News

What is SPECIAL About a Special Needs Trust?
Bucks County, PA
10/14/2024 01:24 PM

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

Reference
Barbara Boyd
6094528411
 
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