• Home
  • Who We Are
    • About Our Firm
    • Meet Our Team
    • News and Events
  • Estate Planning
    • Asset & Business Planning
    • Elder Law & Medicaid Planning
    • Estate Planning Services
    • Family-Owned Businesses & Farms
    • Legacy Planning Services
    • LGBT Estate Planning
    • Pet Planning
    • Special Needs Planning
    • Trust Administration & Probate
    • Young Families
    • Estate and Gift Tax Figures
  • Elder Law
    • Coping With Alzheimer’s
    • Emergency Medicaid & Nursing Home Planning
    • Guardianship & Conservatorship
    • Hospice Care
    • Medicaid Planning
    • Veteran’s Benefits
  • Resources
    • FREE Estate Planning Worksheet
    • FREE Workshops
    • Definitions
    • Elder Law Resources
      • Bath Elder Law
      • Pittsford Elder Law
      • Rochester Elder Law
    • Frequently Asked Questions
      • Elder Law FAQs
      • Estate Planning FAQs
      • Medicaid FAQs
      • Probate FAQs
      • Trusts FAQs
      • Trust Administration FAQs
      • Veterans’ Benefits FAQs
      • Is Your Estate Plan Outdated?
      • FAQs for Families Without an Estate Plan
      • LGBT Estate Planning
    • Family Farm Succession Planning
    • Medicaid Resources
    • Presentations
    • Probate Resources
      • Bath Probate
      • Pittsford Probate
      • Probate Checklist
      • Rochester Probate
    • Professional Articles
    • Review of Our Services
    • Reports
      • Estate Planning Reports
        • Advanced Estate Planning
        • Basic Estate Planning
        • Estate Planning for Niches
        • Trust Administration
    • Top Estate Planning Techniques
    • Newsletters
  • Communities We Serve
    • Finger Lakes Region
      • Canandaigua
    • Geneseo
    • Livingston County
    • Ontario County
      • Naples
    • Mendon
    • Monroe County
      • Pittsford
      • Rochester
    • Steuben County
      • Bath
      • Corning
    • Wayne County
    • Yates County
  • BLOG
  • Contact Us

WAEstate

Law Office of Michael Robinson, P.C.

Connect With Us Today (585) 374-5210

Attend a Free Workshop

What Is a First Party Special Needs Trust?

April 1, 2016Special Needs Planning

What Is a First Party Special Needs Trust?A first party special needs trust is a type of legal structure that can be used to benefit a person with a disability who is enrolled in government benefit programs. Many people with disabilities rely on Medicaid as a source of health insurance, and Supplemental Security Income can provide the basic necessities.

Since these programs are intended for people with financial need, you have to be able to prove that you have limited resources in your own name if you want to qualify. People with significant resources cannot obtain eligibility.

In many cases, people with disabilities do not have their own resources, because they cannot earn much income. As a result, they can demonstrate financial need. However, in other instances, someone with a disability may come into some money. The individual could receive an inheritance or insurance policy proceeds, and some people with disabilities receive personal injury settlements.

Under these circumstances, a legal guardian, a parent or a grandparent could use the funds to establish a first party or self-settled special needs trust for the benefit of the person with special needs. When this type of trust has been established, the trustee can use assets in the trust to satisfy the supplemental needs of the beneficiary without interrupting benefit eligibility.

What are supplemental needs? The government benefits will cover some needs, but not everything. Supplemental needs would be needs that are not being met by the benefits. As long as the expenditures are within the rules, benefit eligibility would not be impacted.

Though this is a positive arrangement, there is one drawback. After the death of the beneficiary, the Medicaid program would seek reimbursement from his or her estate.

If a special needs trust is created with funding that is coming from someone other than the beneficiary, it is considered to be a third party special needs trust. The same situation would exist with regard to the ability of the trustee to use the trust’s assets to satisfy the supplemental needs of the beneficiary.

However, Medicaid would not seek reimbursement from the estate of the beneficiary after his or her passing.

Special Needs Planning Report

You should act in a fully informed manner if you have a person with special needs in your family. Benefit eligibility can be essential, so you have to take all the right steps.

