Do you need help planning for the care of a disabled loved one now or after you die? In Westchester County, a third-party special needs trust is one way to accomplish this goal. This type of trust sets aside money for disabled individuals that can be used for their care and comfort without disqualifying them from means-tested government benefits like Medicaid and Supplemental Security Income (SSI).
Amoruso & Amoruso LLP is a recognized leader in disability and trust planning in New York. We can explain how third-party special needs trusts in Westchester County can serve as an effective solution for families seeking ways to provide extra funds for a person with special needs without preventing them from receiving crucial government support. Contact our law firm today to learn more from an experienced attorney.
What Is a Third-Party Special Needs Trust?
A Third-Party Special Needs Trust (SNT) is established for the benefit of a disabled person who is currently receiving or expected to require government benefits in the future. Funding for a third-party special needs trust comes from an outside party, usually a parent, grandparent, legal guardian, or a court. The money can only be used on behalf of the disabled beneficiary, but because the beneficiary doesn’t control the trust, its assets don’t count towards the resource limits set by government agencies. A third-party SNT covers supplemental costs not included in public benefits, like education, personal care items, transportation, recreational activities, and more.
How Does a Third-Party Special Needs Trust Differ From Other Trusts for Disabled New Yorkers?
New York law provides for other various special needs trusts in addition to the third-party SNT:
- First-party SNT – Unlike a third-party special needs trust, a person with a disability funds a first-party SNT with their own money, such as an inheritance or personal injury settlement, and the beneficiary must be under age 65 when the trust is created. Also, the first-party SNT has a payback requirement, which reimburses Medicaid upon the beneficiary’s death. Third-party and pooled special needs trusts do not have to be repaid.
- Pooled special needs trust – Pooled trusts in New York are managed by nonprofit organizations and combine the assets of multiple beneficiaries. A pooled trust is an option for anyone with a disability and has no age restrictions.
What Are the Advantages of a Third-Party Special Needs Trust?
Third-party special needs trust benefits include the following:
- Retaining access to government benefits like Medicaid and SSI
- Enhancing the quality of life for the person by providing supplemental income
- No beneficiary age limit for third-party SNTs
- No payback requirement after death, so any remaining assets can be distributed according to the terms of the trust
Wondering if a Third-Party SNT is Right for You? Contact Our Westchester County Special Needs Trust Attorneys Now
At Amoruso & Amoruso LLP, our motto is Empowering You to Care for the Ones You Love™️. That’s precisely what we’ll do if you select us to prepare a third-party special needs trust for you or a loved one. We have almost 60 years of combined experience in special needs planning in Westchester County. Additionally, Attorney Michael J. Amoruso has been an integral part of nationwide advocacy efforts to improve laws governing special needs trusts. Call or contact us today to schedule an initial consultation.
