Planning for the future of a loved one with special needs involves careful thinking, especially about Medicaid eligibility. In New York, special needs trusts (SNTs) offer a valuable tool to ensure your loved one gets the care they need without risking their benefits.
What is a special needs trust?
A special needs or supplemental needs trust holds assets for a disabled person under age 65. This trust lets the person keep Medicaid eligibility and other government benefits while using the trust assets to pay for extra needs not covered by these programs.
Key requirements for special needs trusts in New York
To set up a special needs trust in New York, you must follow the following:
- Creation: The disabled person, their parent, grandparent, legal guardian or a court must create the trust.
- Assets: The person’s assets must fund the trust.
- Medicaid payback: The trust must include a rule requiring repayment of any remaining assets to the state for Medicaid benefits upon the disabled person’s death.
These rules ensure that the trust serves its purpose without affecting Medicaid eligibility.
Advantages of a special needs trust
A special needs trust can provide these advantages:
- Keeping key benefits: By putting assets in the trust, you ensure your loved one keeps Medicaid and other key benefits.
- Better quality of life: The trust can pay for things Medicaid doesn’t cover, like school, leisure and travel, and improving the person’s life.
- Financial safety: The trust offers a way to manage and protect assets for the long-term good of the person with special needs.
Setting up a special needs trust in New York is a smart way to protect your loved one’s future. If you have questions or need help with Medicaid planning, consider talking to a legal expert to ensure your loved one gets the right help.
