Special Needs Glossary

Attorney-In-Fact: A person appointed under a Durable Power of Attorney who has the responsibility to make financial and other personal decisions on your behalf.

Conservatorship – A proceeding whereby the court appoints someone to manage the financial affairs of a person to be protected.  Under the recent changes to the Massachusetts Probate Code, a conservator only handles a person’s funds – a guardian must be appointed to control someone’s personal affairs.

First-Party Special Needs Trust – Sometimes called a “(d)(4)(A) Trust”, a first-party special needs trust is funded with a person with special needs’ own assets.  A first-party special needs trust must be created by a parent, grandparent or court.

Guardianship – A proceeding whereby the court appoints someone to manage the personal affairs of an incapacitated person.  Under the recent changes to the Massachusetts Probate Code, a guardian is only responsible for the “person”, not the person’s finances – a conservator would be appointed to manage those funds.

Health Care Agent or Proxy:  A person appointed under a Health Care Proxy who has the responsibility to make health related decisions in the event of your incapacity.

Medicaid – The state and federal health insurance partnership that provides medical care for people with low-incomes, people with disabilities, and some seniors.  Medicaid (called MassHealth in Massachusetts) is the government program that provides people with special needs with both community and long-term care benefits if they meet income and asset requirements.  SSI recipients automatically qualify for Medicaid in Massachusetts. 

Pooled Trust – A special needs trust, created by a non-profit organization, that holds accounts for multiple beneficiaries at once, allowing the trust to pool the resources and obtain a better return on investment.

SSDI (Social Security Disability Insurance) – A federal program that provides disability benefits to workers who become “disabled” or for “disabled” children of retirees or people with disabilities.  This program is usually available regardless of a person’s income or assets so long as he or she is unable to work and has worked for enough quarters to qualify for benefits.  SSDI recipients become entitled to Medicare two years after becoming entitled to SSDI. 

SSI (Supplemental Security Income) – A federal program for people with special needs who have limited resources and income.  While SSI typically does not provide a large cash award, it does provide access to Medicaid (MassHealth), which can be much more worthwhile for a person with special needs.  Unlike SSDI, SSI recipients (and the people who live with them) must meet very stringent income and asset tests. 

Third-Party Special Needs Trust – A trust established by a relative or friend for the benefit of a person with special needs .  The third-party special needs trust must be funded with assets that don’t originally belong to the beneficiary.