A person under 65 years old may create a first-party supplemental needs trust for income in excess of the monthly amount allowed by Medicaid. A person is entitled to fund this trust until the age of 65 years old and will be entitled to the resources in the trust until he or she dies. Furthermore, a first-party supplemental needs trust allows a person to designate a trustee to make payments on his or her behalf. It is worth noting that a trustee may be limited to the powers enumerated in the trust’s terms and conditions. Therefore, a person may choose to expand a trustee’s power or limit his or her power by setting forth specific guidelines.
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An irrevocable trust can be created to preserve assets in the event that a person requires long-term care through the Medicaid program, which is a primary payer of skilled nursing facility costs. In order to be eligible for the Medicaid program, an applicant must meet specific income and asset requirements. In most instances, individuals will transfer assets into a trust to ensure Medicaid eligibility. Normally, the transfer of assets is completed prior to an individual requiring long-term care assistance, because the assets must remain in the trust for five years in order for the Grantor to not be penalized or be caused ineligibility for Medicaid. 
A Special Needs Trust (SNT) preserves the assets of a person with special needs to support his or her lifestyle. An SNT allows the person to receive supplemental resources without jeopardizing his or her public benefits. Public benefits include Supplemental Security Income (SSI) and Medicaid benefits. An SNT is usually created by a parent or loved one for a child with special needs. Oftentimes, parents may find it difficult to select a trustee for the SNT that he or she is funding. A trustee is responsible for overseeing administrative decisions, including any distributions. 
