State Codes and Statutes

Statutes > North-dakota > T59 > T59c08

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CHAPTER 59-08TRUSTS FOR INDIVIDUALS WITH DISABILITIES59-08-01. Definitions. As used in this chapter, unless the context otherwise requires:1.&quot;Individual with a disability&quot; means an individual who, before creation of a third-party<br>special needs trust or a self-settled special needs trust for that individual's benefit, is<br>considered to be an individual with a disability as defined in 42 U.S.C. 1382c(a)(3).2.&quot;Self-settled special needs trust&quot; means a trust created by an individual with a<br>disability after August 10, 1993, which qualifies under 42 U.S.C. 1396p(d)(4).3.&quot;Third-party special needs trust&quot; means a trust that does not make an individual with<br>a disability ineligible for publicly funded benefits while maintaining assets in that trust<br>and which is created for the benefit of an individual with a disability and funded by<br>someone other than the trust beneficiary, the beneficiary's spouse, a parent of a<br>minor beneficiary, or anyone obligated to pay any sum for damages or any other<br>purpose to or for the benefit of the trust beneficiary under the terms of a settlement<br>agreement or judgment.59-08-02. Third-party special needs trusts under state law.1.A third-party special needs trust must provide for the living expenses and other<br>needs of an individual with a disability when publicly funded benefits are not<br>sufficient to provide adequately for those needs. A third-party special needs trust<br>must limit distributions in a manner and for purposes that supplement or<br>complement publicly funded benefits for an individual with a disability. A third-party<br>special needs trust may not have the effect of replacing, reducing, or substituting for<br>publicly funded benefits otherwise available to a beneficiary with a disability or<br>rendering a beneficiary with a disability ineligible for publicly funded benefits.2.This section applies to any third-party special needs trust that complies with the<br>requirements of this chapter, regardless of the date on which the trust was created<br>or funded. Notwithstanding any other provision of the law, this chapter does not<br>disqualify any beneficiary of a third-party special needs trust from receiving publicly<br>funded benefits if the trust did not disqualify that individual under previous law.59-08-03.Self-settled special needs trusts.The district court may authorize thecreation and funding of self-settled special needs trusts.59-08-04.Interpretation or enforcement - Reformation - Unenforceable trustprovisions.1.This chapter does not require the submission of a third-party special needs trust or a<br>self-settled special needs trust to a court for interpretation or enforcement.2.A third-party special needs trust may not disqualify a recipient of publicly funded<br>benefits solely because a contingent beneficiary is named to receive the net balance<br>of the trust estate upon the death of a beneficiary with a disability, or upon other<br>termination of the trust.3.The trustee or the grantor of any trust intended to be a third-party special needs trust<br>or a self-settled special needs trust may seek court reformation of the trust to<br>accomplish the purpose of a third-party special needs trust or a self-settled special<br>needs trust.4.Except for self-settled special needs trusts and third-party special needs trusts, a<br>provision in a trust which provides for the suspension, termination, limitation, or<br>diversion of the principal, income, or beneficial interest of a beneficiary if thePage No. 1beneficiary applies for, is determined eligible for, or receives publicly funded benefits<br>is unenforceable as against the public policy of this state, without regard to the<br>irrevocability of the trust or the purpose for which the trust was created.59-08-05. Conflicts with other chapters. If any provision of this chapter conflicts withchapter 59-09, 59-10, 59-11, 59-12, 59-13, 59-14, 59-15, 59-16, 59-17, 59-18, or 59-19, the<br>provision of this chapter takes precedence.Page No. 2Document Outlinechapter 59-08 trusts for individuals with disabilities

