There are different kinds of trusts that the Elder Law Attorneys at Lamson & Cutner, P.C., may recommend to you, depending upon your individual needs and circumstances. Below you will find a discussion regarding Supplemental Needs Trust.
Supplemental Needs Trust
For individuals of any age with disabilities, a supplemental needs trust, sometimes referred to as a special needs trust, should be considered. These trusts can pay for luxuries and necessities for disabled individuals, without jeopardizing their eligibility for Medicaid and Supplemental Security Income (SSI).
All types of assets may be held in this type of trust, including cash, certificates of deposit, stocks or bonds, or real estate.
Disabled Persons & Supplemental Needs Trusts
First Party Supplemental Needs Trust: A disabled person under the age of 65 may use his own funds or property to create a supplemental needs trust for his own benefit, without jeopardizing his eligibility of Medicaid or SSI. Any amount of the trust’s income or principal may be spent on behalf of the disabled person during his lifetime. However, upon his death, New York State will have the right to recover the remaining funds in the trust to the extent of the Medicaid charges that were incurred by the disabled beneficiary.
Third Party Supplemental Needs Trust: A parent, family member or friend also has the right to create a supplemental needs trust for a disabled person of any age. Again the disabled beneficiary’s right to receive public benefits will not be affected. Upon the disabled beneficiary’s death, the trust assets will be distributed according to the instructions given in the trust agreement by the individual who funded the trust, and the State will not have the right to recover anything from the trust. The trust may be created during the lifetime of the creator, or by his will.
Trusts are complex legal documents
Whether to establish a trust, and the terms and conditions of the trust, are matters to review with competent legal counsel. Trusts are complex documents that should be tailored to the individual needs and circumstances of the individuals involved.
Disabled persons and their families from the NYC Metropolitan Area are invited to call Toll Free 866-524-1818 or email Lamson & Cutner, P.C. and feel comfortable and confident that their New York Trust attorneys will advise you on the details of Supplemental Needs Trust with compassion and understanding.
Click here to learn more about Pooled Income Trusts.
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