What Are The Common Mistakes Made When Setting Up A Special Needs/ Supplemental Needs Trust?

The biggest mistake I see all the time is the lack of a proper estate plan. Sometimes it occurs because it is done by an attorney not familiar with how to plan for a loved one who is disabled and is receiving government benefits including Medicaid.

I usually here or am told that that the general lawyer failed to ask the proper questions to find out if they have a family member with disabilities or the client themselves will tell me for example that they told the general lawyer that they wanted to disinherit that certain disabled child so that they would not lose their Medicaid or disability payments or they will attempt to tell me to do the same.

The big mistake and problem I see is that that a lot of times if they explain that to the general practitioner, the general practitioner will disinherit that child, which is one way of avoiding those potential problems. But is that really what mom and dad wanted to do? Did they really want to not leave them an inheritance? More likely than not, no. So the better way to do this, or the proper way to do it if the attorney is well-versed, would be to set up a special needs trust for that child. Those are the two biggest problems. It is either the discussion is not even brought up about the child being disabled or that disabled child is not left an inheritance because of the lack of knowledge of how to properly do so with the use of special needs/supplemental needs trust.

I will then have to explain to that client how a special needs or supplemental trust in NY could provide for a disabled person and allow them to obtain an inheritance and still continue to receive their governmental benefits. Therefore, allowing that disabled child to inherit and not lose their governmental benefits.

I am using the term child as an example, but it does not necessarily have to be a child or a minor. It could be any individual that is disabled and is on disability and or Medicaid.

Get legal help and advice you need from a special needs planning attorney in New York. Our estate planning attorneys can also help you set up an estate, wills, and trusts and they can also help you set up a special needs trust or a supplemental needs trust. We also have Medicaid planning lawyers and elder law lawyers who can help you at every step of the way when you get old. We have been serving clients all over New York and understand the needs of our clients. Our offices are located in Staten Island, New York, Brooklyn, Bronx, White Plains, Garden City, Melville, NY.

For more information on Third Party Special Needs Trust, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (718) 475-9639 today.

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