Disability Planning and Special Needs Trusts in New Jersey

Experts in Disability Planning and Special Needs Trusts in New Jersey

We go out of our way to love and care for our family and friends every day. When it comes to securing the financial future of a loved one with special needs, long-term planning is essential. Making a care plan secures a stable financial future and connects the person to available governmental assistance programs.

Your loved one may be entitled to participate in a number of special needs governmental programs that are based on financial need, including Supplemental Security Income (SSI), Medicaid, and programs that provide funding for housing and other living expenses. Accepting outside income or assets from you or others may render them ineligible for these critical government benefits, and they may even be asked to reimburse the government for money already received.

An experienced New Jersey estate and elder law expert at Bratton Law Group can help set up a Special Needs Trust (SNT) to give your loved one financial protection now and in the future.

What is a Special Needs Trust?

The main purposes of a Special Needs Trust (also called a Supplemental Needs Trust) are to ensure your loved one is provided for financially and to protect their eligibility for needs-based governmental programs. The trust holds assets for the person but does not count toward the $2,000 asset limit set by programs like Medicaid and SSI. The SNT funds can then be used for the special needs and quality-of-life enhancements of the trust beneficiary that are not covered by public benefits, such as:

Recreation, leisure activities, and hobbies

Counseling, therapy, and specialized education

Necessary or desirable equipment, vehicles (such as accessible vans), and home modifications

Additional insurance, travel expenses, and companion services

Who Benefits from a Special Needs Trust?

A special needs trust can be created for anyone at any age, as long as they meet the Social Security Administration’s definition of “disabled.” A trust can be financially essential, especially when a loved one suffers from conditions like:

Physical disability

Mental illness or psychiatric issues

Memory loss or debilitating disease

Chronic Illness

If someone you love is on Medicaid or SSI or living in a group home, a Special Needs trust should be considered. These trusts protect the assets and futures of their beneficiaries without jeopardizing aid.

Understanding the Types of Special Needs Trusts in New Jersey

Special Needs Trusts are complex documents governed by strict federal and New Jersey state laws (such as N.J.A.C. 10:71-4.11(g)1). The appropriate type of trust depends on the source of the funds:

First-Party Special Needs Trusts (Medicaid Payback Trusts)

These trusts hold the assets of the disabled individual (e.g., from an inheritance, court settlement, or accumulated savings).

**Key Rule:** The beneficiary must be under age 65 when the trust is established and funded.
**Payback Provision:** Upon the death of the beneficiary, the State of New Jersey must be reimbursed from the remaining trust funds up to the total amount of Medicaid benefits paid on the beneficiary’s behalf.

Third-Party Special Needs Trusts

These trusts hold assets contributed by others (e.g., parents, grandparents, family members).

**Advantage:** These trusts do not require the Medicaid payback provision upon the beneficiary’s death, allowing remaining assets to pass to other heirs.
**Funding:** Often funded through wills, life insurance policies, or direct gifts from family members.

Contact Bratton Law Group for New Jersey Special Needs Trust Advice

Special Needs Trusts are complex documents that should be drafted by skilled, experienced lawyers to ensure they comply with New Jersey’s specific legal requirements and can stand up to scrutiny by government agencies.

An expert in New Jersey’s estate and elder law can help you:

Provide counsel on limiting tax liability.
Continuously review eligibility for governmental assistance programs.
Expertly draft the trust documentation to ensure your loved one is well-protected.
Navigate legal issues like guardianship for adult incapacitated individuals.

Our award-winning team has offices in **Haddonfield, Cherry Hill, Linwood, and Ewing, NJ**, as well as Philadelphia, PA. Helping clients in cities like Princeton, Mount Laurel, Voorhees, and Medford.

Contact us for a consultation with an experienced lawyer at Bratton Law Group. Call 856 770 2744 or fill out our convenient online form.