Sadly, the beneficiary of a Special Needs Trust will be dying soon will necessitate winding up the trust. Payments will be owed to creditors and there will be administrative expenses of winding up the trust, including legal and accounting fees. These expenses are deductible in determining the amount payable to the state of NJ as reimbursement of the nursing home expenses that the state Medicaid department has paid. In this video, Fredrick P. Niemann, Esq. discusses the priority of payments from a Special Needs Trust upon the death of a beneficiary.