The Benefits of a Special Needs Trust

A Special Needs Trust, also known as a Supplemental Needs Trust, is a legal arrangement that allows assets to be held and managed for the benefit of a person with a disability. While many families first learn about Supplemental Needs Trusts as a way to help preserve eligibility for government benefits such as Supplemental Security Income (SSI) and Medicaid, their benefits extend beyond perserving public benefits.

The law recognizes that the needs of an individual with a disability are often extensive and ongoing. Government programs are designed to provide support and help meet basic needs. However, families often wish to provide opportunities and experiences that enhance their loved one's quality of life beyond what public benefits may cover.

A properly drafted and administered Supplemental Needs Trust can be used to hold assets for the benefit of an individual with a disability while helping preserve eligibility for certain public benefits. Funds in a trust may be used to help pay for expenses such as education, recreation, transportation, technology, therapies, personal services, and other items that contribute to a more fulfilling and independent life.

In addition to preserving benefits and enhancing quality of life, a Supplemental Needs Trust can provide long-term structure and continuity. A trust allows assets to be professionally managed by a trustee and can serve as a roadmap for future caregivers, trustees, and family members, helping ensure that resources are used in a manner consistent with the beneficiary's needs and the family's wishes.

Because Supplemental Needs Trusts are governed by complex federal and New York laws, careful planning is essential. Understanding the law is an important first step, but applying it to a family's unique circumstances often requires thoughtful consideration and individualized guidance.

Questions about Supplemental Needs Trusts or other aspects of special needs planning? Contact Moskowitz Legal Group, LLP to learn more.