Special Needs Trust Planning Flashcards
7 cards from real CEA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Special Needs Trust Planning flashcards as text
When a Special Needs Trust beneficiary receives in-kind support and maintenance (ISM), what is the most likely consequence?
Answer: Reduction in SSI benefit payments
In-kind support and maintenance such as food and shelter provided by the trust can reduce the beneficiary's SSI payments by up to one-third.
What is the term for the legal document that outlines the trustee's authority and provides guidance on how to administer an SNT for a specific beneficiary?
Answer: Letter of intent
A letter of intent is a non-binding document that provides the trustee with guidance about the beneficiary's needs, preferences, routines, and goals.
Which federal statute governs Supplemental Security Income (SSI) resource and income rules that directly affect SNT planning?
Answer: Title XVI of the Social Security Act
SSI is governed by Title XVI of the Social Security Act, which sets the income and resource limits relevant to SNT planning.
An SNT beneficiary who receives SSDI rather than SSI is primarily concerned with which public benefit when planning trust distributions?
Answer: Medicare coverage
SSDI recipients rely on Medicare rather than Medicaid, so trust planning must focus on protecting Medicare eligibility and coverage.
Which scenario would cause a Special Needs Trust to be invalidated or disqualify the beneficiary from Medicaid?
Answer: The trust makes direct cash payments to the beneficiary
Direct cash payments to the beneficiary are counted as income for SSI/Medicaid purposes, potentially causing disqualification from means-tested benefits.
What does ABLE stand for in the context of disability planning alongside Special Needs Trusts?
Answer: Achieving a Better Life Experience
ABLE stands for Achieving a Better Life Experience, referring to tax-advantaged savings accounts created by the ABLE Act for individuals with disabilities.
How does an ABLE account complement a Special Needs Trust in disability planning?
Answer: It provides tax-free growth for smaller, flexible disability expenses
ABLE accounts offer tax-free savings for qualified disability expenses and are particularly useful for day-to-day smaller costs, complementing the SNT's broader supplemental role.