A special needs trust provides a way for a person with a disability to receive financial support while remaining eligible for needs-based government benefits like Medicaid or Supplemental Security Income (SSI). We work with families to provide relevant trusts to protect assets, and explain how a special needs trust preserves SSI and Medicaid eligibility, as well as advising trustees on administration and some potential problems that may arise.
How does a special needs trust preserve SSI and Medicaid eligibility?
In Oregon, a person who receives SSI and/or Medicaid is only allowed to have resources up to $2,000. If the person’s resources go over $2000, the person generally loses SSI and Medicaid benefits.
If a person with SSI and/or Medicaid has resources under $2,000, but receives a large inheritance or legal settlement, the person may lose his or her benefits. When money or other assets are placed in a special needs trust, however, the beneficiary can keep the assets without losing the government benefits.