Wills and Trusts Lawyer Greenburgh

When it comes to securing your family’s future and protecting your assets, having a wills and trusts lawyer by your side is essential. At Ledwidge & Associates in Greenburgh, we understand that estate planning can feel overwhelming, which is why we’re dedicated to guiding you through every step with clarity and compassion. Whether you need help drafting a will or setting up a trust, our team is here to design solutions that fit your unique needs. Reach out today at (929) 492-2814 to schedule your free consultation and take the first step toward peace of mind.

Understanding Special Needs Trusts and How They Protect Loved Ones with Disabilities

Planning for the future of a loved one with a disability requires careful thought and specific legal tools. One of the most effective ways to provide financial security without jeopardizing government benefits is through a special needs trust. If you live in Greenburgh and are looking for a way to protect the interests of a family member with disabilities, understanding how a special needs trust works is essential.

What is a Special Needs Trust?

A special needs trust is a legal arrangement designed to hold and manage assets for a person with a disability. The primary goal is to supplement, not replace, the benefits the individual receives from public assistance programs such as Medicaid or Supplemental Security Income (SSI). These programs often have strict rules about asset limits, and directly giving money to a person with a disability could risk their eligibility.

The trust is established by a third party—often a parent, grandparent, or guardian—and managed by a trustee. This trustee controls the funds and ensures that they are used for the benefit of the person with disabilities without interfering with their government aid.

Why You Need a Special Needs Trust

Many families assume that providing money or property directly to a loved one with disabilities is the best way to help. Unfortunately, this can create unintended problems. Government programs that offer vital support frequently disqualify recipients if they own assets above a certain threshold. This can leave the individual without access to necessary healthcare, housing assistance, or daily living support.

A special needs trust helps prevent this by holding assets separately. The funds in the trust can pay for things like medical expenses not covered by Medicaid, education, transportation, therapy, and recreational activities. Essentially, it offers a financial safety net that improves quality of life without risking eligibility for essential public benefits.

Types of Special Needs Trusts Available in New York

There are a few types of special needs trusts that you should be aware of:

• First-party special needs trusts: Funded with assets that belong to the individual with disabilities. These trusts are often set up using money from a personal injury settlement, inheritance, or savings. They must include a “payback” provision that requires any remaining funds to be returned to the state upon the beneficiary’s death to cover Medicaid expenses.

• Third-party special needs trusts: Funded with assets belonging to someone other than the person with disabilities, usually a parent or grandparent. These trusts do not have a payback requirement and can continue to benefit other family members if the individual passes away.

• Pooled trusts: Managed by nonprofit organizations that pool funds from multiple beneficiaries. These trusts can be useful if there isn’t enough money to justify setting up an individual trust. They also typically have payback provisions.

Who Should Consider a Special Needs Trust?

Families with a member who has a physical, intellectual, or developmental disability should seriously consider a special needs trust. This planning tool is particularly important if you expect to leave an inheritance or settlement to your loved one. Without a special needs trust, your beneficiary could lose their access to vital government programs.

Parents and guardians often establish special needs trusts as part of a comprehensive estate plan. This approach not only protects assets but also gives peace of mind knowing that the individual’s future needs will be met, even after the primary caregivers are no longer able to provide support.

How a Special Needs Trust Works in Practice

Once the trust is established, the trustee manages the funds according to the terms set out in the trust document. The trustee must be careful to use the money only for permitted expenses that do not count as income or assets for government benefit purposes. This might include things like:

• Medical and dental care not covered by insurance

• Therapy or counseling

• Personal care attendants

• Educational and vocational training

• Travel and entertainment

• Durable medical equipment

The trustee must keep detailed records and maintain transparency to avoid jeopardizing the beneficiary’s benefits.

Choosing the Right Trustee

The trustee plays a critical role in the success of a special needs trust. This person or institution should have a solid understanding of the beneficiary’s needs, the rules governing government benefits, and financial management skills. Many families choose a trusted family member, a professional trustee, or an attorney experienced in special needs planning.

At Ledwidge & Associates in Greenburgh, we help clients select and set up trustees who will responsibly manage these trusts, ensuring that the beneficiary’s needs are prioritized and protected.

Establishing a Special Needs Trust in Greenburgh

Setting up a special needs trust requires careful drafting and compliance with both federal and state laws. It’s not simply about creating a trust agreement—it involves understanding eligibility rules, trust funding, and administration.

An estate planning lawyer in Greenburgh can guide you through this process. They will work with you to tailor a trust that fits your family’s unique situation and helps avoid common pitfalls that could endanger government benefits.

Common Misconceptions About Special Needs Trusts

There are several misunderstandings about special needs trusts that can cause confusion:

• It’s only for people with large inheritances: Even modest assets can be protected with a special needs trust. It’s not about how much money there is, but how to manage it effectively.

• Once the trust is set up, no changes can be made: Many trusts include provisions for amendments, allowing them to adapt as the beneficiary’s circumstances change.

• A special needs trust replaces government benefits: The trust is designed to supplement, not replace, public assistance.

Planning Ahead Matters

The best time to create a special needs trust is sooner rather than later. Waiting until a crisis occurs can complicate matters and limit your options. Planning ahead gives you control over how resources are used and ensures your loved one’s care remains uninterrupted.

Protect What Matters Most: Your Wills and Trusts Lawyer in Greenburgh

Choosing the right wills and trusts lawyer is one of the most important decisions you can make to protect your legacy and provide for your loved ones. At Ledwidge & Associates, we are committed to delivering estate planning services that give you confidence and control over your future. Don’t leave these critical matters to chance—call us today at (929) 492-2814 to schedule your free consultation and start building a plan that safeguards what matters most.