If a member of your family is disabled, a special needs trust attorney near me can help you set up a third party supplemental special needs trust so that they can receive an inheritance and still be able to maintain their eligibility for government benefits like Medicaid or disability payments. A New York special needs trust attorney near me can also help you with your estate planning so that any property left to your disabled family member will not disqualify them from those important governmental benefits.
A Special Needs Trust is a legal arrangement that can protect funds that can be used to pay for supplemental needs, including things like housing and utilities, travel expenses, educational or recreational experiences, and medical expenses not covered by Medicaid or other government benefits. If you're considering setting up one of these trusts, consulting a special needs trust attorney near me can provide tailored advice. These trusts can be set up by an individual with disabilities or by a person who is preparing their own estate plan and including a special needs trust as part of that estate planning. The first arrangements of this kind were called supplemental special needs trusts, and they were designed to supplement the assistance provided by Medicaid, Medicare, or other government benefits. Since then, the federal 21st Century Cures Act has enabled individuals to set up these trusts on their own without having to rely on a trustee like a parent or guardian.
The two types of special needs trusts are known as first-party supplemental special needs trusts and third party supplemental special needs trusts. First-party special needs trusts are those that a person with disabilities creates for themselves, usually after receiving a financial settlement from a personal injury case or as the result of winning a lawsuit. This type of trust is an irrevocable trust that is intended to separate those funds from other assets the person with disabilities owns, so they do not lose their eligibility for governmental benefits. To ensure correct setup and management, finding a special needs trust attorney near me is crucial.
Third-party special needs trusts are those that are established by people who are not the disabled individual themselves, often by parents or other family members who are preparing their own estate plans. A third party supplemental special needs trust is also an irrevocable trust that is meant to protect property or estate that has been given to the disabled person, either through a gift, through their own will or by other means, such as through life insurance or a beneficiary designation on another kind of property. For these complex arrangements, consulting with a special needs trust attorney near me can help ensure that the trust is properly established and managed.
If you are concerned that an inheritance you leave your disabled family member may disqualify them from important governmental benefits, you should contact an experienced special needs trust attorney near me soon.
When a family member has a disability that prevents them from living independently, it is often necessary to provide for their needs beyond what government assistance can offer. This is why it is important to speak with an experienced New York special needs trust attorney near me. A special needs trust attorney near me can assist you in establishing a New York special needs trust (SNT).
A SNT is designed to allow your loved one with disabilities to receive supplemental income while still maintaining government benefits such as Medicaid and Social Security disability payments. When your loved one is a beneficiary of a SNT, it allows them to enjoy additional resources from their own trustee that may be used for anything that is deemed essential for them to continue receiving their government benefits. This can include things like housing accommodations, medical equipment and supplies, recreational activities, and even funeral expenses.
Prior to the existence of SNTs, it was common for parents to disinherit their disabled children because if they did leave them an inheritance outright, they would lose their ability to collect government assistance. In order to protect the financial security of your disabled loved one, a SNT should be set up by an experienced New York special needs trust attorney near me to avoid this issue.
SNTs are often referred to as “special” or “supplemental” but the difference is important because a special needs trust must be set up with assets that belong to the disabled person (a first party trust) and a supplemental needs trust can be set up with third party funds such as from a personal injury settlement. Both types of trusts must include language stating that the assets are to supplement, not replace, the benefits from government programs and they should never be directly accessible by the beneficiary.
A SNT can be established by a parent or guardian and is often included in the client’s estate plan or will. It can also be established by a judge in a case where the disabled individual is already receiving government assistance and cannot manage their own affairs.
Generally speaking, it is possible to fund a SNT with cash or securities, including second-to-die life insurance policies. Retirement accounts can also be transferred to a SNT. However, transferring these assets is a complicated process and should be done with the help of an experienced New York special needs trust attorney near me.
If you are interested in a New York special needs trust administration, contact a special needs trust attorney near me today. They can assist you in drafting a tailored trust while coordinating your other estate planning efforts to enhance and enrich the lives of your loved ones with disabilities.
If you have a loved one with disabilities who needs care for the rest of their life, it is essential that you have a plan in place to ensure they are properly cared for after your death. A special needs trust (SNT) can help you provide your disabled loved one with the financial resources necessary to achieve a high quality of life while preserving their government benefits. A special needs trust attorney near me can assist with creating a proper plan through the use of a SNT, also known as a supplemental needs trust.
SNTs are specialized trusts that are designed to preserve a disabled beneficiary’s eligibility for means-based government benefits like Medicaid and Supplemental Security Income (SSI). Typically, these assets must be used to purchase goods and services that are not included in the basic benefit package or covered by any other funds your loved one may have, such as an inheritance, personal injury settlement or other sources of income. A special needs trust attorney near me can set up a first party SNT, which is funded with the individual’s own funds, or a third party SNT, which is a stand-alone trust that can be funded through an inheritance, personal injury settlement or even as a sub-trust within a living trust.
When creating a SNT, it is important to work with a knowledgeable New York especial needs trust attorney near me who understands the state requirements regarding how inheritance affects government benefits. The trustee who manages the fund must be a disinterested person or organization that is capable of providing periodic accountings to the court and complying with all laws regarding how SNTs are managed. The trustee must also ensure that the funds are used for purposes other than basic needs and living expenses, as those purchases would be considered income and could impact a disabled beneficiary’s ability to collect full government benefits.
As an alternative to a private or self-settled SNT, you can also create a pooled SNT that is administered by a non-profit entity. These trusts allow many families to pool their investments so that each disabled beneficiary can receive an adequate amount of money to meet his or her needs. These funds must also be used for purposes that are not directly related to a disabled beneficiary’s basic needs and living expenses, as any money left in the trust after your loved one’s death would be paid back to Medicaid.
In addition to a SNT, a special needs trust attorney near me can help with other components of your estate plan, such as guardianship and instructions in the event you are no longer able to care for your loved ones. A special needs trust attorney near me can also provide assistance with a letter of intent, which provides vital information for a future caregiver about your loved one’s unique interests and abilities.
Matus Law Group
222 Broadway FL 22, New York, NY 10038, United States
(929) 412-1808