Glossary

d(4)(A) Trust
A (d)4A Trust is a self settled special needs trust. It is funded with assets of the beneficiary, typically a tort victim. It is administered for the benefit of the beneficiary. The income and assets of the trust must be used for the beneficiaries special needs. Assets remaining in the trust at the death of the beneficiary must be used to payback any state Medicaid agency for Medicaid benefits paid on behalf of the Medicaid beneficiary. A d(4)(A) may be created for a beneficiary under the age of 65 by his parent, grandparent, legal guardian, or a court. A transfer of assets to a d(4)(A) trust does not give rise to a period of ineligibility for Medicaid or SSI benefits. Any assets remaining in the d(4)(A) trust at the disabled person's death must be used to reimburse the state for Medicaid benefits provided to the disabled person during his lifetime before distributions to remainder beneficiaries.

d(4)(C) Trust
A d(4)(C) or pooled trust is created by a nonprofit organization with separate accounts established solely for the benefit of individuals who are disabled by the parent, grandparent, legal guardian of the disabled person, by the disabled person or by a court. A transfer of assets of a person under the age of 65 to a d(4)(C) trust does not give rise to a period of ineligibility for Medicaid or SSI benefits. Any assets remaining in the d(4)(C) trust at the disabled person's death must be used to reimburse the state for Medicaid benefits provided to the disabled person during his lifetime before distributions to remainder beneficiaries or retained by the trust to assist other disabled persons.

Beneficiary
The beneficiary is the person who benefits from the trust. In the case of a special needs trust for tort victims, the beneficiary is the tort victim.

Grantor
A grantor is the person who establishes the trust and transfers assets to create the trust. In a special needs trust for a tort victim, the grantor must be the parent, grandparent, guardian of the disabled person, or the court.

In kind Support and Maintenance
In kind Support and Maintenance (ISM) is food, clothing and shelter furnished by the trust. It affects the SSI payment.

Medicaid
Medicaid is a medical assistance program that pays for medical benefits. It is a means tested program with income and asset limits for Medicaid eligibility purposes. Special needs are those needs of the beneficiary of the trust over and above food, clothing and shelter. Examples of special needs are non refundable airline tickets, stereo system, television, medical insurance, telephone bills, newspaper subscriptions, furniture, services of a care manager, vacations, travel expenses of relatives, movies, tax payments, medical treatment for which public funds are unavailable, the difference between private and semi private room rates in an institution, handicap van, school tuition, books and supplies, and health and life insurance premiums.

Supplemental Security Income (SSI)
SSI is an income maintenance program funded by the federal government and administered by the Social Security Administration. Some states have a small supplement to the SSI benefit. SSI is a means-tested program which imposes limits on the income and assets of an SSI recipient for eligibility purposes.

Trust Protector
A trust protector is a person designated by the grantor of the trust to protect the interest of the beneficiary. The trust protector oversees the trustee and can be given the power to remove and replace the trustee if the administration of the trust is not satisfactory.

Trust
A trust is a legal document under which assets are held and administered for the benefit of a beneficiary where the document spells out the terms and conditions of distribution and the terms by which the trust is to be administered.

Trustee
A trustee is the person who administers the trust in accordance with its terms. The selection of the right person or entity to serve as the trustee is critical. The trustee is responsible for investing the funds, accounting for income and the payment of expenses, and for making distributions in accordance with the terms of the trust document. If the trustee mismanages a Supplemental Needs Trust, the beneficiary's public benefits may be reduced or terminated.