Special Needs Planning in Long Island
Special Needs Planning Backed by Service Since 1935
Special needs planning coordinates financial support for a person with a disability while accounting for means-tested government benefits and long-term family goals. Blumberg, Cherkoss, Fitz Gibbons, Blumberg regularly drafts special needs trusts through our established Elder Law, Medicaid Planning & Wills, Trusts and Estates practice.
We help Long Island families integrate these trusts with wills, powers of attorney, asset-protection strategies, and plans for probate and estate administration. We have practiced in Nassau and Suffolk County courts for decades. Each plan reflects the beneficiary, available resources, family circumstances, and decisions that may arise over time.
Discuss your family’s special needs planning concerns during a free, no-obligation consultation. Call (631) 449-7699 to speak with our firm.
How Supplemental Needs Trusts Protect Benefit Eligibility
A supplemental needs trust, also called a special needs trust, holds and manages assets for a beneficiary with a disability. When properly drafted, funded, and administered, it can provide financial support without affecting eligibility for Supplemental Security Income or Medicaid.
New York recognizes supplemental needs trusts under Estates, Powers and Trusts Law Section 7-1.12. A qualifying trust must contain the provisions required for its assets to be excluded from government-benefit eligibility determinations. Both the trust document and the handling of distributions must comply with these technical requirements.
These trusts supplement public benefits rather than replace them. Trust funds may cover needs and quality-of-life expenses that government programs don’t fully address, but payments must be structured carefully. Direct distributions to the beneficiary or payments for certain expenses can affect Supplemental Security Income or Medicaid eligibility.
Types of Special Needs Trusts for Long Island Families
The source of the assets and the treatment of funds remaining after the beneficiary’s death help determine the appropriate trust structure. We consider the ownership of the funds, the beneficiary’s benefit programs, and the family’s broader estate plan.
Self-Settled Supplemental Needs Trusts
A self-settled trust, also known as a first-party supplemental needs trust, is funded with assets belonging to the beneficiary. Those assets might come from an inheritance, settlement, or other property held in the beneficiary’s name. When the beneficiary dies, Medicaid must be repaid from funds remaining in the trust before other distributions are made.
Third-Party Supplemental Needs Trusts
A third-party trust is funded with assets belonging to a parent, relative, friend, or another person rather than the beneficiary. It may be created during that person’s lifetime or incorporated into an estate plan to receive assets later. Funds remaining in a properly structured third-party trust aren’t subject to Medicaid payback and may pass according to the trust’s terms.
Pooled Supplemental Needs Trusts
A pooled trust is an irrevocable supplemental needs trust administered by a nonprofit organization, with individual beneficiary accounts maintained as part of a larger pool. It can allow eligible residents with disabilities to spend down excess funds while maintaining Medicaid or Supplemental Security Income eligibility. Participation terms, administrative requirements, and the handling of funds at death require careful review before the trust is established.
Our Special Needs Planning Process
Our process begins with a consultation focused on the beneficiary’s circumstances, current benefits, family resources, and long-term objectives. We also examine how existing wills, trusts, beneficiary designations, and decision-making documents work together so the special needs trust isn’t treated as an isolated document.
Our planning process includes:
- Initial consultation: We discuss the family’s priorities, relevant assets, benefit considerations, and existing planning documents.
- Customized plan development: We prepare a proposed structure based on the client’s needs and the intended source of trust funding.
- Review and revision: We explain the proposed documents, address questions, and revise the plan where appropriate.
- Plan implementation: We complete the documents and guide the steps required to put the plan into effect.
- Periodic review: We recommend revisiting the plan every few years or after a major life event.
Marriage, divorce, a death in the family, a substantial change in assets, or a change in the beneficiary’s circumstances may affect an existing plan. Changes in law or benefit rules may also require updates to keep the documents aligned with the family’s objectives and current legal requirements.
Planning for Adulthood, Guardianship & ABLE Accounts
Transition planning becomes especially important as a child with a disability approaches adulthood. It may address continued benefit eligibility, legal decision-making authority, housing, and financial support. Although these issues are connected, each requires a separate evaluation.
When an adult can’t manage some or all personal or financial affairs, guardianship planning under New York law may involve an Article 17-A proceeding in Surrogate’s Court or an Article 81 proceeding in Supreme Court. These proceedings apply different legal standards and provide different forms of authority. The need for guardianship is separate from deciding how assets should be held or distributed.
ABLE accounts can complement a broader special needs plan by allowing an eligible person with a disability to hold funds for qualified disability expenses under applicable program rules. An ABLE account doesn’t replace a supplemental needs trust, a will, or documents addressing legal authority. Before transferring assets, families should evaluate how the account, trust funding, beneficiary designations, and public benefits interact.
Build a Plan Around Your Family’s Priorities
A coordinated plan can establish who manages trust property, how assets may be used, and how family members intend to provide support. We can identify the information needed to evaluate a special needs trust and its place within your family’s broader plans.
Call (631) 449-7699 to arrange a free consultation with Blumberg, Cherkoss, Fitz Gibbons, Blumberg and discuss special needs planning for your family.