New Jersey special needs trust lawyer Christine Matus (https://matuslaw.com/what-is-a-supplemental-needs-trust-in-new-jersey/), of The Matus Law Group, recently shed light on Supplemental Needs Trusts (SNTs) in an informative article. This essential legal tool offers families a way to help ensure the financial security of loved ones with disabilities without jeopardizing their access to vital government benefits.
Supplemental Needs Trusts, also known as Special Needs Trusts in New Jersey, are designed to support individuals with disabilities by supplementing their income while maintaining eligibility for Medicaid and Supplemental Security Income (SSI). New Jersey special needs trust lawyer Christine Matus emphasizes the importance of these trusts for families seeking to enhance the quality of life of their loved ones.
“A Supplemental Needs Trust serves as a financial bridge that extends beyond the limitations of public assistance, allowing additional care and resources to be available without compromising the beneficiary’s eligibility for programs such as Medicaid or Supplemental Security Income,” the New Jersey special needs trust lawyer explained in the article.
Christine Matus elaborates on the mechanics of these trusts, which are specifically created for disabled individuals under the age of 65. Parents, grandparents, legal guardians, or the court may establish an SNT to provide supplemental support. The trust can pay for various quality-of-life expenses such as medical care not covered by Medicaid, vocational training, home modifications for accessibility, and recreational activities.
Trustees play a pivotal role in managing the trust. They are responsible for maintaining compliance with state and federal laws while avoiding disbursements that could impact the beneficiary’s benefits. Matus highlights that while trustees have significant discretion, they must adhere to strict guidelines and maintain detailed records.
However, there are certain restrictions. Direct cash payments to the beneficiary, or funds allocated for basic needs such as food and rent, can affect SSI benefits or Medicaid eligibility. Trustees must exercise caution to avoid disqualifying the beneficiary from these programs.
Christine Matus also outlines potential challenges associated with Supplemental Needs Trusts. While they provide peace of mind and financial stability, there are costs and limitations. Control of the trust lies with the trustee, not the beneficiary, which can reduce the latter’s independence. Additionally, Medicaid must be reimbursed from the trust after the beneficiary’s death, often depleting its funds. Despite these drawbacks, Matus asserts that the benefits of an SNT often outweigh its limitations for families seeking to safeguard the future of a loved one with disabilities.
A critical decision for families is selecting a trustee to manage the Supplemental Needs Trust. Christine Matus advises choosing someone who is trustworthy, financially savvy, and capable of meeting legal requirements. In certain cases, professional trustees, such as lawyers or financial institutions, may be the best option, especially for larger trusts.
Matus underscores the importance of forward planning. Contributions to the trust must be completed before the beneficiary turns 65, as post-65 transfers are prohibited under New Jersey law. This makes it essential for families to consult with a knowledgeable special needs trust lawyer to help ensure compliance and effective trust management.
Supplemental Needs Trusts are a vital tool for families supporting a loved one with disabilities. These trusts preserve access to government benefits and provide financial support, enabling beneficiaries to receive the care and resources they need. Christine Matus encourages families to explore this option, stating, “Knowing that your disabled loved one will be taken care of regardless of what happens to you is, in itself, enough reason to seriously consider creating an SNT.”
Families interested in learning more about Supplemental Needs Trusts and their potential benefits are encouraged to seek professional guidance.
About The Matus Law Group:
The Matus Law Group is dedicated to helping families manage the complex aspects of estate planning and special needs trusts in New Jersey. Led by Christine Matus, the firm can provide tailored legal solutions designed to meet the unique circumstances of each family. Their compassionate approach allows clients to feel confident about the future of their loved ones.
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