You know the Uniform Gift to Minors Act (MGLA Ch. 201A) was created in order that a gift to a minor can be titled in the minor’s name by using a custodian without the need of a trust. You know how to request the court to approve a settlement for a minor by using that statute. When the minor reaches age 21 the settlement is turned over to the client who is no longer a minor. And that’s the end of it.
Or so you think. If, however, a minor is on MassHealth (Medicaid) or Supplemental Security Income (SSI), then compliance with the statute alone is not enough. As a matter of fact, compliance only with this statute may be malpractice. The cure is the same supplemental needs trust we do for adult disabled people who are on MassHealth-42 U.S.C. § 1396 p(d)(4)(A); or on SSI-42 U.S.C. § 1382 (b).
The good news is since your tort recipients are minors, most of them will have a living parent or grandparent and therefore we don’t need court approval to establish the trust.
What we do need however, in conjunction with the Settlement Order you obtain under the Uniform Gift To Minors Act, is for the Order to contain this additional language:
IF THEY HAVE A LIVING PARENT OR GRANDPARENT OR LEGAL GUARDIAN:
A) “Establish an account for the benefit of Name of Beneficiary Trust which is a qualified supplemental needs trust pursuant to 42 U.S.C. § 1396 p(d)(4)(A); 42 U.S.C. § 1382 (b), and the Code of Massachusetts Regulations at 130 CMR 520.023(D)(1); and further,
B. “Subject to a MassHealth (or its equivalent in any other state) right of repayment as provided by both Federal and Massachusetts law; and thereafter designate XXXXX as the Remainder persons of the account.” (Please note for very young minors, the beneficiary may be simply “their estate.”)
OR IF A POOLED TRUST:
A) “Establish an account for the benefit of Name of Beneficiary in the XXX Pooled Trust which both the Federal Government and MassHealth has approved as a qualified Pooled Special Needs Trust 42 U.S.C. § 1396p(d)(4)(C); 42 U.S.C. § 1382 (b)”; and 130 C.M.R.520.023(D)(1) ; and further,>
B) “Subject to a MassHealth (or its equivalent in any other state) right of repayment as provided by both Federal and Massachusetts law; and thereafter designate XXXXX as the Remainder Persons of the account.”
Please note for very young minors, the beneficiary may be simply “their estate.” If you have any questions regarding trusts for minors or supplemental needs trust in general, please call me. I am here to help.
My firm can also assist you in other ways. I can place a person on long term care (Nursing home) MassHealth. I have been doing this since 1988.
