Chuhak Chats & Tecson Tips: Mallory Moreno speaks on Special Needs Trusts

Mallory Moreno, certified elder law attorney with Chuhak & Tecson, P.C. offers this in recognition of National Elder Law Awareness Month. We wanted to share a quick Tecson Tip about special needs trusts! Remember, a 1st party special needs trust is funded with the beneficiary’s own assets, often from an inheritance or legal settlement, and must include a Medicaid payback provision upon the beneficiary’s death. In contrast, a 3rd party special needs trust is funded with assets belonging to someone other than the beneficiary, such as a parent or grandparent, and does not require a Medicaid payback. Both types of trusts are designed to preserve the beneficiary’s eligibility for means-tested government benefits like SSI and Medicaid. Not all trusts are created equal, so if you have questions on special needs trusts or planning for a loved one with disabilities, consulting an elder law attorney is key!