NY Able Program
If you want to help your loved one pay for basic living expenses without compromising government program eligibility, an ABLE account might be the right choice. ABLE stands for Achieving a Better Life Experience, and it’s a new option for New York residents. Your loved one can set up this tax-advantaged savings account as long as he or she was diagnosed with a disability before the age of 26.
Once the account is set up, friends, family members, and others can contribute. However, New York caps contributions at $14,000 a year, and the account cannot have more than $100,000 in it, or your loved one risks losing government benefits.
The disabled individual can use the funds for qualified disability expenses. This includes education, health, and housing, although that’s far from an all-inclusive list. Consult with a Long Island special needs planning lawyer from our firm to learn more about ABLE accounts.
While ABLE accounts provide significant perks, it's crucial to understand their limitations and how they fit into an overall financial plan. Given the contribution limits and significant rules governing these accounts, families should consider how they complement other tools like special needs trusts. Professional advice can ensure accounts are effectively set up and managed within the broader context of special needs planning.
Special Needs Trusts
You can help your loved one pay for supplemental needs by setting up a special needs trust. If your loved one has a large settlement, he or she can use the funds to set up the account. However, you can also set it up on his or her behalf.
Once the trust is funded, your loved one can use the money to pay for supplemental needs, such as therapy, legal expenses, and medical equipment. Additionally, your loved one can use the money to pay for enriching experiences, such as entertainment and recreation.
There aren’t limits to the amount that can be transferred into a special needs trust. However, there are strict guidelines on how the money is used. Thus, consult with a Long Island special needs planning attorney before setting up and using a special needs trust.
Special needs trusts offer families flexibility and security in financial planning, ensuring protections are in place for vulnerable loved ones. The trust can be tailored to meet specific needs, adapting as circumstances and laws change over time. Knowledgeable guidance in setting up these trusts is paramount to ensuring compliance and maximizing their benefits, making them a powerful tool in special needs planning.
Caring For A Special Needs Child: Long-Term Considerations
If your child is a minor, you are in charge of all medical and legal decisions. However, that will change when the child reaches the age of 18. At that point, your child will be a legal adult and in charge of his or her decisions. Depending on the disability, though, he or she might not have the capacity to handle the extra responsibility. If that’s the case, you can apply for guardianship.
If guardianship isn’t necessary, a health care proxy and power of attorney might be appropriate. Consult with our Long Island special needs planning lawyer to discuss your specific needs.
Parents must plan for these pivotal transitions early, ensuring there are no gaps in care or decision-making authority. Unexpected changes can be stressful, but with a strategic approach, families can navigate the transition seamlessly, maintaining their loved one’s quality of life and safeguarding financial resources. Our firm is committed to preparing families thoroughly for these milestones.
Government Programs for Special Needs in Long Island
Your loved one might be eligible for government programs to help with various expenses, including healthcare and housing. Our Long Island special needs planning lawyer can help you locate programs and assist with the application process.
Additionally, our attorney can advise you and your loved one on maintaining eligibility for the programs while accessing resources through an ABLE account, special needs trust, or another tool. If your loved one has yet to apply for these programs, you are leaving money on the table, so reach out to our firm today.
Understanding and navigating government programs can be complex. Different programs may have unique qualification criteria and application processes. Our firm provides the insights and tailored strategies needed to align these programs with other financial tools, maximizing resources available to your loved one and ensuring compliance with relevant regulations.
Benefits of Special Needs Planning on Long Island
We can assist you by:
- Preservation of Government Benefits: A primary benefit of special needs planning is that it preserves your loved one’s eligibility for government assistance. Programs like SSI and Medicaid have strict income and asset limits, and even a small inheritance could disqualify someone from receiving these vital benefits. By using a special needs trust, assets are placed in the trust rather than directly in the beneficiary’s name. This allows your loved one to retain eligibility for government programs while having access to funds for supplemental needs.
- Providing for Your Loved One’s Future: Special needs planning ensures your loved one is taken care of even after you are no longer able to provide for them. A properly structured special needs trust can cover costs that go beyond basic living expenses, ensuring that your family member enjoys a fulfilling life. From specialized therapies and medical treatments to recreational activities and educational programs, these resources can enrich your loved one’s quality of life while keeping their financial future secure.
- Protection of Assets: A special needs trust not only ensures that your loved one remains eligible for government benefits but also protects the assets you wish to leave for their care. Since the assets in the trust are not considered part of the beneficiary’s estate, they are shielded from creditors and others who may seek to claim them. This protection is vital in safeguarding your loved one’s financial stability.
- Flexibility in Planning: Special needs planning allows for flexibility in how funds are collected and disbursed. A third-party trustee, appointed by you, oversees the trust and can make decisions about how to use the funds to benefit your loved one. This setup ensures that the assets are used wisely, for the sole benefit of your family member, and can be adjusted as their needs change over time.
- Peace of Mind: For many families, the most significant benefit of special needs planning is peace of mind. Knowing that your loved one will be taken care of—both financially and in terms of their care needs—brings a great deal of relief. You won’t have to worry about them losing access to critical benefits, and you can rest assured that the resources you’ve set aside will be used to enhance their quality of life.
