Special Needs Trusts have to be Sole Benefit Trusts
If a person is disabled and cannot support themselves, they may need the support of government benefits over the long term to help with costs of housing, health insurance, transportation, residential services, and home health aides. If they then receive assets through a personal injury settlement, the impact of the settlement on their eligibility for benefits must be taken into account....
Special Needs Trusts play Vital Role for SSI & Medicaid Recipients
A person with disabilities who is incapable of engaging in substantial gainful activity for self-support in the competititve workplace may be receiving Supplemental Security Income (SSI) and the Medicaid benefits for health care that accompany the SSI. http://www.state.nj.us/humanservices/dmahs/clients/medicaid/abd/index.html The person may reside in the community, in an assisted living...
Trust & Transfer Planning for VA Benefits may not be effective for Medicaid Planning
A Medicaid application for nursing home level services is not filed until your countable, available assets are below a specific limit. Transfers (gifts) and Trusts can be used in certain circumstances. When our attorneys are analyzing the laws and developing your asset protection plan, the two major issues in this regard are (1) whether the funds in the Trust continue to be countable assets,...
Not all Discretionary Trusts are Special Needs Trusts
Over the years in my practice I have encountered many situations in which a discretionary trust was written into a Will to receive the inheritance of a person who had disabilities. Often the testator (person who was signing the Will) specifically wanted to protect the funds becuse they knew the person with disabilities relied on government programs like Medicaid or SSI. However, since the...
Special Needs Trusts and SSI recipients
If you receive Supplemental Security Income (SSI) benefits and you are the beneficiary of a Special Needs Trust (“SNT”) or a Supplemental Needs or Supplemental Benefits (Third Party) Trust, your Trustee must be careful in the management of the Trust to preserve your benefits. The Trust cannot be used to pay for shelter or food. It is designed to pay for supplemental or...
DDD Now Insisting on Medicaid Eligibility for All Clients
The New Jersey Division of Developmental Disabilities (DDD) is now insisting that all of their clients establish eligibility for Medicaid and maintain that eligibility to receive DDD services. This is a departure from previous policy whereby the Division provided many services to ineligible clients and either charged them for those services or maintained a lien on their estate. DDD clients...