Special Needs Trust Q&A: Obligation to Repay

Is There An Obligation To Repay Medicaid, Or Other State And Federal Funding Sources?

When you are dealing with special needs or have a loved one that is, there are numerous considerations to be had. From long-term care planning to financial options, it is imperative not to let any one need fall through the cracks. A special needs trust Arizona can help to address financial considerations when it comes to benefits received on behalf of a special needs beneficiary. Many of these individuals receive a disability stipend from the federal government to help cover monthly living expenses. Moreover, special needs people may also receive insurance cover through Medicaid to ease the burden of their healthcare expenses. This is the benefit of a trust, because these federal benefits come with certain financial stipulations that when broken, can cost a special needs person their access to benefits.

When you have a special needs trust Arizona, you aren’t liable for paying back benefits received for Medicaid or disability monies from the state or federal government. In fact, the only time that this issue comes up is when you – or your administrator – steps outside of the confines of the special needs trust Arizona to take care of your expenses. If monies earmarked on your behalf are funneled through the trust for your expenses, then this is not an issue because the rules of the trust explicitly state how money set aside for your interests should be handled in order to remain eligible for this funding. It is when a special needs individual utilizes monies outside of the special needs trust Arizona that things get sticky. If caught receiving large sums of money outside of the trust, a special needs person may be responsible for paying back the government for financial benefits like disability and Medicaid because the government may determine that these benefits are no longer necessary.

For this reason, it is important to understand the rules of a special needs trust Arizona and follow them implicitly. This ensures coverage through federal benefits as well as access to vital financial resources via the trust for everyday living or major expenses.

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