Special Needs Trusts in Bucks County, PA
Protect Government Benefits with Special Needs Trusts Planning
A Special Needs Trust (SNT) is a legal arrangement that holds and manages assets for an individual with disabilities without jeopardizing their SSI, Medicaid, or other government benefits. Special Needs Trust provides financial security and improves the quality of life for individuals with disabilities. It allows you to allocate money or assets for the special or supplemental needs of a disabled individual without jeopardizing their eligibility for government benefits like Supplemental Security Income (SSI) and Medical Assistance.
Notably, a relatively recent legislation allows individuals under 65 to create their own Special Needs Trusts without a court petition. (Public Law 114–255, Dec. 13, 2016, Section 5007, Fairness in Medicaid Supplemental Needs Trusts).
Benefits of a Special Needs Trust
- Preserves SSI & Medicaid eligibility
- Provides financial security without impacting benefits
- Covers supplemental expenses not included in public assistance
- Allows family contributions without risk of benefits disqualification
- Managed by a trustee to ensure proper fund distribution
With a properly-established SNT, families can enhance the quality of life for their loved ones by covering additional costs such as:
- Medical treatments not covered by Medicaid
- Transportation & travel expenses
- Education & vocational training
- Personal care services
- Recreational & social activities
Key Features of a Special Needs Trust
- Trustee Appointment: A trustee, whether an individual or a not-for-profit organization, manages the trust assets and distributes funds to meet the beneficiary’s needs. For beneficiaries under 65, a family member or friend can serve as trustee; for those over 65, a not-for-profit organization is typically required.
- Funding the Trust: A Special Needs Trust can be funded through gifts from relatives made directly to the trust or through a pour-over Will. Proper funding during the grantor’s lifetime is crucial to ensure the trust operates as intended.
- Legal Compliance: Establishing a Special Needs Trust requires compliance with federal and state laws to ensure the disabled individual does not lose government benefits. The trust must specify that the trustee has discretion over distributions to prevent the beneficiary from demanding funds directly.
Why Establish a Special Needs Trust?
Children and adults with special needs often rely on government benefits to cover essential expenses. While these benefits typically cover basic needs such as housing, food, and medical care, they often fall short of providing for additional comforts or needs.
Without a Special Needs Trust, giving money or assets directly to a disabled individual could jeopardize their government assistance. A well-structured Special Needs Trust helps maintain eligibility for benefits while allowing the beneficiary to enjoy a higher quality of life.
Get Started with a Special Needs Trust Today
If you need to set up a Special Needs Trust in Bucks County or Northeast Philadelphia, PA, please contact attorney Leonid Mikityanskiy at our Southampton, PA office at 215-357-1400. Our firm is dedicated to helping families create effective estate plans that protect their loved ones with special needs. We serve all of Bucks County, Northeast Philadelphia, and surrounding areas.