Creating And Funding A Special Needs Trust
When a loved one needs extra or long-term care due to a long-term physical or mental disability, a special needs trust is an estate planning tool that can make sure a loved one is taken care of. Our long-term care and estate planning lawyers at Enea, Scanlan & Sirignano, LLP, in White Plains regularly assist clients throughout south-central New York prepare strategic estate plans to ensure that their financial resources go where their clients need and want them to go, while minimizing the estate tax consequences.
First-Party Special Needs Trusts
A special needs trust has a grantor and a beneficiary. A first-party trust is funded by the beneficiary themselves. In other words, the grantor of the special needs trust is also the beneficiary of the trust. A first-party trust is used to protect and preserve a beneficiary’s assets and financial resources for themselves, while still allowing them to qualify for Medicaid assistance and long-term care support. A first-party trust must include a Medicaid repayment provision, stating that Medicaid will be repaid before any remaining assets are distributed to heirs.
Third-Party Special Needs Trusts
A third-party special needs trust is funded by a grantor who is not the beneficiary. In a third-party special needs trust, the grantor wants to make sure that the beneficiary’s long-term care needs are met, should anything happen to the grantor. A third-party special needs trust can be set up as a revocable or irrevocable trust. A special needs trust can be funded with cash, property, investments, retirement funds or life insurance funds. An experienced wealth management attorney can help you determine the best way to fund a special needs trust based on your specific financial portfolio.
Schedule A Consultation With A Long-Term Care Attorney
Our attorneys are available for consultations by appointment. You can schedule an appointment with one of our attorneys by sending an email through our online form or by calling our office at 914-269-2367.
