New Jersey Special Needs Planning Attorney

A special needs trust is a legal arrangement designed to provide for the financial needs of individuals with disabilities without jeopardizing their eligibility for government benefits such as Medicaid or Supplemental Security Income (SSI). These trusts benefit individuals with disabilities who require long-term care and support.

Special needs trusts offer several benefits, including preserving eligibility for government benefits, protecting assets from creditors, ensuring proper management of funds, providing for the individual’s supplemental needs beyond what government benefits cover, and allowing family members to contribute to the individual’s care without affecting eligibility for benefits.

A special needs trust can cover a wide range of expenses not covered by government benefits, including medical and dental expenses not covered by Medicaid, therapy and rehabilitation costs, educational expenses, transportation, personal care attendants, recreational activities, and quality of life enhancements.

A special needs trust can be established by a parent, grandparent, legal guardian, or court for the benefit of an individual with a disability. It can also be self-funded by the individual with a disability, although certain rules and restrictions may apply to self-funded trusts.

When properly structured, a special needs trust does not count as a resource for purposes of determining eligibility for means-tested government benefits such as Medicaid and SSI. This allows the individual with a disability to continue receiving these benefits while still benefiting from the assets held in the trust.

Yes, there are different types of special needs trusts, including first-party (self-funded) trusts, third-party trusts, pooled trusts, and ABLE accounts. Each type of trust has its own eligibility criteria, rules, and limitations, so it’s essential to work with an attorney experienced in special needs planning to determine the most appropriate option for your situation.

Establishing a special needs trust typically involves working with an experienced attorney who specializes in special needs planning. The attorney will help you draft the trust document, identify appropriate trustees, ensure compliance with relevant laws and regulations, and fund the trust with assets. It’s essential to follow all legal requirements to ensure the trust is valid and effective.

Yes, funds from a special needs trust can be used to pay for housing and living expenses, including rent or mortgage payments, property taxes, utilities, insurance, and maintenance costs. However, it’s important to structure these payments in a way that does not jeopardize the individual’s eligibility for government benefits.

Special needs trusts can typically be modified or terminated under certain circumstances, such as changes in the beneficiary’s needs or financial situation, changes in the law, or other unforeseen circumstances. However, any modifications or terminations must comply with legal requirements and may require court approval in some cases.

The cost of establishing a special needs trust varies depending on factors such as the complexity of the trust, the attorney’s fee structure, and your geographic location. Some attorneys charge a flat fee for drafting a trust, while others may bill hourly for their services. It’s advisable to discuss the costs upfront with your attorney during the initial consultation.