State Promising Practices Related to Medicaid Exception Trusts

Medicaid exception trusts are generally exempt under federal law from the usual rules of counting trust income and resources. A Special Needs Trust (SNT) is a type of exception trust established by certain third parties for the benefit of a disabled individual under age 65. This report highlights examples of state laws, forms, eligibility rules, and operating practices states use to properly administer the statutory SNT provision and make recoveries.