Special Needs Trust - Alaska

Alaska first-party special needs trust

Before signing: Complete each bracketed field, attach Schedule A, and place [DRAFTER NAME OR ORGANIZATION] in a repeating header or footer on every page of the final paginated document, including schedules. Check each printed or PDF page. Alaska benefits and trust counsel should review funding and the disability finding. Submit this instrument to the Alaska Medicaid department for approval before the eligibility determination. Approval of the Medicaid exception alone does not establish SSI resource exclusion.

1. Establishment and property

This irrevocable [TRUST NAME] is established on [DATE] in [CITY, ALASKA] for [BENEFICIARY FULL NAME], born [DATE OF BIRTH] (the Beneficiary). The Beneficiary is under 65 when this trust is first funded and is disabled within 42 U.S.C. § 1382c(a)(3). The most recent determination or redetermination of blindness under 7 AAC 40.140(a) or disability under 7 AAC 40.170(a) was made on [DATE] by [AGENCY / DECISION MAKER]. The Trustee shall retain the determination with the records.

[ESTABLISHER FULL NAME], who is the Beneficiary / Beneficiary's parent / Beneficiary's grandparent / Beneficiary's legal guardian / court acting by order [SELECT ONE; IDENTIFY ORDER IF APPLICABLE], establishes this trust for the Beneficiary under 42 U.S.C. § 1396p(d)(4)(A). A signer other than the Beneficiary transferring the Beneficiary's property acts under [IDENTIFY LAWFUL AUTHORITY OR ORDER]. The property in Schedule A is the Beneficiary's own income or resources, identified by source and title. The establishing signer conveys that property to the Trustee in the stated capacity. The Trustee acknowledges only property actually delivered.

The Trustee shall accept only the Beneficiary's income or resources as additions. Another person's assets, including that person's gifts or inheritance, shall be rejected or returned, never commingled. After the Beneficiary reaches 65, the Trustee shall reject new additions except continued income or resources from the same source, or its successor, from which the trust received income before age 65, as permitted by 7 AAC 100.612(b); counsel shall review any proposed post-65 deposit.

2. Sole benefit and distributions

This trust holds property solely for the Beneficiary's benefit during life and is intended to qualify under 42 U.S.C. § 1396p(d)(4)(A), AS 13.36.215(b)(8), and 7 AAC 100.612. It is irrevocable. Neither the Beneficiary nor the establishing signer may revoke it, demand principal or income, direct distributions or investments, serve as Trustee or co-Trustee, access or control the trust account, or appoint trust property for personal use. A remainder beneficiary has no lifetime benefit or distribution right.

The Trustee may apply income and principal for the Beneficiary's care, education, transportation, equipment, recreation, and support. The Trustee shall consider the effect of each payment on Medicaid, SSI, and other benefits and may pay a provider directly. The Trustee may choose a payment that reduces benefits when the Beneficiary's interests justify it. Cash to the Beneficiary and some vendor payments can count as income or support under benefit rules. The Trustee shall record the purpose and expected benefit effect of significant payments. A payment to another person must give the Beneficiary a direct and measurable benefit or satisfy the Beneficiary's own legal obligation; it may not be a disguised gift.

3. Trustee and administration

Initial Trustee: [NAME AND ADDRESS]. Co-Trustee, if any: [NAME AND ADDRESS OR NONE]. First successor: [NAME AND ADDRESS]. Second successor: [NAME AND ADDRESS]. A successor serves when the prior office is vacant and the successor accepts in writing. If none can serve, an interested person may petition the Alaska court with trust jurisdiction to appoint one. The Beneficiary shall never serve or manage the account.

The Trustee may resign by written notice to the Beneficiary, the Beneficiary's authorized representative if any, the department, and the registration court, effective no sooner than 30 days after notice. The Trustee shall notify those same recipients in writing at least 30 days before any change of Trustee or co-Trustee, including succession or appointment. The Trustee shall coordinate any court procedure needed for continuous administration. Removal and court remedies remain available under AS 13.36.076.

The Trustee shall administer the trust prudently under Alaska law, keep its property separate, maintain accounts, and give information and accounts under AS 13.36.080. Subject to the benefit and payback limits here, the Trustee may collect assets, invest, insure, contract, hire advisers, pay taxes and proper administration costs, and make distributions under AS 13.36.107 and .109. Compensation must be reasonable and recorded. The Trustee shall cooperate with department monitoring, disclose the account number and financial institution on request, account for deposits and payments, and pay any applicable Medicaid cost-of-care liability. Nothing here excuses a breach or caps the Trustee's personal liability to trust assets.

The principal place of administration is [CITY, ALASKA]. The Trustee shall register the trust in the Alaska court there under AS 13.36.005 and .010, give the department proof of registration, and give the notices required by AS 13.36.080. The Trustee shall submit the signed trust to the department for review and approval before the Medicaid eligibility decision.

If funding is no longer needed to maintain Medicaid eligibility, the Trustee shall give the notices required by 7 AAC 100.604(e) no later than the first day of the month before funding stops and preserve the corpus until lawful termination and reimbursement. Before resuming an unfunded approved trust, the Trustee shall notify the department by the 15th day of the preceding month under 7 AAC 100.604(f).

4. Termination and Medicaid reimbursement

This trust terminates only on the Beneficiary's death or court order, whichever occurs first. The Trustee shall identify every state that provided Medicaid to the Beneficiary and the medical assistance paid by each. Before reimbursement, the Trustee may pay outstanding legal and administrative fees associated with establishing and maintaining this trust and account as allowed by 7 AAC 100.608(a). No other post-death payment takes priority over state reimbursement unless governing law requires it.

On death, the Trustee shall pay all remaining amounts, up to the total medical assistance paid on the Beneficiary's behalf under each state's Medicaid plan, to the state or states that provided it. Payback is not limited to assistance after this trust's creation or to Alaska. If more than one state paid Medicaid, the Trustee shall allocate the available reimbursement among them in proportion to each state's share of total Medicaid benefits paid by all such states, subject to each state's claim and 7 AAC 100.608(b). Advance reimbursements shall be credited against the obligation.

If a court terminates the trust before death, the Trustee shall either reimburse the states in that manner or place the corpus in another department-approved recognized Medicaid trust under 7 AAC 100.608(c). The terminated trust shall not be used again. After full required reimbursement and lawful expenses, residue shall pass to [FULL NAME, ADDRESS, AND SHARE OF EACH REMAINDER BENEFICIARY; TOTAL 100%]; if none survives, to [CONTINGENT REMAINDER BENEFICIARY].

5. Governing law and execution

Alaska law governs administration. Proceedings concerning internal affairs belong in the Alaska court with jurisdiction under AS 13.36.035. Any amendment or court instruction must preserve irrevocability, sole benefit, limits on beneficiary control, and reimbursement. The Trustee shall obtain counsel and required department or court approval before implementing a change. A purported amendment defeating those requirements is ineffective.

The undersigned establish and accept this trust on the date above, in the capacities shown.

Establisher: __________________________ Date: __________ Capacity: __________________________

Trustee: ______________________________ Date: __________

Co-Trustee, if named: ___________________ Date: __________

Drafted by: [DRAFTER NAME OR ORGANIZATION] Contact: [ADDRESS / PHONE]

Schedule A — Beneficiary's initial property

Trustee receipt: I acknowledge only the assets marked delivered above. __________________________ Date: __________

Drafted by: [DRAFTER NAME OR ORGANIZATION]. Place this identification in the repeating header or footer of every final page, including this schedule.