• 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      • Is Your Estate Plan Outdated?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

Special Needs Planning Can Preserve Benefit Eligibility

October 23, 2018Special Needs Planning

special needs planningWhen you are planning your estate, you should discuss everything in detail with an estate planning attorney, because you can make mistakes that have unintended negative consequences. Your financial situation and the nature of your intentions will definitely be part of the equation. It is also important to consider the life situation of the people that are on your inheritance list.

With this in mind, we will look at the value of special needs planning in this blog post.

People With Disabilities

Many individuals with special needs rely on government benefits that are only available to people with very limited financial resources. One of them is the Medicaid program. This is a source of health care insurance, and clearly, people with disabilities are going to need ongoing medical treatment throughout their lives.

There is a low asset limit that governs Medicaid eligibility. In most states, it is just $2000, but in  New York it is $15,150 at the time of this writing in 2018. It should be noted that some property is not counted, including a home if the Medicaid applicant is residing in it. However, there is an equity limit that stands at $858,000 in the Empire State at the present time.

Another need-based government benefit that many people with disabilities qualify for is Supplemental Security Income. The name is self-explanatory; this program provides a steady but modest source of income for people with challenges that do not have any earning power.

Special Needs Trusts

What can you do if you want to include someone that is enrolled in these programs in your estate plan? There is a widely embraced solution in the form of a supplemental needs trust. These vehicles are alternately referred to as special needs trusts.

If you were to establish a special needs trust for the benefit of a loved one, you would name a trustee to act as the trust administrator. Of course, the beneficiary would be the person with special needs that you want to make more comfortable.

The government benefits are not necessarily going to satisfy all of the needs of the recipient. These unmet needs are considered to be supplemental needs, and this is why the trusts that we are looking at are called supplemental needs trusts.

The beneficiary would not have direct access to assets that are contained within the trust. However, the trustee would be able to use the resources to satisfy unmet needs that are approved by the programs.

These would include vacations, transportation costs, computers and other electronic equipment, educational expenses, exercise equipment, musical instruments, dental and medical care that is not covered by Medicaid, and many other goods and services.

After the beneficiary dies, Medicaid is required to seek reimbursement from any assets that are contained within the decedent’s estate. When a third-party special needs trust has been established, the remaining assets could not be touched by Medicaid. A successor trustee that you name in the trust declaration would assume ownership of the remainder.

This being stated, sometimes a person with a disability will come into money after being enrolled in these programs. For example, they may receive a personal injury settlement or judgment. Under these circumstances, a parent, a grandparent, a court, or a legal guardian could fund a supplemental needs trust with these assets. This would be a self-settled or first party special needs trust.

When this type of trust has been established, Medicaid can attach funds that remain in it after the passing of the benefit recipient.

Attend a Free Estate Planning Workshop!

We have looked at one very specific estate planning topics here, and there are many other blog posts that you can explore to build on your knowledge. On top of the existing content, we are always adding new posts, so we encourage you to visit often. There are additional resources on this website as well, so you may want to look around and see what is available to you.

Written information is great, but there is no substitute for an opportunity to interact with an estate planning attorney in person. We are holding a number of workshops over the coming weeks, and you can learn a lot if you attend the session that fits into your schedule. They are free, but we do ask that you register in advance so that we can reserve your seat. To get all the details, click the following link: Free Estate Planning Workshops.

  • 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)

  • Important Estate Planning Questions Answered - February 19, 2019
  • A Look at Common Estate Planning Documents - February 14, 2019
  • Tax Tips after New Year - February 13, 2019

Other Articles You May Find Useful

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
What Is a First Party 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

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.
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.
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.
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
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.

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.