What is a protected trust?

A protected trust is a legal tool used to protect the assets of a person with a disability. In Maryland, a protected trust is created for a person with a disability so their assets are not taken away when they become eligible for government benefits like Supplemental Security Income (SSI) and Medicaid. Assets in a protected trust are not counted as the person’s income or resources for the purpose of determining eligibility for these government benefits. A protected trust is established by a third party, usually a family member or a court-appointed fiduciary, who can be a lawyer or another trusted individual. The trust is “protected” because it is managed by the third party but can only be used to benefit the person with a disability, often for educational costs, medical expenses, or basic necessities of life like housing and food. The trust funds can also be used to pay for disability-related services or to purchase items to adjust to the person’s disability. In Maryland, the state’s disability planning law protects the assets of a person with a disability by allowing them to maintain a protected trust without jeopardizing their eligibility for government benefits. This law provides a measure of financial security for people with disabilities, while also ensuring they have access to the services and resources they need.

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What is a protected trust?

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