Special Needs Trusts

“Special Needs” Planning refers to estate and long-term care planning for individuals who have been disabled since birth or became disabled due to an injury or accident later in life. Special Needs Planning requires a working knowledge of a broad range of legal and financial issues. This includes an understanding of special (or “supplemental”) needs trusts, eligibility standards for various governmental benefits, estate, gift and income taxation and guardianship issues. Effective advocacy in this area also requires a familiarity both with the spectrum of disabilities that impact one's ability to live independently and with the various local organizations that provide care and support services. Bringing knowledge and skill in both areas, our office assists disabled clients and their families with navigating this complex legal area. Our office also provides assistance with structuring an estate plan to ensure that a disabled child is cared for after a parent's death, ensuring that an inheritance will not disrupt a disabled individual's continued participation in Medicaid, and preserving a personal injury settlement for the particular needs of the disabled person. It is our objective to recognize and understand the complex financial and legal issues facing our clients with special needs.

In the right circumstances, the use of a special needs trust can be crucial in helping to ensure that individuals have the financial resources (now and in the future) to support their needs without losing their eligibility for public benefits such as Supplemental Security Income (SSI) and Medicaid. The SSI and Medicaid laws and regulations are multifaceted and constantly changing, making them difficult for individuals to navigate. A properly drafted Special Needs Trust secures a client's continued eligibility for public benefits to cover basic needs of food, shelter and medical care, while ensuring that certain trust assets remain available to enhance a client's life options. It is important to note that “special needs” is a generic term used to describe any trust intended to provide financial support to a disabled individual without causing the beneficiary to lose those public benefits to which he or she is entitled. It also is important to bear in mind that the existence of a special needs trust does not, in itself, make public benefits available. On the contrary, the beneficiary must qualify for the benefits program either before or after the Special Needs Trust is established based upon whatever medical, financial or other criteria apply. While in some circumstances the level of benefits may be reduced, a Special Needs Trust should not cause a loss of benefits if properly drafted.