains eligible for that aid and can continue to receive benefits despite the presence of additional monies being provided to that person. In other words, an Arizona special needs trust account provides protection to ensure that the special needs individual will never have to pay back funds given through Medicaid and other government programs.