Special Needs Trust Legislation

By: Jan P. Myskowski

On June 18, 2007, Governor Lynch signed House Bill 273, which addresses distributions from special needs trusts. Many readers may be familiar with the Appeal of Emily Huff, a case that went to the New Hampshire Supreme Court in 2006, and which is pending final resolution on remand to the New Hampshire Department of Health and Human Services. In that case, DHHS applied state rules in treating certain distributions from Emily’s special needs trust as countable income for Medicaid purposes. The distributions would not have counted under federal SSI rules applicable to special needs trusts. House Bill 273 mandates that the SSI rules be followed by DHHS in evaluating distributions from special needs trusts for Medicaid purposes. While the Huff case involved only self-settled special needs trusts, House Bill 273 requires that the SSI rules be applied to both self-settled and third-party special needs trusts. The law goes into effect on November 1, 2007.

Contact Jan P. Myskowski (603-629-4560) or any member of the Wiggin & Nourie Trusts and Estates Group if you have questions about these and other trust and estates questions.

The primary purpose of this newsletter is to provide current information on business and legal developments. However, it may be deemed advertising or a solicitation under applicable law or ethical guidelines.