Separate trust accounts can be established by the disabled beneficiary, a parent, a grandparent, a legal guardian, a conservator, or a court.

There is no maximum limit on the amount of money that can be placed in a Visible National Trust separate trust account.

Visible National Trust does not retain any funds after a trust account of any type is closed. Once all obligations are met, any remaining assets can be passed on to the remainder beneficiaries.

When funds are placed into the separate trust account by the disabled beneficiary, yes. In this case—also called a first-party trust—each state in which the disabled beneficiary received Medicaid benefits will be reimbursed for the benefits it provided. After that reimbursement is complete, any remaining funds in the trust can be distributed to the remainder beneficiaries.

Unlike wealth transfer trusts, special needs trusts are not structured primarily to save money on taxes. They are set up to hold funds for the care of a person with a disability, and contributions are not tax-deductible. However, donations to the trust by a third party may move funds from the donors’ assets into the disabled beneficiary’s trust and out of the donors’ estates. Taxes are typically paid by the special needs trust based on its retained earnings.

Yes, as long as the beneficiary meets the Social Security Administration (SSA) eligibility guidelines for special needs trusts. Beneficiaries must be unable to engage in “substantial gainful activity” permanently or for an extended period because of a physical or mental impairment. Current disability benefit receipt is not required. Trusts can be established with Visible National Trust for beneficiaries of any age. Medicaid may assess transfer penalties on first-party trusts for beneficiaries who are age 65 or older.

Outstanding bills and taxes will be paid before the account is closed. First-party trusts are required to reimburse Medicaid in all states where the beneficiary received services. Any funds remaining in the account will then be distributed to the remainder beneficiaries.

There may be state-specific paperwork required to document your new address. Let us know about any address changes as they occur so that the account can be updated appropriately.

Yes! Other family members may contribute to the special needs trust account after it is established.

No. This type of trust is designed to help disabled beneficiaries and their families by ensuring that the funds are available specifically for the beneficiary’s needs. As a result, these trusts are irrevocable, meaning the funds cannot be taken out of the trust and used for other purposes.

Many families establish revocable trusts to ensure that family assets are distributed according to their wishes; some of these trust documents may include a special needs trust for a disabled loved one. To designate Visible National Trust as trustee of the special needs trust, you will need to insert specific language into the revocable trust document. For guidance on the exact wording, request more information or speak with one of our experts.