Long Island Elder Law & Estate Planning

Can I Protect My Inheritance With a Special Needs Trust?People with disabilities are often unable to earn much income on their own. As a result, they have limited resources, and they qualify for need-based government programs. Medicaid is a health insurance program for people with financial need, and Supplemental Security Income is a source of modest financial support that can be used to pay for basic needs.

If a person with a disability who is enrolled in these programs was to receive a direct inheritance, this would result in an improved financial status and a potential loss of eligibility. Under these circumstances, the inheritance could be used to fund a first party or self-settled special needs trust for the benefit of the inheritor.

Under program rules, the trustee could use the assets to enhance the beneficiary’s quality of life. The assets in a special needs trust could be utilized to pay for things that the government benefits do not cover. As long as no rules are violated, ongoing eligibility for Medicaid and Supplemental Security Income would not be impacted.

We should emphasize the fact that the beneficiary could not directly control the actions of the special needs trust or directly handle the resources. The trustee would be the sole administrator, and the trustee would handle the transactions.

Medicaid Recovery

When a first party special needs trust has been established for the benefit of a person with a disability, after this individual’s death, the Medicaid program would seek recovery from his or her estate. As a result, the assets in the trust would be in play.

Free Special Needs Planning Report

Our firm has prepared an in-depth report on special needs planning. It covers special needs trusts, and it will provide you with a lot of very useful information. The rules are complex, but the report is written in a very understandable and down-to-earth fashion.

This report is being offered to our readers on a complimentary basis right now, so there are no risks involved if you decide to access your copy. You can visit this page if you would like to obtain access: Smithtown NY Special Needs Planning.

Additional Estate Planning Content

We provided a great deal of ongoing information about estate planning and elder law topics on this blog, but we also contribute content over at Forbes.com. If you would like to visit our page there, click this link: Forbes Contributor Mark Eghrari.

Take the Next Step

Written information is great, and you should certainly educate yourself. However, if you are ready to take the next step and discuss things with a licensed professional, our firm can help. We offer free consultations, and you can send us a message through our contact page to set up an appointment: Long Island NY Estate Planning Attorneys.

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About Mark S. Eghrari, Estate Planning Attorney

Mark S. Eghrari is an attorney in private practice in Smithtown, New York. He has been in practice since 1988. Mark S. Eghrari provides extensive estate and tax planning services to individuals and businesses. Mr. Eghrari’s primary focus is helping clients avoid probate, minimize or eliminate Federal and State Estate taxes and protect their assets from the high cost of nursing care, if they become ill.