Astoria Estate Planning 102: Setting Up A Special Needs Trust In NY
Estate Planning 102: Setting Up A Special Needs Trust In NY
Are you ready to take your estate planning to the next level? If you have a loved one with special needs, it’s important to know how to protect their financial future. That’s where a special needs trust comes in. In New York State, setting up a special needs trust is a smart move for families with a disabled family member. This legal tool allows you to provide for your loved one’s needs without jeopardizing their eligibility for government benefits. So if you’re looking for estate law help in Astoria (which is probably the case is you’re reading this now), here’s what you need to know about creating a special needs trust within the legal confines of NY state law.
What Is a Special Needs Trust?
A special needs trust is a legal tool that allows you to set aside money for a loved one with disabilities. This money is used to supplement the government benefits that they receive, rather than replace them. By creating a special needs trust, you can ensure that your loved one has access to the resources they need while still qualifying for important programs like Medicaid and Supplemental Security Income (SSI).
Why Is a Special Needs Trust Important in NY?
In New York State, a person with disabilities may be eligible for government benefits like Medicaid and SSI. These programs can provide essential medical care and financial support. However, they also have strict income and asset limits. If your loved one receives an inheritance, settlement, or other windfall, it could disqualify them from receiving these benefits. That’s where a special needs trust comes in. By setting up a special needs trust for the disabled, you can provide for your loved one without jeopardizing their eligibility for government benefits.
How to Set Up a Special Needs Trust in NY
If you’re ready to set up a special needs trust in NY, there are a few steps you’ll need to take;
- Choose a trustee; The trustee is the person who will manage the trust and make decisions about how the money is spent. You may want to choose a family member, friend, or professional trustee.
- Decide on the funding; You can fund the trust with cash, securities, real estate, or other assets. It’s important to work with an attorney to ensure that the trust is properly funded and structured.
- Draft the trust document; The trust document is the legal agreement that sets out the rules for the trust. It should specify the beneficiary, trustee, funding, and how the money will be used.
- Fund the trust; Once the trust is created, you’ll need to transfer assets into it. This may involve selling assets, transferring ownership, or making a gift.
- Manage the trust; The trustee is responsible for managing the trust and making decisions about how the money is spent. They must follow the rules set out in the trust document and act in the best interests of the beneficiary.
Setting up a special needs trust in NY is an important step in protecting the financial future of your loved one with disabilities. By working with an attorney, you can ensure that the trust is properly structured and funded.