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Tiboni & Tiboni, LLP


We concentrate on Estate Planning & Administration,
Elder Law, Guardianship,
Special Needs and
Financial Legal Advice
to help you plan, preserve
and protect the important
things in your life.  Learn more about us...

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Special Needs
Special Needs
how Can I Insure That My Child With Special Needs is Protected?

Special Needs Trusts and Supplemental Benefits Trusts protect assets that your disabled child may receive, either through a Court Settlement, an Inheritance or a Gift.

If you have a child with a significant lifelong disability, and that child receives assets through an inheritance or personal injury settlement, he or she will become ineligible for any governmental program or services that use an economic means test.  In simple terms, programs that apply an economic means test require that your child not have assets over a certain limit.  Therefore, clearly those assets would disqualify the disabled individual by putting them over the monetary limit.

There are two types of Special Needs Trusts that we use to help protect your child’s assets:

The first type of Trust is called a Special Needs Trust.  This Trust covers assets owned by the disabled child.  There are two statutes that govern the creation of such trusts: 42 U.S.C.A. §1396p(d)(4)(A) and 42 U.S.C.A. § 1382b(e)(5).  Basically, these statutes provide that 1) such trusts must be created by a parent, grandparent, guardian or court, 2) must specify that upon the beneficiary’s death, the government will be repaid, at least for the medical assistance (Medicaid) provided, and 3) must be irrevocable.  State regulations add the requirement of an annual report and notice of an expenditure in excess of $5,000. N.J.A.C. 10:71-4.11(g).

The second type of Trust is a Supplemental Needs Trust.  This Trust is used when the assets contributed to the trust belong to a third party, such as a parent. These trusts do not require repayment to the government for services rendered when the beneficiary dies.

The requirements and rules governing such Trusts are extremely complicated.  If, however, you are interested in learning more about their use and benefits, please do not hesitate to contact us and we will be more than happy to review their benefits during a consultation.
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Tiboni & Tiboni, LLP
166 South Street
New Providence, NJ  07974
Ph: 908-286-1136
Fax: 908-286-1605

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