Special Needs Trust Lawyer in Gloucester County

When you want to set money aside for a loved one with a disability, you shouldn’t have to choose between providing for that person and protecting benefits they rely on. A special needs trust can hold money and other assets for a person with a disability while helping preserve eligibility for certain needs-based benefits, including Medicaid and SSI.

A special needs trust can pay for many expenses that improve a beneficiary’s quality of life while supplementing, rather than replacing, government benefits. However, the trust must be structured and managed carefully. A mistake in how the trust is created or how money is distributed can affect benefits.

If you’re planning for a loved one with a disability, contact Puff Sierzega & MacFeeters Law Offices for legal guidance. Our Gloucester County special needs trusts attorneys can help determine which type of trust fits your situation, prepare it to meet New Jersey requirements, and coordinate it with your family’s broader estate plan.

What Can a Special Needs Trust Pay For?

A special needs trust generally supplements, rather than replaces, government benefits. Depending on the trust terms and applicable benefit rules, trust funds may help pay for:

• Transportation
• Education and training
• Recreation and entertainment
• Electronics and personal items
• Travel
• Uncovered medical or dental expenses
• Therapy and other services
• Other expenses that improve the beneficiary’s quality of life

New Jersey’s Medicaid regulations require a qualifying special needs trust to be established for the beneficiary’s sole benefit. N.J.A.C. 10:71-4.11(g)1 addresses how these trusts are treated for Medicaid eligibility purposes. New Jersey also requires annual accountings for qualifying special needs trusts, which must be provided to the appropriate Medicaid authorities.

How the trustee pays an expense can affect the beneficiary’s SSI and other benefits. For example, cash distributed directly to the beneficiary is generally treated differently from a trust payment made directly to a third-party provider.

What Types of Special Needs Trusts Are Available?

The right trust depends largely on who funds it.

First-Party Special Needs Trust

A first-party special needs trust holds assets belonging to the person with the disability, such as an inheritance, personal savings, or certain settlement proceeds. Under 42 U.S.C. § 1396p(d)(4)(A), qualifying trusts for disabled individuals under 65 can receive special treatment under Medicaid’s resource rules. However, the trust must satisfy specific federal and New Jersey requirements, including a Medicaid payback provision.

Third-Party Special Needs Trust

A third-party trust is funded with someone else’s money, such as assets provided by a parent, grandparent, or other relative. Because the beneficiary didn’t own the assets before they went into the trust, the rules differ from those governing a first-party trust. A third-party trust can generally designate who receives remaining trust assets after the beneficiary’s death because the assets didn’t originally belong to the beneficiary.

Pooled Special Needs Trust

A nonprofit organization manages a pooled trust for multiple beneficiaries. Each beneficiary has their own account, but the funds can be pooled for investment and management.

Our Special Needs Trust Attorneys in Gloucester County Can Handle Your Case

Creating the trust is only part of the process. Our Gloucester County special needs trusts lawyers can:

• Determine which type of trust fits the source of the assets.
• Draft provisions designed to satisfy New Jersey and federal requirements.
• Coordinate the trust with a will and other estate-planning documents.
• Address SSI and Medicaid eligibility concerns.
• Help select and guide the trustee.
• Review how a settlement, inheritance, or gift should be handled.
• Help the family understand the trust’s administration requirements.

This planning can be especially crucial when a beneficiary is about to receive money that could otherwise affect needs-based benefits.

The Right Trust Can Protect Benefits Without Putting Your Loved One’s Needs on Hold

A special needs trust isn’t simply another account for holding money. Its structure, funding, distributions, and administration can all affect the beneficiary and the benefits they receive. If you’re creating a plan for a loved one with a disability, talk to our special needs trusts attorneys about your specific situation. Request your confidential consultation by contacting Puff Sierzega & MacFeeters Law Offices online or at 856-845-0011.