If you love someone with special needs in Greenburgh, NY, you may be wondering how to provide for them once you pass away. A special needs trust (SNT) allows you to set aside funds for the disabled individual’s comfort and care without disqualifying them from critical government benefits. An experienced special needs trust attorney from Amoruso & Amoruso LLP can help you draft the trust document to accomplish your goals.
Why Work with Amoruso & Amoruso LLP for Special Needs Trusts?
The estate planning attorneys at Amoruso & Amoruso LLP focus on Empowering You to Care for the Ones You Loveâ„¢. As a disabled individual himself, firm co-founder Michael J. Amoruso has been at the forefront of advocacy for changes to the laws regarding special needs trusts. With nearly 60 years of combined experience, our law firm incorporates special needs planning into our signature comprehensive estate planning services. Contact us today for help setting up a special needs trust in Greenburgh.
Types of Special Needs Trusts in Greenburgh
There are three types of special needs trusts:
- First-party special needs trust – Receives funding from the disabled individual’s assets, such as an inheritance or personal injury settlement
- Third-party special needs trust – Funds come from someone other than the beneficiary, such as parents or grandparents
- Pooled trusts – Managed by nonprofit organizations and work by pooling the resources of multiple beneficiaries into one trust
These SNTs can allow special needs individuals to remain eligible for means-tested government benefits like Medicaid and provide beneficiaries with supplemental income for expenses not covered by those benefits.
Special Needs Trust Spending Rules
Specific rules limit how a special needs trust may distribute funds to supplement a beneficiary’s needs without jeopardizing their access to public benefits. For example, an SNT cannot pay for basic support needs like food or housing. However, the trust can pay for other expenses that can enhance an individual’s quality of life, such as education, personal care attendants, recreational activities, home improvements to install disability accommodations, and travel expenses.
Eligibility for Establishing a Special Needs Trust
A person may qualify to become the beneficiary of a special needs trust if they have a recognized disability that prevents them from becoming financially self-sufficient. The disability must have begun before the individual turned 65.
Funding a Special Needs Trust and Potential Tax Implications
Funding for a special needs trust in Greenburgh can come from a variety of assets, such as:
- Cash or savings
- Legal settlements
- Inheritances
- Real estate
- Personal property
- Retirement accounts
However, it is important to be aware that funding a special needs trust can trigger complex tax considerations. Choosing a trustee with an understanding of the tax implications and reporting requirements associated with SNTs is crucial.
Set Up a Special Needs Trust With Our Greenburgh Estate Planning Attorneys
Special needs trusts can give you comfort in knowing that a disabled loved one will be cared for after you pass away. An experienced estate planning lawyer from Amoruso & Amoruso LLP can advise you on the type of SNT that works for your circumstances and tailor it to meet your loved one’s needs. Contact us today for an initial consultation.
