A first-party special needs trust is a valuable estate planning tool that disabled individuals can use to protect their assets and qualify for means-tested government benefits like Medicaid. It is one of three types of special needs trusts available in New York, and the only one a disabled person can set up for themselves if they qualify.
Are you wondering what type of special needs trust is appropriate for you or a loved one? Amoruso & Amoruso LLP can provide the answers and guidance you need to make informed decisions. Contact us today for a consultation with an experienced disability trust attorney in Greenburgh.
What Is a First-Party Special Needs Trust?
A first-party special needs trust (SNT) is a legal arrangement designed to hold assets for individuals with disabilities. Also called a self-settled trust, a first-party SNT allows a person with disabilities to retain funds from their own resources, such as an inheritance or personal injury settlement, without losing access to essential government benefits like Medicaid and Supplemental Security Income (SSI).
What Are the Benefits of a First-Party Special Needs Trust?
A disabled person can benefit from having a first-party special needs trust in several significant ways. Most importantly, it will allow the disabled individual to access their own funds without jeopardizing their eligibility for government benefits. Instead, the funds in a first-party SNT are used to enhance the quality of life of the beneficiary by providing for services not covered by Medicaid and other government programs.
What Types of Expenses Can the Trust Cover?
A first-party special needs trust can cover various expenses that are not means-tested, like:
- Clothing
- Rent
- Utilities
- Medical and dental care not covered by Medicaid
- Personal care attendants
- Housekeeping services
- Education and vocational training
- Transportation
- Recreational activities
Certain expenditures can impact eligibility or cause benefit reductions for some government programs, so trustees must understand their duties and limitations. A knowledgeable attorney can educate the trustee and beneficiary to reduce the chances of making a preventable error.
Who Can Set Up a First-Party SNT in Greenburgh?
In the past, only a parent, grandparent, legal guardian, or court could set up a trust using the disabled person’s own resources. Now, thanks to a change in federal law that Amoruso & Amoruso LLP co-founder Michael J. Amoruso advocated vigorously for, disabled New Yorkers in Greenburgh can establish this type of trust themselves if they are under 65 and legally competent.
Regardless of who is establishing the trust, working with a qualified special needs trust attorney in Greenburgh helps ensure compliance with regulations and simplifies the process. This support provides peace of mind for families and beneficiaries during estate planning.
Contact Amoruso & Amoruso LLP Today to Discuss First-Party Special Needs Trusts
At Amoruso & Amoruso LLP, we believe in Empowering You to Care For the Ones You Love™️. For help establishing a special needs trust in Greenburgh, contact our team today for a consultation.
