In life, there are many things unfair. One of which is having a child, grandchild, spouse, or other loved one born disabled or developing disability during their life time. Such persons need all the help they can get to lead a life of considerable value. You can help, and so can we.
Our Special Needs Trust Lawyers in Long Island are dedicated to you and the best interests of your loved ones. Let us help you ensure that your disabled loved one get all the financial support they need even when you are no more. By creating a special needs trust for your disabled beneficiary, you can keep on providing for them. Let us help you design your special needs trust today. Call us.
What is a special needs trust Long Island?
A special needs trusts is a kind of trust. Of course, trusts are legal arrangements in which the trustor (trust creator) holds assets in trust for the benefit of a beneficiary. There will be a trustee who manages the assets.
A special needs trust is a legal arrangement where assets are held in trust to be used for the benefit of a disabled person without ruining their eligibility for Medicaid benefits, social security, Supplemental security income, and other government benefits.
A special needs trust is also often called supplemental needs trust.
Reasons why you need a special needs trust
There are many reasons why creating a special needs trust can be the best thing you ever do for your disabled loved one.
- Typically, qualification for government benefits such as Medicaid is based on income. People who have a substantial source of income above a threshold amount usually do not qualify. So if you bequeath assets outright to a disabled person, they won’t receive Medicaid and the money you leave for them will only be used to replace the government benefits. Therefore, there won’t be any significant increase in their quality of life.
But by creating a special needs trust as a source of income for your disabled loved one, the assets therein would not be counted as available resources for purposes of Medicaid. Hence, your loved one’s eligibility for Medicaid would not be jeopardized as it would be if you bequeath assets to them outright in a will.
- Your loved one will then be able to enjoy luxury and other good things of life using what you left for them, while still receiving Medicaid for their healthcare and other basic expenses.
- You have the assurance that the proceeds of the trust will go in for expenses you specify. You would not worry that the funds will be used only for healthcare costs which Medicaid should handle.
- By funding assets into a special needs trust, they become unreachable by your creditors. So even when you have debts more than you have assets, you can provide for your loved one without the assets getting seized.
How special needs trusts work in Long Island
- You must be very clear in writing the terms of your trust. Special needs trusts cannot be revoked (they are a type of irrevocable trust) so you want to be sure you state explicitly in legally recognized terms how the assets will be used for your disabled loved one. This is more reason you should get help from an experienced special needs trust lawyer.
- The trust must also conform to all Long Island requirements for validity.
- You must establish the document before the beneficiary reaches the age of 65 (the age of Medicaid eligibility).
- As the trustor, you must designate a trustee who will have authority over the trust assets. This person is bound by fiduciary duty to always act in the best interest of the beneficiary.
- Note that assets placed in a special needs trust by someone other than the disabled are not subject to Medicaid’s repayment rules or look back period of 5 years. But the disabled person’s assets placed in a trust may be subject.
How our special needs trust lawyers can help you
Creating a special needs trust requires a lot of care to ensure it does exactly what you want it to do. You want to be sure your loved one receives high quality of financial and personal care when you’re no more.
And our Long Island Special Needs Trust Lawyers will go over and beyond to ensure that becomes a reality. We are committed to you and yours. Let us help you.
Contact our law office today for quick expert assistance.