Monday, March 24, 2014

Special Needs Trust and Planning for Children with Disabilities



If an individual with special needs depends on you for financial resources, your estate plan should address how that support will continue if you are no longer around. Proper planning helps to ensure that your child with special needs receives financial assistance in the future without hindering his or her eligibility for government assistance programs.

Also referred to as a “supplemental care trust”, the Special Needs Trust can serve as a primary savings tool for a child’s future. The Special Needs Trust allows the transferring of savings to your child without jeopardizing his or her ability to receive benefits such as Supplemental Security Income and Medicaid benefits. This trust also has an additional advantage as well; friends and family members can make gifts of money, which further contributes to the financial well-being of your child.

When planning a Special Needs Trust, there are a number of important things to reflect on. Remember to consider the severity of the disability of the individual, future living requirements, who would act as a guardian for that individual (if the parent is not able to care for them), and other crucial factors.

When funding a Special Needs Trust, the most important thing to remember is that the trust, not your child, must be the heir or beneficiary of any funds you or anyone wants to transfer to your child. Each state has a different set of limitations on how money in special needs trusts can or cannot be used. Generally however, it can be used for supplemental needs (needs not met by provided government benefits).

If you are looking into setting up a Special Needs Trust, it is wise to select an attorney experienced in working with families of children with special needs (Contact Attorney Inna Fershteyn). The attorney’s role is essential - to properly set up and establish the trust, as well as the responsibilities and limitations of the trustee.

The most important thing to take away, is to not overlook the importance Special Needs Trust. Especially where a disabled child is involved, it is of greater importance that funds be available when needed.

It is never too early to start planning for your child’s future. Making the right moves today will ensure your child’s needs will always be met. If you require assistance with your Special Needs Planning, contact NY Supplemental Needs Trust Planning Attorney Inna Fershteyn today.

Law Office of Inna Fershteyn and Associates, P.C.
(718) 333-2394
1517 Voorhies Avenue, Suite 4
Brooklyn, NY 11235

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