Child Support Can Be Placed in a Special Needs Trust to Preserve Government Benefits

HNWEstate Planning

child support

Child support can be directed to a first party special needs trust, if one exists.  Child support cannot go into a third party special needs trust.  Child support is considered to be an asset of the person with the disability after they turn 18.  It will be counted as income for the purposes of calculating SSI.  That is problematic because a person with disabilities must maintain Medicaid eligibility in order to access adult services at state expense.

A capacitated person with a disability (meaning a competent person though suffering from a disability) can create a self-settled d4a Trust to receive his support.  If the person is not capacitated and is not under guardianship, a discussion should be scheduled on whether or not guardianship is appropriate with the parents or family member.

To discuss your NJ Special Needs Trust matter, please contact Fredrick P. Niemann, Esq. toll-free at (855) 376-5291 or email him at fniemann@hnlawfirm.com.  Please ask us about our video conferencing consultations if you are unable to come to our office.

By Fredrick P. Niemann, Esq., of Hanlon Niemann & Wright, a Freehold Township, Monmouth County NJ Special Needs Trust Attorney

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