Trusts

A. Special needs trusts (SNTs)

An SNT is a trust established for the benefit of a person who is under age 65 and has a disability with that person’s assets. An SNT is not considered an asset for any person whose MA basis of eligibility is due to blindness or disability.

B. Pooled trusts

A pooled trust is a trust that is established for the sole benefit of a person of any age who has a disability and that contains a separate account for two or more people who have a disability for the purpose of investment and management of funds in the accounts. The property held within a pooled trust is not considered an asset by MA.

C. DHS monitoring and recovery from SNTs and pooled trusts

For an SNT or pooled trust with a beneficiary who is an MA applicant or MA member, state law requires the trustee to submit an annual trust accounting directly to the DHS Special Recovery Unit (SRU). See Minnesota Statutes, section 501C.1205, subdivision 4. If a client or a client’s authorized representative or trustee provides you with an annual trust accounting for an SNT or pooled trust, forward the information to SRU.

In addition to monitoring trust accountings, DHS recovers up to the amount MA paid for the SNT or pooled trust beneficiary, because the law requires such trusts to designate DHS as a beneficiary to recover on remaining funds once the trust beneficiary dies.