MSNT can help determine which master trust is appropriate for your situation, whether a first- or third-party trust. The trust agreement documents will be provided by MSNT upon request for you to complete and submit for review. Sub-accounts with MSNT are established under the Midwest Special Needs Trust master trust. There is a different master trust for first- and third-party trusts.
Third Party Trusts
Third-party trusts are funded with the assets of someone other than the individual with a disability or their spouse. At termination, the Medicaid program cannot place a lien on the remainder balance. Final distributions will be issued in accordance with the terms and conditions of the trust agreement.
First Party Trusts
First-party trust sub-accounts are funded with assets of the individual with a disability. The individual with a disability will be referred to as the life beneficiary. Assets can include personal injury settlements, life insurance payouts, overpayments from Social Security and conserved funds. At termination, the Medicaid program can place a lien on the remainder balance in the sub-account. The Medicaid program must be paid first before any final distributions are issued in accordance with the terms and conditions of the trust agreement.