State Codes and Statutes

Statutes > North-dakota > T59 > T59c08

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CHAPTER 59-08TRUSTS FOR INDIVIDUALS WITH DISABILITIES59-08-01. Definitions. As used in this chapter, unless the context otherwise requires:1.&quot;Individual with a disability&quot; means an individual who, before creation of a third-party<br>special needs trust or a self-settled special needs trust for that individual's benefit, is<br>considered to be an individual with a disability as defined in 42 U.S.C. 1382c(a)(3).2.&quot;Self-settled special needs trust&quot; means a trust created by an individual with a<br>disability after August 10, 1993, which qualifies under 42 U.S.C. 1396p(d)(4).3.&quot;Third-party special needs trust&quot; means a trust that does not make an individual with<br>a disability ineligible for publicly funded benefits while maintaining assets in that trust<br>and which is created for the benefit of an individual with a disability and funded by<br>someone other than the trust beneficiary, the beneficiary's spouse, a parent of a<br>minor beneficiary, or anyone obligated to pay any sum for damages or any other<br>purpose to or for the benefit of the trust beneficiary under the terms of a settlement<br>agreement or judgment.59-08-02. Third-party special needs trusts under state law.1.A third-party special needs trust must provide for the living expenses and other<br>needs of an individual with a disability when publicly funded benefits are not<br>sufficient to provide adequately for those needs. A third-party special needs trust<br>must limit distributions in a manner and for purposes that supplement or<br>complement publicly funded benefits for an individual with a disability. A third-party<br>special needs trust may not have the effect of replacing, reducing, or substituting for<br>publicly funded benefits otherwise available to a beneficiary with a disability or<br>rendering a beneficiary with a disability ineligible for publicly funded benefits.2.This section applies to any third-party special needs trust that complies with the<br>requirements of this chapter, regardless of the date on which the trust was created<br>or funded. Notwithstanding any other provision of the law, this chapter does not<br>disqualify any beneficiary of a third-party special needs trust from receiving publicly<br>funded benefits if the trust did not disqualify that individual under previous law.59-08-03.Self-settled special needs trusts.The district court may authorize thecreation and funding of self-settled special needs trusts.59-08-04.Interpretation or enforcement - Reformation - Unenforceable trustprovisions.1.This chapter does not require the submission of a third-party special needs trust or a<br>self-settled special needs trust to a court for interpretation or enforcement.2.A third-party special needs trust may not disqualify a recipient of publicly funded<br>benefits solely because a contingent beneficiary is named to receive the net balance<br>of the trust estate upon the death of a beneficiary with a disability, or upon other<br>termination of the trust.3.The trustee or the grantor of any trust intended to be a third-party special needs trust<br>or a self-settled special needs trust may seek court reformation of the trust to<br>accomplish the purpose of a third-party special needs trust or a self-settled special<br>needs trust.4.Except for self-settled special needs trusts and third-party special needs trusts, a<br>provision in a trust which provides for the suspension, termination, limitation, or<br>diversion of the principal, income, or beneficial interest of a beneficiary if thePage No. 1beneficiary applies for, is determined eligible for, or receives publicly funded benefits<br>is unenforceable as against the public policy of this state, without regard to the<br>irrevocability of the trust or the purpose for which the trust was created.59-08-05. Conflicts with other chapters. If any provision of this chapter conflicts withchapter 59-09, 59-10, 59-11, 59-12, 59-13, 59-14, 59-15, 59-16, 59-17, 59-18, or 59-19, the<br>provision of this chapter takes precedence.Page No. 2Document Outlinechapter 59-08 trusts for individuals with disabilities

State Codes and Statutes

State Codes and Statutes

Statutes > North-dakota > T59 > T59c08

Download pdf
Loading PDF...


CHAPTER 59-08TRUSTS FOR INDIVIDUALS WITH DISABILITIES59-08-01. Definitions. As used in this chapter, unless the context otherwise requires:1.&quot;Individual with a disability&quot; means an individual who, before creation of a third-party<br>special needs trust or a self-settled special needs trust for that individual's benefit, is<br>considered to be an individual with a disability as defined in 42 U.S.C. 1382c(a)(3).2.&quot;Self-settled special needs trust&quot; means a trust created by an individual with a<br>disability after August 10, 1993, which qualifies under 42 U.S.C. 1396p(d)(4).3.&quot;Third-party special needs trust&quot; means a trust that does not make an individual with<br>a disability ineligible for publicly funded benefits while maintaining assets in that trust<br>and which is created for the benefit of an individual with a disability and funded by<br>someone other than the trust beneficiary, the beneficiary's spouse, a parent of a<br>minor beneficiary, or anyone obligated to pay any sum for damages or any other<br>purpose to or for the benefit of the trust beneficiary under the terms of a settlement<br>agreement or judgment.59-08-02. Third-party special needs trusts under state law.1.A third-party special needs trust must provide for the living expenses and other<br>needs of an individual with a disability when publicly funded benefits are not<br>sufficient to provide adequately for those needs. A third-party special needs trust<br>must limit distributions in a manner and for purposes that supplement or<br>complement publicly funded benefits for an individual with a disability. A third-party<br>special needs trust may not have the effect of replacing, reducing, or substituting for<br>publicly funded benefits otherwise available to a beneficiary with a disability or<br>rendering a beneficiary with a disability ineligible for publicly funded benefits.2.This section applies to any third-party special needs trust that complies with the<br>requirements of this chapter, regardless of the date on which the trust was created<br>or funded. Notwithstanding any other provision of the law, this chapter does not<br>disqualify any beneficiary of a third-party special needs trust from receiving publicly<br>funded benefits if the trust did not disqualify that individual under previous law.59-08-03.Self-settled special needs trusts.The district court may authorize thecreation and funding of self-settled special needs trusts.59-08-04.Interpretation or enforcement - Reformation - Unenforceable trustprovisions.1.This chapter does not require the submission of a third-party special needs trust or a<br>self-settled special needs trust to a court for interpretation or enforcement.2.A third-party special needs trust may not disqualify a recipient of publicly funded<br>benefits solely because a contingent beneficiary is named to receive the net balance<br>of the trust estate upon the death of a beneficiary with a disability, or upon other<br>termination of the trust.3.The trustee or the grantor of any trust intended to be a third-party special needs trust<br>or a self-settled special needs trust may seek court reformation of the trust to<br>accomplish the purpose of a third-party special needs trust or a self-settled special<br>needs trust.4.Except for self-settled special needs trusts and third-party special needs trusts, a<br>provision in a trust which provides for the suspension, termination, limitation, or<br>diversion of the principal, income, or beneficial interest of a beneficiary if thePage No. 1beneficiary applies for, is determined eligible for, or receives publicly funded benefits<br>is unenforceable as against the public policy of this state, without regard to the<br>irrevocability of the trust or the purpose for which the trust was created.59-08-05. Conflicts with other chapters. If any provision of this chapter conflicts withchapter 59-09, 59-10, 59-11, 59-12, 59-13, 59-14, 59-15, 59-16, 59-17, 59-18, or 59-19, the<br>provision of this chapter takes precedence.Page No. 2Document Outlinechapter 59-08 trusts for individuals with disabilities