Special Needs Trust Attorney NY
Disability Planning Attorney
Who Needs A Special Needs Trust?
If you have a disabled child or another relative or loved one who is disabled, you may consider establishing a Special Needs Trust for their benefit. A Special Needs Trust can help maintain disabled person’s standard of living when their parents are no longer able to care for them. This can be done without taking away any government aid, such as Medicaid and or SSI.
What is a Special Needs Trust?
The Special Needs Trusts, sometimes called Supplemental Needs Trusts, often used to preserve governmental benefits and protect assets of a disabled person. To verify eligibility Medicaid and other government bene t programs consider income and assets of each applicant. With SNT in place, a disabled person may use the trust funds and remain eligible for government assistance.
What Should I Take into Account When Setting Up a Special Needs Trust?
If you are planning to set up a Special Needs Trust, there are several pertinent factors that must be considered. It is important to remember how severe of a disability the individual has. It’s also important to consider where the individual will live and with whom they will live with if the parent is incapable of caring for their child.
What are the types of Special Needs Trusts?
- THIRD-PARTY SPECIAL NEEDS TRUST is established and funded for the bene t of a disabled person by someone else and funded with that person’s property. Generally, it is done by a close relative, such as spouse or parent of a disabled person, or guardian appointed for such person. The third-party trust usually gives Trustee total control over distribution of income and principal of the trust. If such condition is sustained, government does not count the trust funds as a resource of a disabled person. Also, the Third-Party SNT does not protect property that is received by the disabled person through inheritance, court settlement or any other source. Third-party SNT must be designed to enhance rather than replace the government benefits and therefore, the trust funds cannot be used for the bene t of a disabled person in a way that will make him or her ineligible for the benefits, such as cash gifts.
- SELF-SETTLED SPECIAL NEED TRUST is established and funded by the disabled person. The funds may come from the following sources: personal injury award, retirement plan, divorce, settlement, life insurance policy, or inheritance. If a disabled person owns a significant amount of property, such property can also be transferred into Self-Settled SNT. If the trust is settled properly and the funds in it are used in compliance with the strict government rules – the funds will not be considered as a disabled person resource and will allow such person to re- main eligible for Medicaid and other government aid. There are several types of Self-Settled SNTs, including Payback SNT, Pooled Income SNT and others – all are subject of specific federal and state rules.
How Do I Set Up A Special Needs Trust?
After deciding which Special Needs Trust, you must set up, you need to recognize, you must name the beneficiary of your trust. You must also appoint a trustworthy and reliable trustee who will be in charge of the financial management and ensure that your trust is upheld. Then designate a conservator or guardian who will care for your child and make important decision for them. After establishing who your beneficiary will be, you must fund your trust with assets in accordance with the rules of the trust that you decided to set up. Although it is possible to set up a Special Needs Trust on your own with the assistance of guidebook and online articles, it can often get complicated and disorganized. It is highly recommended that you consult with an estate planning attorney that can help explain the requirements and state-specific rules that will guide you through the process of setting up a trust.
How do I Fund A Special Needs Trust?
When funding a Special Needs Trust, it is important to remember that the trust, not your child directly, must be the heir or beneficiary of any funds you or anyone want to transfer to your child. Every state has different regulations on how money in special needs trust can or cannot be utilized. In most cases, however, it can be used for supplemental needs, which are needs not met by provided government benefits. Some of these benefits are housing costs, living expenses, legal fees, and certain medical procedures. There is no limit as to how much you can include in your special needs trust, and the amount would solely depend on how much care your child needs.
Some ways you can fund your trust include:
- Transferring a variety of assets including personal property and bank accounts.
- Using interferences
- Life insurance
- Lawsuit awards
There are also no legal fees such as setting up a trust and managing a trust, so some professionals suggest at least $100,000 to fund a trust.
Hire An Attorney:
If you are looking into setting up a Special Needs Trust, it is wise to select an attorney experienced in working with families of children with special needs, such as top New York Attorney Inna Fershteyn. The attorney’s role is essential – to properly set up and establish the trust, as well as the responsibilities and limitations of the trustee. The most important thing to take away is to not overlook the importance of a Special Needs Trust. Especially where a disabled child is involved, it is of greater importance that funds be available when needed.
It is never too early to start planning for your child’s future. Making the right moves today will ensure your child’s needs will always be met. If you require assistance with your Special Needs Planning, contact NY Supplemental Needs Trust Planning Attorney Inna Fershteyn today at 718-333-2394