Elder Law

Supplemental Security Income (SSI) and Social Security for Hackensack Residents

About Social Security and SSI in New Jersey

Special Needs Trusts in Hackensack, New Jersey

While government benefit programs like Supplemental Security Income (SSI) and Medicaid provide substantial healthcare coverage, the cash benefits are often minimal. At the Law Offices of Benjamin D. Eckman in Hackensack, we assist families in creating special needs trusts to preserve a disabled person’s eligibility for government benefits while ensuring they have additional funds to enhance their quality of life. Our legal team helps families structure their estates or settlements in a way that protects eligibility for these critical benefits. A well-designed and properly administered special needs trust will supplement public benefits such as SSI and Medicaid without jeopardizing the recipient’s eligibility.

Protecting Government Benefits with a Special Needs Trust

A special needs trust ensures that individuals with disabilities can benefit from property or funds intended for their care without losing access to essential government assistance. In many cases, the beneficiary may lack the capacity to manage their financial affairs, making a trust an essential tool for long-term care. Special needs trusts are often used to manage inheritances or settlements for disabled individuals, including those from personal injury cases or insurance settlements. In Hackensack, creating a special needs trust is essential for Medicaid recipients to protect assets and provide for their long-term needs.

Types of Special Needs Trusts

Disability (Self-Funded) Trusts

Disability trusts, also known as d4a trusts, are created using the assets of the disabled individual. These trusts are established for individuals under 65 years old by a parent, grandparent, guardian, or court. Upon the beneficiary’s death, the trust must reimburse the state for any Medicaid payments made on their behalf.

Third-Party Created Trusts

Funded by someone other than the beneficiary, third-party trusts can provide for a disabled individual while preserving their eligibility for government benefits. These trusts may be established as living (inter vivos) trusts or testamentary trusts, which are created through a will.

Living Trusts

A living trust is ideal for parents who want to provide for a disabled child without risking the child’s eligibility for public benefits. Family members who wish to leave assets to the disabled person can direct their gifts to the trust, ensuring the individual is protected.

Testamentary Trusts

Testamentary trusts are created through a will and allow parents to provide for a disabled child after their death. However, other relatives must establish their own trust in their wills if they wish to leave assets for the child.

What Can a Special Needs Trust Pay For?

A special needs trust is designed to cover non-support items to avoid being counted as an available resource. While the trust cannot pay for food or shelter, it can cover personal items and services that improve the beneficiary’s quality of life. These may include:

  • Utilities like telephone or cable service (but not basic utilities like gas or electricity)
  • Personal care items such as toiletries and cleaning supplies
  • Household goods, furniture, and appliances necessary for the beneficiary’s residence
  • Computers, electronics, and motor vehicles
  • Travel expenses, including accommodations and meals, as well as transportation costs for a companion

The Role of the Trustee

Choosing the right trustee is critical to the success of a special needs trust. The trustee must have a deep understanding of government benefits, Medicaid, and tax laws to avoid jeopardizing the beneficiary’s eligibility for public assistance. The trustee has sole discretion over distributions and must ensure all expenditures are made directly from the trust to avoid cash payments that could be considered support.

If the trustee is unsure whether an expense qualifies as a special or supplemental need, consulting an attorney experienced in special needs trusts is essential.

Contact Us for Special Needs Trust Guidance in Hackensack

If you have a disabled family member in Hackensack, creating a special needs trust is a critical step in protecting their future and securing the benefits they need. The Law Offices of Benjamin D. Eckman are here to help you navigate the complexities of special needs trusts and ensure your loved one’s long-term care and quality of life. Contact us today for a consultation.

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