WHAT IS SPECIAL
ABOUT A
SPECIAL NEEDS TRUST?
By Barbara J. Boyd, Esquire
A Special Needs Trust (SNT) is a trust
established for an individual with disabilities. A SNT is intended to allow
financial resources to remain available to help a person with disabilities
under age 65 who receives Medical Assistance (MA), without having those
financial resources jeopardize their eligibility for the benefits.
In most cases, for someone to be
eligible for MA or SSI, he may own no more than $2,000 in assets. If your loved
one with disabilities will receive funds from an inheritance, a personal injury
lawsuit, life insurance proceeds or a gift, and you want your loved one to
remain eligible for MA or SSI, those funds must be placed in a SNT, properly
drafted and approved by the Department of Public Welfare, the Social Security
Office and the court.
If you are the parent or grandparent of
an individual with special needs, and you plan to leave your child an
inheritance in your Will, your Will must direct your disabled child’s share into
a SNT, established when you prepare your Will, or that inheritance could make
your child ineligible to receive benefits, which we never want to happen.
It is much easier to establish a SNT before your loved one receives the funds
because then it is not necessary to have court approval. This is done when an
attorney prepares your Will. At the same time, a Special Needs Trust will also be
set up, even though the trust may not be funded until after you pass away.
I like to think of it this way: A special needs trust is special because it
legally hides assets from consideration by the government. These assets can be
used to supplement your loved one’s life.
Let’s talk more about
a Special Needs Trust for your loved one. Please call the attorneys at Maselli,
Mills & Fornal, P.C.
609-452-8411 or
267-914-7400
