Planning for the future of a loved one with special needs requires careful thought and specialized knowledge. A Supplemental Needs Trust (SNT), also known as a Special Needs Trust, is a vital tool that allows families to provide financial support to individuals with disabilities without jeopardizing their eligibility for essential government benefits like Medicaid and Supplemental Security Income (SSI). At Cara Law, we are dedicated to helping families in Garden City, NY, and the surrounding areas create customized SNTs that ensure their loved ones receive the care and quality of life they deserve.

A Supplemental Needs Trust is a legal arrangement designed to manage and protect assets for an individual with disabilities. The key advantage of an SNT is that it allows the beneficiary to receive financial assistance for a variety of needs, such as medical care, education, and personal expenses, while still maintaining their eligibility for government benefits. These benefits are often crucial for covering basic living expenses, and without an SNT, even a small inheritance or gift could disqualify the individual from receiving them.

There are different types of Supplemental Needs Trusts, each tailored to specific circumstances:

• First-Party SNT: Funded with the assets of the individual with disabilities, such as through an inheritance or personal injury settlement. Upon the beneficiary’s death, any remaining assets are typically used to repay the state for Medicaid benefits received.
• Third-Party SNT: Established and funded by someone other than the beneficiary, often a parent or grandparent, as part of their estate planning. There is no requirement to repay Medicaid after the beneficiary’s death, making it a preferred option for many families.
• Pooled SNT: Managed by a nonprofit organization, pooling resources from multiple beneficiaries while maintaining individual accounts. This option is ideal for those with smaller amounts to invest, as it reduces administrative costs.

Benefits of a Supplemental Needs Trust

Creating a Supplemental Needs Trust offers several significant benefits:

• Protection of Government Benefits: The most critical advantage of an SNT is that it preserves the beneficiary’s eligibility for government programs like Medicaid and SSI. These programs have strict asset and income limits, and an SNT ensures that the funds set aside for the beneficiary’s care do not disqualify them from receiving these essential benefits.

• Enhanced Quality of Life: While government benefits cover basic needs, an SNT can provide for additional expenses that improve the beneficiary’s quality of life. This may include things like specialized medical care, educational programs, recreational activities, and personal care services that are not covered by Medicaid or SSI.

• Financial Security: An SNT provides a structured way to manage the beneficiary’s assets, ensuring that the funds are used appropriately and for their intended purpose. This protects the beneficiary from financial exploitation and mismanagement.

• Peace of Mind for Families: Establishing an SNT gives families peace of mind knowing that their loved one’s financial future is secure. They can be assured that the funds will be managed in a way that benefits the individual while preserving their access to government support.

How Cara Law Can Help

At Cara Law, we have extensive experience in creating and managing Supplemental Needs Trusts. We understand the intricacies of special needs planning and are committed to providing personalized, compassionate service to each of our clients. When you work with us, we will guide you through every step of the process, from selecting the right type of trust to drafting the trust document and funding the trust.

Our approach is client-centered, and we take the time to understand your family’s unique needs and goals. Whether you are planning for a child, sibling, or another relative with special needs, we will tailor our services to ensure that the trust meets your specific requirements.