We have prepared an in-depth report that puts the subject of special needs planning under the microscope. This report will provide you with a great deal of valuable information about these complex benefit programs, and it is being offered free of charge at the present time.

To get your copy of the report, visit this page and follow the simple instructions: Rochester NY Special Needs Planning.

  • About
  • Latest Posts
Michael Robinson, Estate Planning Attorney

Michael Robinson, Estate Planning Attorney

Clients notice Michael Robinson’s unique approach to his estate planning practice the minute they walk through his office doors.
Michael Robinson, Estate Planning Attorney

Latest posts by Michael Robinson, Estate Planning Attorney (see all)

  • A Look at Common Estate Planning Documents - February 14, 2019
  • Tax Tips after New Year - February 13, 2019
  • Estate Planning Is an Ongoing Process - February 12, 2019

Other Articles You May Find Useful

Estate Planning Services in Rochester, New York and the Finger Lakes Area
Special Needs Planning Can Preserve Benefit Eligibility
Estate Planning Services in Rochester, New York and the Finger Lakes Area
What Is the Difference Between SSI and SSDI?
Estate Planning Services in Rochester, New York and the Finger Lakes Area
Can I Protect My Injury Settlement With a Special Needs Trust?
Estate Planning Services in Rochester, New York and the Finger Lakes Area
Special Needs Planning in Rochester NY: Key Mistakes to Avoid
Estate Planning Services in Rochester, New York and the Finger Lakes Area
Special Needs Planning: Part III of III
Estate Planning Services in Rochester, New York and the Finger Lakes Area
Special Needs Planning: Part II of III

Free Estate Planning Worksheet

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.
  • This field is for validation purposes and should be left unchanged.

Follow Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube

News & Events

Upcoming Workshops

Several educational workshops coming up around the Finger Lakes you don’t want to miss.   About Latest Posts Michael Robinson, Estate Planning AttorneyClients notice Michael Robinson’s unique approach to his estate planning practice the minute they walk through his office doors. Latest posts by Michael Robinson, Estate Planning Attorney (see... Read more →

Testimonials

A pleasure as always dealing with the entire staff. Always willing to explain the answers to our questions.Joseph and Julie Ann M. 
Always Helpful When Working With The Firm
From the first visit I was welcomed (like family). The office & girls have all their ducks in order! Very friendly! Mr. Robinson explained everything in detail. 100% satisfied. Will pass the word on. Great Law Firm. Thank you so much.
Geraldine P.
Establishing a Family Wealth Trust through the Law Office Of Michael Robinson P.C. has been a positive experience, the staff is congenial, patient, thorough, professional and knowledgeable. We certainly are comfortable and confident with our decision.
Beverly L.
Our overall experience was one of thoughtfulness, clarity and comprehensiveness on the part of Michael Robinson, his staff and associates. We attended Michael’s seminar on legacy wealth, and found him to be clear and well-spoken. He touched on all aspects of Estate Planning in which we were interested. Our first of two visits to his office was timely and helpful enough for us to consider develop…
Sharon T.
Over the years we have been to many programs regarding Estate Planning. We were most impressed with Mr. Robinson’s presentation – both in subject matter and explanation in an understandable manner. We have put our “trust” in his competent hands. We were not aware of the complexity and the volume of paperwork generated for this undertaking. We found his staff to be most capable and client orien…
F.T. & L.T.

Blog Subscribe

  • This field is for validation purposes and should be left unchanged.

Bath Office

10 West Pulteney Square
Suite 103,
Bath, NY 14810
Phone: (585) 374-5210
Fax: (585) 485-0394

See Larger Map Get Directions

Pittsford Office

1163 Pittsford-Victor Road, Suite 120 (Powder Mill Office Park)
Pittsford, NY 14534-3817
Phone: (585) 374-5210
Fax: (585) 485-0394

See Larger Map Get Directions

Map

mrobinson_sidbr_map
  • Advantages of Working With Our Firm
  • About The American Academy
  • Disclaimer
  • Privacy Policy
  • Sitemap
  • Contact Us

Connect with Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube
footer-logo

The Law Office of Michael Robinson, P.C.

Attorney Advertisement


© 2019 American Academy of Estate Planning Attorneys, Inc.