If you have a loved one with a disability but worry they could lose access to public benefits if you include them in your estate plan, creating a special needs trust (SNT) may be a good solution. An SNT allows you to set aside resources to support your loved one without compromising their eligibility for benefits like Medicaid and Supplemental Security Income (SSI).
The experienced attorneys at Amoruso & Amoruso LLP are nationally recognized leaders in elder law and estate planning in New York. With nearly 60 years of combined legal experience, our Westchester County attorneys include special needs planning as part of our signature comprehensive estate planning service. We can help you set up a special needs trust that provides money to enhance your loved one’s quality of life without jeopardizing access to other crucial disability benefits. Contact us today for an initial consultation.
What Is a Special Needs Trust?
A special needs trust is a trust setting aside assets for the benefit of a disabled person. Depending on the type of trust, funding may come from various sources, including:
- The special needs individual’s assets, such as an inheritance or personal injury settlement
- Assets from a parent, grandparent, friend, or a legal guardian
To avoid interfering with eligibility for government benefits, the special needs trust must be structured carefully. An estate planning attorney can explain the requirements and set up a trust that works in the special needs individual’s best interests and complies with New York law.
What Are the Benefits of a Special Needs Trust?
There are two primary benefits of a special needs trust:
- It can be used to pay for anything that is not covered by Medicaid and would improve your loved one’s quality of life, such as a home for them to live in or additional in-home care.
- The assets you add to the SNT won’t make your loved one ineligible for benefits such as SSI, Medicaid, or the Supplemental Nutrition Assistance Program (SNAP).
Determining the Right Trustee for Your Special Needs Trust
Choosing a trustee to administer a special needs trust is a challenging task. You need to select someone who feels comfortable fulfilling complex duties such as an annual accounting of all financial transactions of the trust, keeping detailed records, making appropriate distributions, and handling the investment of the trust’s assets. Banks, trust companies, and brokerage houses can act as trustees for special needs trusts. With court approval, a trustee can enlist the help of a financial advisor or accountant to help with the annual accounting responsibilities.
How Amoruso & Amoruso LLP Can Help
At Amoruso & Amoruso LLP, we have a unique connection to special needs trusts. As a sight and hearing-impaired individual, Attorney Michael J. Amoruso was instrumental in advocating for the passage of federal laws enabling individuals with disabilities to create their own special needs trusts under certain circumstances. Let us put that knowledge and experience to work for you. Contact us today for help establishing a special needs trust in Westchester County.
