Supplemental Needs Trusts
Families caring for a loved one with a disability often face an important question: How can I provide financial resources for my loved one without unnecessarily jeopardizing the government benefits on which he or she relies?
A Supplemental Needs Trust can be an important planning tool for an individual with a disability who receives, or may become eligible to receive, means-tested government benefits such as Medicaid and Supplemental Security Income (SSI). When properly structured, a Supplemental Needs Trust is designed to supplement, rather than replace, available government benefits while providing additional resources to enhance the beneficiary’s quality of life.
At Mavros Panagos Law, we assist clients with the preparation of both third-party and first-party Supplemental Needs Trusts, as well as supplemental needs provisions incorporated into a comprehensive estate plan.
Third-Party Supplemental Needs Trusts may be established and funded with assets belonging to someone other than the beneficiary, such as a parent, grandparent, or other family member, as part of that person’s estate planning.
First-Party Supplemental Needs Trusts are funded with assets belonging to the individual with a disability. These trusts require careful planning and must satisfy applicable Federal and New York requirements in order to protect the beneficiary’s eligibility for means-tested government benefits. Depending upon the circumstances, a first-party Supplemental Needs Trust may be appropriate when an individual with a disability receives an inheritance, personal injury settlement, or other assets in his or her own name.
Whether planning in advance for a loved one or addressing assets already belonging to an individual with a disability, Mavros Panagos Law works with clients to determine the appropriate form of Supplemental Needs Trust and to draft the trust in accordance with the beneficiary’s particular circumstances and long-term needs.
The goal is not simply to preserve eligibility for benefits. It is to create a thoughtful plan that allows available resources to be managed and used to improve the beneficiary’s care, comfort, independence, and quality of life.
Contact Mavros Panagos Law to discuss whether a Supplemental Needs Trust should be part of your estate or special-needs planning.