SNTs solve this problem by providing that the money in the trust is not to be used for services already being provided by the government but may only be used for supplemental services ad care, above and beyond what government assistance provides. There are two kinds of SNTs: first party - funded with the disabled person's own money -- and third party - funded with the money of another individual, such as a parent or other relative. Third party SNTs are less heavily regulated and of greater benefit to the family, as any money left over at the death of the disabled beneficiary does not need to be paid to the government, but rather passes instead to the next-named beneficiary. First party SNTs have more requirements -- they must be created and funded before the beneficiary turns 65, they may only be created by a parent or grandparent of the disabled person or by a court (unless using a pooled trust -- which will have to be the subject of another blog). Also, in a first party SNT, anything remaining at the death of the beneficiary must be first used to repay the government the cost of expenditures made on behalf of the disabled person.
For help in creating an SNT for yourself or a loved one, please contact Laidlaw Firm at 914-767-0646; mlaidlaw@laidlawfirm.com; http://www.laidlawfirm.com/
The information provided in this web site is attorney advertising. It is for informational use only. Do not construe this as legal advice. You should not act or rely on any information at this website without seeking the advice of an attorney.
