Testamentary Special Needs Trust

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 Spouse A dies with a Testamentary Special Needs Trust in Spouse A's Will for

      the benefit or Spouse B. Spouse B is or becomes incapacitated. Spouse A's

      testamentary special needs trust helps Spouse B qualify for Medicaid

 

 

 

               Spouse A                                                             Spouse B

 

           SPOUSE A DIES

 

owns one-half of the couple's assets                        owns one-half of the couple's assets

 

                    |

                    |  Probate of

                    |  Spouse A's Will

                    |

                    v 

Testamentary Special Needs Trust        created in Spouse A's Will funded        with one-half of the couple's assets          (These assets will not disqualify Spouse B          for Medicaid)

        Spouse B continues to own his one-half of

        the couple's assets.  Since Spouse B is now

        single, Medicaid rules for a single person apply

        (A single person on Medicaid can only have $2,000 in savings, 

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