Administering a Special Needs Trusts in New Jersey
How often have we heard “It’s all in the details.”? A properly drafted special needs trust when administered correctly will not be counted as an available asset, and trust distributions to beneficiaries will not be counted as income. Public benefits will be safeguarded and preserved. To receive this special exception, however, the trust must meet certain New Jersey statutory requirements and pass review by a state agency and possibly the Social Security Administration who are responsible for administering the trust beneficiary’s public assistance program.
The Administration of a Special Needs Trust
The Importance of Proper Administration of a SNT in New Jersey
While special needs trusts in New Jersey are conceptually simple, the administration of a special needs trust can become very, very complex. Administration can become complex because the rules that regulate government assistance programs are complex and change with time. Every special needs trust must be administered to the specific rules of the trust beneficiary’s individual government assistance program.
Flexibility of Special Needs Trust Administration
The “special needs” of a person that a trust can provide will always be determined by the technical requirements of his/her individual government assistance program. (Medicaid vs. Section 8 vs. DDD vs. SSI vs. Pharmaceutical Assistance, etc.)
While a particular trust distribution may not violate one individual’s program requirements, it may cause serious issues for a program with different benefits and requirements. Despite this potential complexity, a properly drafted and administered special needs trust can be flexible and adapted to meet program requirements even as those requirements may change over time.
Let us help you navigate the maze of special needs trust administration.
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Ask for me to personally discuss your New Jersey Special Needs Trust situation toll-free at (855) 376-5291 or e-mail me at firstname.lastname@example.org.