Long Island Supplemental Needs Trusts Lawyers

Safeguarding Individuals With Disabilities in New York

Estate planning is critical for those with a family member who has a disability. When planning for the future involves a disabled beneficiary or grantor, you may worry that the funds left in your estate will affect your loved one’s eligibility for government benefits like Medicaid and Social Security. However, you can still provide a comfortable future for your loved one without giving up their public benefits by establishing a Supplemental Needs Trust (SNT).

Special needs trusts are intended to provide long-term care for a person with disabilities. Rather than gifting money directly, you place it into an account managed by a trustee of your choosing. This protects the individual from being disqualified from SSI and Medicaid benefits while ensuring they have the resources they need for a high quality of life.

If you or a loved one would benefit from special needs planning, call Davidov Law Group today at (516) 253-1366 to schedule your assessment.

What Is a Supplemental Needs Trust?

An SNT allows a beneficiary with a disability to have an unlimited amount of assets held in trust for their benefit without those assets being “counted” by the government. The trust does not replace government benefits; instead, it provides supplemental care over and above what the government provides.

The funds can be used to improve the individual’s lifestyle by covering:

• Education and vocational training

• Medical and dental care not covered by Medicaid

• Vacations, recreation, and hobbies

• Home furnishings and electronics

• Vehicles and specialized transportation

• Personal care aides and assistive devices

The Three Types of SNTs in New York

1. First-Party Trust: Funded with assets owned by the individual with the disability (such as a personal injury settlement). These often include a “payback clause” requiring remaining funds to be returned to Medicaid upon the individual’s death.

2. Third-Party Trust: Funded by family members (parents, grandparents, etc.). Because the money never belonged to the beneficiary, there is usually no obligation to return funds to Medicaid; remaining assets can be passed to other heirs.

3. Pooled Trust: Administered by a non-profit organization that manages accounts for many different beneficiaries. This provides relief for family members who do not want to manage the trust themselves. These usually require Medicaid repayment.

FAQs About Supplemental Needs Trusts in New York

Why Should I Consider Setting Up an SNT?

If you leave money directly to a beneficiary with special needs, it could disqualify them from SSI or Medicaid. An SNT preserves eligibility while providing additional financial resources for their care and quality of life.

How Is a Supplemental Needs Trust Funded?

It is vital to work with an experienced attorney to ensure assets are properly titled. Options for funding include:

• Cash or investments (stocks, bonds, mutual funds)

• Real estate

• Life insurance policies (designating the trust as the beneficiary)

• Personal property (vehicles or other assets)

Who Can Be a Trustee?

The trustee can be a family member, a professional, or a financial institution. This entity is responsible for managing assets and ensuring they are used in the beneficiary’s best interests without jeopardizing benefits.

What Are the Restrictions on How Trust Funds Are Used?

Trust funds should not be used for anything that violates government regulations regarding benefit eligibility. This typically includes food, shelter, and medical expenses already covered by Medicaid or SSI.

What Happens After the Beneficiary Passes Away?

In a First-Party SNT, remaining funds must reimburse Medicaid for benefits provided during the individual’s life. In a Third-Party SNT, assets are distributed to other beneficiaries (such as siblings or charities) as specified in the trust document.

How an Attorney Helps Create Your Trust

SNTs are complicated legal documents that can have severe implications if poorly designed. Because many of these trusts are irrevocable, they are extremely difficult—if not impossible—to change once created.

A knowledgeable special needs trust attorney will:

• Prevent Costly Mistakes: Ensuring the trust language complies with current New York and federal law to avoid benefit disqualification.

• Asset Protection: Assisting with the proper titling and funding of the trust.

• Trustee Guidance: Helping you choose a trustee and ensuring they understand their fiduciary duties.

• Holistic Planning: Integrating the SNT with your broader estate and gift tax planning.

Why Choose Davidov Law Group?

At Davidov Law Group, our founding attorneys are a married couple who understand firsthand the importance of protecting a family’s future. We recognize that every family is unique, and we promise to listen to your concerns to craft a plan that matches your specific goals.

We have a deep understanding of New York law because we work with clients to create these trusts every day. We provide the exceptional financial expertise of a high-level firm with the personal touch of a close family friend.

Contact our firm today at (516) 253-1366 for skilled legal assistance in establishing a Supplemental Needs Trust and securing your loved one’s future.