Special Needs Trust - Mississippi

MISSISSIPPI THIRD-PARTY SPECIAL NEEDS TRUST

Before signing: This trust is for property owned by the settlor or other donors, never property owned by the beneficiary. A trust funded with the beneficiary's own assets needs a separate first-party analysis. Complete Schedule A with property actually transferred to the trustee. Review proposed payments against each benefit program's current rules; this instrument does not guarantee eligibility.

1. People and trust property

I, [SETTLOR FULL LEGAL NAME], of [ADDRESS], create this irrevocable trust for [BENEFICIARY FULL LEGAL NAME] (“Beneficiary”). I appoint [INITIAL TRUSTEE FULL LEGAL NAME], of [ADDRESS], as Trustee. The Trustee accepts the property described in Schedule A by signing below. I intend the Trustee to hold and administer that property and later accepted additions under this instrument.

This trust is named the [TRUST NAME]. Its date is [MONTH DAY, YEAR]. It is governed by Mississippi law.

The Trustee is a person other than the Beneficiary and has the duties stated here. The Beneficiary has no power to compel a distribution, direct investments, revoke the trust, or withdraw trust property.

2. Purpose and funding limit

The Trustee shall use the trust to provide goods and services that improve the Beneficiary's life while taking account of public needs-based assistance. Mississippi's special-needs trust protection in Miss. Code Ann. § 91-8-1109 applies only to the extent a provision of the Mississippi Uniform Trust Code would otherwise disqualify an eligible beneficiary; it is not a promise of benefit eligibility.

Only property from me or another person who owns the property may be added. The Trustee shall reject any transfer of the Beneficiary's own assets. No donor may demand the property back after a completed transfer.

3. Distributions during the Beneficiary's life

The Trustee may distribute income or principal for the Beneficiary's benefit in amounts and at times the Trustee judges appropriate. The Trustee should ordinarily pay a provider directly or purchase a good or service for the Beneficiary. The Trustee may consider benefits, available resources, quality of life, and tax effects before each decision. Examples include therapy, education, transportation, equipment, personal assistance, recreation, and suitable housing costs.

The Trustee shall consult qualified benefits counsel before a cash payment to the Beneficiary or a payment for food, shelter, or another item that may change SSI, Medicaid, housing, or other needs-based benefits. No example in this section requires a payment or assures that a payment will be disregarded by a benefit program.

Undistributed income remains in the trust. The Trustee may pay reasonable trust administration expenses from trust property.

4. Trustee administration

The Trustee shall administer the trust prudently, keep trust property separate, maintain records of receipts, expenses and distributions, and act for the trust's purposes. Miss. Code Ann. § 91-8-804. The Trustee may hold, invest, insure, lease, sell, and reinvest trust property; employ advisers; and exercise powers allowed by this instrument and Miss. Code Ann. § 91-8-815.

The Trustee shall give beneficiaries the notices and information required by Miss. Code Ann. § 91-8-813 and provide an accounting when required by law. A beneficiary's silence after receiving a report does not itself approve a transaction or release a claim.

The Trustee may receive [NO COMPENSATION / REASONABLE COMPENSATION AT RATE OR METHOD] and reimbursement of properly incurred trust expenses. The Trustee remains accountable for breach of duty under applicable law.

5. Successor trustees

If the initial Trustee cannot or will not serve, [FIRST SUCCESSOR TRUSTEE FULL NAME] shall serve after accepting in writing. If that person cannot or will not serve, [SECOND SUCCESSOR TRUSTEE FULL NAME] shall serve after accepting in writing. The outgoing Trustee shall deliver trust records and property to the acting successor.

6. End of trust and final remainder

This trust ends when the Beneficiary dies or when its property is exhausted. After the Beneficiary's death, the Trustee shall pay enforceable trust expenses and taxes, then distribute 100% of the remaining trust property to [PRIMARY REMAINDER RECIPIENT, FULL NAME]. If that recipient does not survive the Beneficiary or no longer exists, distribute 100% to [FIRST ALTERNATE RECIPIENT, FULL NAME]. If neither can take, distribute 100% to [FINAL ALTERNATE PERSON OR CHARITY, FULL LEGAL NAME].

This instrument contains no Medicaid reimbursement or payback term. Do not transfer beneficiary-owned assets into it.

7. Settlor and Trustee signatures

I sign this instrument intending to create and fund the trust described above. The Trustee signs to accept the initial property and duties.

Settlor signature: _______________________________

Printed name: [SETTLOR FULL LEGAL NAME]

Date: [MONTH DAY, YEAR]

Trustee signature: _______________________________

Printed name: [TRUSTEE FULL LEGAL NAME]

Date: [MONTH DAY, YEAR]

Notary acknowledgment

State of Mississippi, County of [COUNTY]

On [MONTH DAY, YEAR], [SETTLOR FULL LEGAL NAME] and [TRUSTEE FULL LEGAL NAME] appeared before me, proved identity to my satisfaction, and acknowledged signing this instrument.

Notary public signature: _______________________________

Printed name: [NOTARY FULL NAME]

Commission expiration: [DATE]

Notary seal: [SEAL]

Schedule A — property transferred now

Additional property: A later donor must use a completed transfer accepted by the Trustee. Merely listing property here does not transfer title.