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.
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 lawyer before setting up and using a special needs trust.
Caring For A Special Needs Child
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.
Government Programs
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.
What are the Benefits of Special Needs Planning?
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.
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 to get started with our special needs planning attorney in Long Island.
