Special Needs Planning

Planning for the care and financial security of a loved one with physical, mental and/or developmental disabilities can be challenging. It is essential that proper tools are used to fund their long-term personal and financial needs while maintaining their eligibility for need-based government benefits.

Assets of a properly drafted Special Needs Trust (SNT) are not considered “available resources” for the purpose of qualifying for and retaining benefits including Medicaid, Supplemental Security Income and subsidized housing. Permissible disbursements from an SNT include recreational and vocational activities, hobbies and vacations, educational and training opportunities, augmentative communication equipment, professional services for the beneficiary including attorneys and accountants, and procurement and maintenance of a pet or service animal.

“Self-Settled” Special Needs Trusts are funded with the assets of the beneficiary, often realized through a personal injury settlement. Third parties, usually parents and grandparents, may also establish an SNT for their loved one during life or by will. It is important to do so, because an outright transfer of money or real property to a disabled beneficiary may render him or her ineligible for need-based benefits.

At Gelson, D’Apolito & Curtis we can help you coordinate the financial planning necessary for your loved one with special needs.