Supplemental Needs Trusts for Disabled Beneficiaries - Module 5 of 6


Question 1

A supplemental needs trust can be created by which of the following people/entities?

Question 2

Jared has four children, one of whom, Tom, is disabled and receiving government assistance under Medicaid and SSI. He wants to give his assets away so as to become eligible for Medicaid. However, he wants to make sure that Tom benefits from his estate along with his other children. Which of the following is his best strategy?

Question 3

Which of the following is not an appropriate provision for a supplemental needs trust?

Question 4

15 year old Warren is struck by a car while riding his bicycle. After the accident, he requires care that can be provided by government assistance programs. Base don the accident, he brings a lawsuit against the driver’s insurance company and wins a $250,000 judgment. Which of the following is correct?

Question 5

Jill creates a supplemental needs trust for Jack’s benefit and funds it with $500,000. During Jack’s lifetime, state assistance programs pay $300,000 for his healthcare expenses. In 2012, Jack dies, while there is $400,000 in the trust assets. How much money can the state recover from this supplemental needs trust?

Question 6

Jack, a disabled person, duly creates a self-settled supplemental needs trust (with an appropriate pay-back provision) for his own benefit. He funds it with $200,000 of his own money. Later, Jill funds the same trust with another $200,000 gift. During Jack’s lifetime, state assistance programs pay $300,000 for his healthcare expenses. In 2020, Jack dies, while there is $400,000 in the trust assets. How much money can the state recover from this supplemental needs trust?

Question 7

Jack, a disabled person, duly creates a self-settled supplemental needs trust (with an appropriate pay-back provision) for his own benefit. The trust gives the trustee (Bob) the authority to spend assets for the supplemental and educational needs of Jack and/or his children. Is this a valid supplemental needs trust?

Question 8

Brenda establishes a supplemental needs trust for the benefit of her disabled daughter, Carla. The trust states that each year, any trust income not spent on Carla’s behalf shall be paid to Carla’s siblings, Scott and Todd. Is this a valid supplemental needs trust?

Question 9

Brenda establishes a supplemental needs trust for the benefit of her disabled daughter, Carla. The trust states that each year, any trust income not spent on Carla’s behalf shall be paid to Carla’s siblings, Scott and Todd. In 2020, Brenda gifts $500,000 to the trust and is left with no further assets. Is Brenda now eligible for Medicaid assistance?

Question 10

Walter earns $1,700 per month in social security income but is in need of healthcare assistance of a professional home health aid. He has no substantial assets. In this jurisdiction, the maximum income allowable under Medicaid eligibility rules is $700. Which of the following is correct?