Special Needs Trust Tag

The new uniform trust code which goes into effect in New Jersey on July 17th has a section dedicated to “special needs trusts.”  See NJSA 3B:31-37.  The section concerns both first-party trusts (often called “Special Needs Trusts” or even “d(4)a trusts,” referring to the section of federal Medicaid law which authorizes them) and third party trusts (often...

Previously in this space I told you that the federal government had enacted the ABLE Act and we were waiting for New Jersey to enact its own version of the ABLE program.  The law is known as Achieving a Better Life Experience (ABLE) (S-313, HR-647) and was signed into law by the President Obama on December 14, 2015. The States have to adopt their own implementing programs, though. New...

If you’ve been caring for your child who has special needs, you have deep personal knowledge of how your child behaves and responds. You know what they like and what they hate. You know what triggers an anxious or distressed reaction. It could be a flavor, a show, a color, or a person. As an aging parent, you are probably concerned about who will take care of your child when you are...

The Special Needs Trust Fairness Act of 2015 ( S-349) would correct an error in OBRA ’93, which was a major revision to the Medicaid Act that allowed Medicaid applicants or recipients under age 65 to make penalty-free transfers of their assets or income into a first-party Special Needs Trust for their sole benefit. To qualify for the exemption, the Trust had to be established by a...

When a minor who has disabilities reaches age 18 and is incapacitated, their parent or custodian will typically file for Guardianship. In some cases, the minor has assets under Court control that are held in a guardianship court account through the county Surrogate. These might be assets that were received through a prior personal injury lawsuit award or settlement, or assets that the  minor...

In Maurice Needham vs. Director of the Office of Medicaid, the Massachusetts Court of Appeals upheld a transfer penalty imposed by the State Medicaid program after the Medicaid applicant obtained a court order amending his trust. There was a revocable Trust containing Needham’s house, and an irrevocable Trust for Needham’s benefit which was the sole beneficiary of the revocable...

Laws change. Sometimes, federal law stays the same and state laws implementing it change. State statutes may remain the same but the state regulations change. State regulations may stay the same, but the executive branch agency issues advisory memoranda which change the procedures. That’s what occurred back in 2001 when the State of New Jersey Division of Medical Assistance and health...

Parents of children with special needs are typically aware that their child may need to be financially eligible for important governmental programs through Medicaid, SSI or the DDD. Under these programs, there is an limit on the amount of assets the child can have. These parents will often consider (1) leaving the child’s share of the estate in a supplemental needs trust, or (2) not...

Oftentimes,  a client will come to talk to me and say “I want to put my assets into a trust.” My question of course is,  What are you trying to accomplish? Who suggested it?What do you think a trust is?” Sometimes the answer is, “so my assets don’t get spent on a nursing home.” Often the client says,”I don’t want my assets to be spent on a...

Legislation is pending in the Congress concerning the payment of a veteran’s survivor benefits. Under current law, a veteran’s survivor benefits which are payable to the veteran’s children must be paid directly to the beneficiary. If the beneficiary is disabled and is dependent upon other governmental benefits which are means-tested, this could cause the recipient to be...