If you currently provide care for a child or loved one with special needs (such as mental or physical disabilities), you know what it’s like to worry about what may happen to him or her when you are no longer able to serve as the caretaker. You’ve devoted so much time to making sure that your loved one with a disability can thrive.
No one likes to imagine what might happen when they are gone, but fortunately, there are options to ensure that the quality of life your loved one enjoys will be maintained for their lifetime. Special needs planning is a useful method that can allow you to plan for your loved one’s future.
At New York Legacy Lawyers, our team of skilled New York special needs planning attorneys can help you set up a Special Needs Trust so that your loved one can retain government benefit eligibility, while at the same time providing assets that will meet the supplemental needs of the person with a disability (that go beyond food, shelter, and clothing, medical and long term support and Medicaid services).
Contact us today at (718) 713-8080 for experienced assistance.
While you can certainly bequeath money and assets to those with special needs, such an action may prevent them from qualifying for essential benefits under the Supplemental Security Income (SSI) and Medicaid programs. However, public monetary benefits provide only for the bare necessities such as food, housing and clothing. As you can imagine, these limited benefits will not provide your loved ones with the resources that would allow them to enjoy a richer quality of life. Fortunately, the government has established rules allowing assets to be held in trust, called a Special Needs or Supplemental Needs Trust for the benefit of a recipient of SSI and Medicaid, as long as certain requirements are met.
In fact, the Special Needs Trust is designed specifically to supplement public benefits rather than replacing them. Funds from the trust cannot be distributed directly to the disabled beneficiary. Instead, it must be disbursed to third parties who provide goods and services for use and enjoyment by the disabled beneficiary.
Generally, a Special Needs Trust should be established no later than the beneficiary’s 65th birthday. If you have a disabled or chronically ill beneficiary, you may want to consider establishing the Special Needs Trust at an early age. One benefit of having the Trust in place is that if the disabled beneficiary becomes the recipient of funds such as gifts, bequests or a settlement from a lawsuit they can immediately be transferred to the Special Needs Trust without affecting that individual’s eligibility for government benefits.
The Special Needs Trust can be used for a variety of life-enhancing expenditures without compromising your loved one’s eligibility such as:
If you have a loved one with a disability that you hope to provide for after your passing, establishing a Special Needs Trust is a critical way that you can ensure they will continue to have the quality of life they deserve. Generally, Special Needs Trusts are either stand-alone trusts funded with a separate asset like a life insurance policy or can be structured as a sub-trust in your existing living trust.
While Special Needs Trusts are typically established by parents for their disabled children, any third party can establish a Special Needs Trust for the benefit of a disabled beneficiary. It is important to seek the assistance of competent counsel when creating a Special Needs Trust because a poorly drafted Trust can easily be subject to “invasion” by the government agencies that provide benefits. Our law firm has the experience to establish effective Special Needs Trusts for anyone who wishes to provide for a disabled beneficiary.
Yes, you should still establish a Special Needs Trust to protect your disabled beneficiaries from potential creditors. For example, if your disabled beneficiaries are ever sued in a personal injury action, the assets in the trust would not be available to the plaintiffs. Furthermore, because the funds in the Special Needs Trust are not countable as available assets for purposes of determining government benefit eligibility, more of your money can be used for those supplemental expenditures that will allow your disabled beneficiary to enjoy a higher quality of life. Otherwise, much of your assets will be used to pay for private care benefits that are extremely expensive and can drain even significant sums of money over time.
Planning for the future when caring for a loved one with special needs involves thoughtful consideration and precise legal guidance. Special needs planning, particularly through trusts, is designed to provide financial security and a better quality of life for individuals with disabilities without jeopardizing their eligibility for essential government benefits. Special Needs Trusts are structured to supplement government assistance by covering additional needs that go beyond basic essentials. These trusts manage assets in a way that benefits the individual directly by funding services and goods through third parties.
At New York Legacy Lawyers, we have a dedicated team of attorneys with significant experience in special needs planning. Our attorneys assist families in making well-informed decisions that align with the long-term well-being and interests of beneficiaries with special needs. We focus on providing clear, straightforward legal advice and representing your family’s interests with precision and integrity.
If you are considering a Special Needs Trust or seeking guidance on planning for a family member with special needs, a compassionate attorney from New York Legacy Lawyers can provide the support and clarity you need.
Contact us today at (718) 713-8080 to discuss how we can help secure a stable and fulfilling future for your loved one.
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