If someone in your family has special needs, you know the importance of setting up a contingency plan to care for them once you die. Third-party special needs trusts in Greenburgh, NY can help you prepare for these circumstances. The experienced estate planning attorneys at Amoruso & Amoruso LLP can guide you in devising a strategy to set aside funds for a disabled loved one to enhance their quality of life and qualify for crucial government benefits.
What Is a Third-Party Special Needs Trust and Who Can Set It Up?
A third-party special needs trust (SNT) is a legal tool that allows people to set aside money or assets for a family member with disabilities without affecting their eligibility for government benefits like Medicaid or Supplemental Security Income (SSI). Funding for a third-party SNT comes from assets contributed by an outside third party, typically a parent, grandparent, a friend, or a court. Once the SNT is established, a trustee manages the funds to ensure they are used for the beneficiary’s needs while preserving their access to public assistance programs.
How Is a Third-Party Special Needs Trust Different from Other Trusts?
A third-party special needs trust differs from other types of SNTs because it is funded by someone other than the beneficiary. By contrast, a first-party SNT is comprised of the disabled individual’s own money, such as an inheritance or personal injury settlement. Pooled SNTs in New York also assist people with disabilities to qualify for Medicaid and other public benefits. However, nonprofit organizations manage pooled trusts, and their funds can come from the disabled individual or another third party.
What Are the Advantages of a Third-Party Special Needs Trust?
A third-party special needs trust’s primary benefit is that it enables others to set aside funds for the beneficiary’s benefit without making them ineligible for government programs by keeping assets out of their name. The beneficiary can use the trust’s funds for supplemental expenses, such as education, transportation, and recreational opportunities. Since the assets never belonged to the beneficiary, there are no Medicaid payback requirements, allowing any remaining funds to pass to other heirs when the beneficiary passes away.
Another key benefit of a third-party special needs trust is that it can provide long-term financial support for the beneficiary. This is particularly important for beneficiaries who need assistance for their entire lifetime. A third-party SNT can provide a stable financial cushion to help the beneficiary live comfortably.
How Can a Trust Lawyer Help Me with My Third-Party Special Needs Trust in Greenburgh, NY?
Working with an experienced Greenburgh special needs trust lawyer is crucial when crafting a comprehensive estate plan. Trusts must comply with strict laws, and any mistake could jeopardize your loved one’s access to critical long-term care benefits after you pass away. The special needs planning attorneys at Amoruso & Amoruso LLP can review your situation, explain how SNTs work, identify potential funding sources, and handle every step of the legal process to ensure that your beneficiary will be cared for long after you are gone.
Our legal team has nearly 60 years of combined experience assisting families and individuals with special needs planning in Greenburgh. Call or contact Amoruso & Amoruso LLP today to arrange a consultation with one of our respected estate planning attorneys.