Through special needs planning, families can plan ahead for unforeseen circumstances, ensuring ongoing support for their loved ones. Our firm’s experience on Long Island allows us to provide continuous updates and strategies as laws and personal situations evolve. Families gain reassurance knowing they'll always have informed guidance and customizable options tailored to their ever-changing needs.
Frequently Asked Questions
What Is the Importance of a Supplemental Needs Trust?
A Supplemental Needs Trust (SNT) is an invaluable tool designed to provide financial support to individuals with disabilities without jeopardizing their eligibility for essential government benefits like Medicaid and SSI. The importance of an SNT comes from its ability to house assets on behalf of a beneficiary while maintaining their ability to access public assistance. Funds within the trust can be used for expenditures that improve the beneficiary's quality of life but are not covered by government benefits.
By implementing an SNT, families safeguard the financial gifts and inheritances intended for their loved ones while ensuring these assets are used appropriately and effectively. This method avoids direct transfers that could potentially disqualify beneficiaries from receiving government assistance. Establishing and managing an SNT requires careful planning and adherence to local and federal laws, making the guidance from a Long Island special needs planning lawyer crucial to achieving the intended outcomes without legal pitfalls.
How Does Special Needs Planning Help Parents and Guardians?
Special needs planning is a critical endeavor for parents and guardians aiming to secure a stable future for their children with disabilities. This planning process helps in structuring a solid financial and care-related framework that operates both during and beyond the parents' lifetimes. Through strategies like creating trusts, attaining appropriate insurance, and establishing guardianships, families can ensure their children are adequately cared for under various circumstances.
An essential benefit of special needs planning is the peace of mind it offers. Parents and guardians know that they are taking proactive steps toward safeguarding their child’s future. By planning ahead, they can alleviate worries related to their child's well-being and financial security, knowing that legal measures are in place to protect against future uncertainties. Engaging experienced professionals in Long Island ensures that the correct legal framework is used, optimizing the available resources effectively.
What Are Common Mistakes in Special Needs Planning?
Common mistakes in special needs planning often revolve around overlooking the intricate balance between providing for a loved one and preserving their access to government benefits. One frequent error is failing to create a formalized plan, assuming that family support or informal arrangements will suffice. Without proper legal structures, family members risk inadvertently disqualifying the beneficiary from receiving essential government aid through direct monetary gifts or inheritances.
Another common mistake is not staying updated with evolving laws. Special needs planning must adapt as legislative changes occur, impacting how trusts operate or what benefits are available. Consulting with a knowledgeable attorney in Long Island can prevent these pitfalls by ensuring that every aspect of a special needs plan aligns with current laws and best practices, safeguarding both financial and care aspects of a plan.
Why Choose a Long Island-Based Lawyer for Special Needs Planning?
Choosing a Long Island-based lawyer for special needs planning offers the advantage of localized expertise and understanding of New York's specific legal landscape. Local attorneys are intimately familiar with state-specific regulations, community resources, and the intricacies of New York’s statutes governing disability and estate law. This knowledge ensures comprehensive and compliant planning that is informed by the latest legal updates and best practices.
Additionally, working with a local attorney provides the opportunity for in-person consultations and continuous personalized support. Families can benefit from building lasting relationships with a local expert who is committed to advocating for their best interests. This proximity allows for ongoing guidance and adjustments as family needs or laws change, ensuring that your special needs plan remains relevant and effective.
What Resources Are Available for Ongoing Support?
Ongoing support for families navigating special needs planning is essential to ensure that legal frameworks remain effective and updated. There are numerous resources available to assist on Long Island, including professional legal advisory services, workshops, and support groups dedicated to educating and empowering families. Local nonprofit organizations frequently offer seminars and resources that help families stay informed about legislative changes and strategies for maximizing available benefits.
Our firm is committed to providing continuous support through regular updates, personalized consultations, and proactive communication regarding changes in laws or family circumstances. By tapping into a network of local professionals and resources, families can ensure that their loved ones are always receiving the highest level of care and financial security. This comprehensive approach is central to building a strong support system that endures through life's transitions.
Why Choose Schneider, Garrastegui, & Fedele, PLLC?
- Hyper-focused on Your Needs – While some firms dabble in numerous practice areas, we focus on elder law and real estate. Our limited scope of practice allows us to stay up-to-date and provide hyper-focused, client-centric legal services.
- Highly Rated – Our firm has accumulated numerous 5-star reviews on Google, Facebook, Yelp, and Avvo.
- Two Locations to Serve You – Visit our fully staffed Class A office space in Long Island or make an appointment at our satellite office in Hauppauge, NY.
- Small Firm with Big Firm Assets – As a small firm, you can expect hands-on, customized service with us. At the same time, our assets are comparable to a much larger firm, so we have the resources to help clients of varying and even challenging needs.
- Bilingual Support – With both English and Spanish-speaking staff and attorneys, you’ll feel at home at our firm.
Contact SGF Law today at (631) 519-9831 to get started with our special needs planning attorney in Long Island.
