Spending Special Needs Trust in Arizona

When you have a special needs trust fund, there are rules that determine what you can and cannot spend it on. It is important that you are aware of these rules and how you can spend it. If you are not fully aware of what a special needs trust is or what the rules are on how you can spend it, be sure to talk to us here are Family First and we would be happy to discuss it with you.

An Arizona special needs trust is used to help people who have too may resources, qualify for public benefit programs such as Arizona Long Term Care System. An Arizona special needs trust fund can be used on the following types of items:

Emergency legal expenses
Entertainment
Funeral or burial expenses
Furniture
Hobbies
Uncovered health care expenses
Vacations
Clothing items (In March, 2005, the old prohibition against providing clothing was dropped by the federal government. A trust drafted before the elimination of the clothing restriction may, however, still have language prohibiting expenditures for clothing; the trust document itself should be reviewed before a final determination).

Now that you have an idea of how a special needs trust can be used, let’s talk about ways that it cannot be used. Arizona special needs trust funds cannot be used to pay for items such as:

Housing (There are special rules affecting the use of special needs trusts (or any third-party payment) for shelter. Those rules are very difficult to navigate, and depend heavily on the beneficiary’s situation; secure competent legal advice before making any decision about the provision of shelter).
Medicaid covered medical treatments
Food

If Arizona special needs trust funds are used on a prohibited expense, the cost of the expenditure is treated as income, which could cause public benefit eligibility problems for the beneficiary.

You will need to have an Arizona special needs trust attorney help you draft the document if you deicide to establish a special needs trust. It is important that you are clear on how the Arizona special needs trust fund can be used before you leave their office. Contact us here at Family First and we would be happy to assist you in setting one up.

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If you are not sure as to what legal document you currently have contact one of our professionals to help you with your estate planning. They will make sure you have all of your grounds covered and have the right legal documents that best suite your wants and needs.