New York City special needs trust lawyer Christine Matus of The Matus Law Group has published an article discussing the role and importance of special needs trusts in New York. The article explains how these trusts work, why they are essential for individuals with disabilities, and how they protect access to government benefits. It offers valuable insights for families seeking to secure their loved one’s financial future without jeopardizing vital support services.
A special needs trust is a legal arrangement that allows assets to be set aside for the benefit of a person with a disability without affecting their eligibility for means-tested government benefits, such as Supplemental Security Income (SSI) or Medicaid. The New York City special needs trust lawyer explains that these programs have strict income and asset limits, and even a modest inheritance or gift can result in disqualification. “A properly drafted special needs trust can provide resources for the individual while preserving essential public benefits,” Matus says.
There are several types of special needs trusts, each designed to serve different purposes. A first-party trust is funded with the beneficiary’s own assets, often from an inheritance or legal settlement. A third-party trust, on the other hand, is created and funded by someone else, typically a parent or grandparent, as part of an estate plan. The New York City special needs trust lawyer notes that third-party trusts are often preferable for long-term planning because they are not subject to government repayment rules upon the beneficiary’s death.
Another option is a pooled trust, which combines the resources of multiple beneficiaries into a single fund managed by a nonprofit organization. This can be an efficient solution for individuals who do not have a family member available to serve as trustee. Regardless of the type, all special needs trusts must be carefully structured to comply with federal and state regulations.
The article emphasizes that the trust must be used for specific supplemental expenses, not for basic support such as food or shelter, which could interfere with benefits. Instead, the trust can pay for medical care not covered by insurance, education, transportation, hobbies, travel, and other quality-of-life expenses. “The goal is to enhance the beneficiary’s life in ways public programs do not,” Matus explains.
Choosing a trustee is a critical part of setting up a special needs trust. The trustee will be responsible for managing the trust assets, handling distributions, keeping records, and ensuring that disbursements comply with benefit eligibility rules. Christine Matus advises families to select someone trustworthy and detail-oriented, and she often recommends including a professional co-trustee or legal advisor to provide guidance and oversight.
Creating a special needs trust is especially important when planning for the long-term care of a child or adult with disabilities. Without such planning, well-intentioned gifts or inheritances could have unintended consequences. “Failing to plan can cause significant disruptions to a person’s life and access to care,” says Matus. “A special needs trust allows families to give without compromising benefits.”
The article also encourages parents to coordinate their overall estate plan with the special needs trust. This may involve creating a will, naming a guardian, establishing advance directives, and ensuring that other relatives understand the importance of directing gifts through the trust rather than giving directly to the individual.
Families are encouraged to seek legal advice from an attorney experienced in both estate planning and disability law. Christine Matus and her team at The Matus Law Group provide personalized guidance tailored to the needs of each client. With a deep understanding of New York law and a compassionate approach, Matus helps families plan with confidence and clarity.
About The Matus Law Group:
The Matus Law Group is a law firm focused on estate planning, special needs planning, and elder law. Led by attorney Christine Matus, the firm helps families protect their assets and ensure the long-term care and financial security of loved ones with disabilities. The Matus Law Group is committed to providing thoughtful legal solutions that give families peace of mind.
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