Contact an Experienced NJ Special Needs Trust Attorney Today.
Millions of Americans have disabled family members. The cause may be a serious personal injury accident, Down's Syndrome, schizophrenia, cerebral palsy, autism, multiple sclerosis or countless other physical or mental illnesses.
Even if you don't have a disabled family member, you know many individuals who do. Mental and physical problems do not discriminate against particular racial or socio-economic groups.
If you have a child (young or older), in particular, who is disabled, or if you know someone who does, you simply must know about Special Needs Trusts. These trusts are designed to hold assets for the benefit of an individual who is receiving public benefits and to help that person without causing disqualification.
If the person is receiving Supplemental Security Income (SSI), Social Security Disability (SSD) or some form of state aid, they will remain eligible for these benefits with a properly drafted Special Needs Trust. If they are in subsidized housing, they will be able to live there.
Can’t travel to our office?
Located out of state?
No problem. You can still speak to Fredrick P. Niemann
face-to-face from the convenience of your home or office.
Rutgers State University is pleased to invite Mr. Fred Niemann of Hanlon Niemann to
be the guest speaker at their workshops for the Office of Continuing Education.
Mr. Niemann will offer continuing Education courses on Medicaid and Veterans Benefits.
Topic: Medicaid Changes: The Approaching Storm
Date: April 5, 2012
Time: 9:30 AM - 11:30 AM
Place: 5th floor, 390 George St, New Brunswick, NJ
Topic: Hidden Secrets of Veterans Benefits
Date: May 3, 2012
Time: 9:30 AM - 11:30 AM
Place: 5th floor, 390 George St., New Brunswick, NJ
Fredrick P. Niemann, Esq. was recently asked to speak at the NJ State Bar Association Institute of Continuing Legal Education in New Brunswick, NJ on the essentials of estate planning.
Mr. Niemann addressed attorneys from throughout the state of NJ interested in learning key concepts and principals of NJ estate planning, including such topics as wills, trusts, estate taxations, asset protection, powers of attorney, health care directives, special needs and supplemental needs trusts for disabled and incapacitated individuals, avoiding probate through creative use of beneficiary planning, inheritance taxes, gifting and changes coming to federal estate taxation.
Fredrick P. Niemann, Esq. attended the 46th annual Heckerling Institute on Estate Planning conference from January 9th to January 13th at the Orlando World Center sponsored by the Community of Miami School of Law. This week long session assembled the nation’s leading authorities to lecture and discuss the latest in estate planning techniques and strategies. Topics analyzed and discussed included 1) elder law; 2) asset protection; 3) statutory case law developments; 4) planning with financial assets including annuities, Roth IRA’s, and life insurance policies; 5) litigation and tax
controversies; 6) networking and practice development.
Fredrick P. Niemann, Esq. was invited by the Office of Elder Rights and Adult Protective Services of the Department of Health and Senior Services, Division of Aging and Community Services, to make comments on existing Adult Protective Services Programs on August 25, 2010 at the State Capitol located in Trenton, New Jersey.
On March 6th, Fredrick P. Niemann, Esq. addressed the Monmouth County NJ Bar Association Family Law Committee on Special Needs Trusts, Supplemental Needs Trusts for adult and minor incapacitated children and aged parents and their use in asset planning and eligibility for government benefit programs, including Medicaid, SSI and SSD.
At Hanlon Niemann, We Understand New Jersey Special Needs Trusts.
New Jersey Special Needs Trusts
Special needs is a term used in clinical, diagnostic and functional development to describe individuals who require assistance for disabilities that may be cognitive or psychological. Individuals with Autism, Down syndrome, dyslexia, blindness, developmental disability or cystic fibrosis for example, may be considered to have special needs.
Please Listen to Me!
You Need a Special Needs Trust for an Impaired, Disabled or Incapacitated Minor Child, Adult Child, Sibling or Family Member in New Jersey.
We Can Help.
Fredrick P. Niemann, Esq. NJ Special Needs Trust Attorney
Mr. Niemann has been a God send to me and my family. He has met with me many, many times with patience, sensitivity and understanding that few people expect from an attorney. My family issues are complex and Mr. Niemann understands what I want to happen to my estate upon my death, especially for my adult incapacitated child and other adult children. He created a special trust for my son. He has followed up with me to help me make decisions without forcing his opinions on me. In the end, he told me, "Jerri, my job is to explain your choices and help you understand the legal effect of those choices."
He guided me and put me at ease. He wanted me to make decisions that are the right ones for me. I am thankful for Mr. Niemann being my attorney and I recommend him to elderly persons who seek a qualified professional who will treat them with dignity, respect and sensitivity.
—Jeraldine Vincitore Freehold, NJ
TESTIMONIAL
Please accept my sincere thanks to your law firm, to you, Lauren Bercik and your staff for all of your patience and assistance in helping my sister and I through the tangled legal jungle in preparation for my sister’s Special Needs Trust account. We would have been lost without you.
— Ginny Ditzel, Snow Camp, NC
A special needs trust is created to ensure that beneficiaries who are disabled or mentally ill can enjoy the use of property for their benefit. In addition to personal planning for a person who may lack the mental capacity to handle their financial affairs, there may be fiscal advantages to the use of a trust. Such trusts may also avoid beneficiaries losing access to essential government benefits.
Why use a Special Needs Trust for a disabled individual?
1. The disabled beneficiary will keep his/her income (SSI or SSD) and health care benefits.
2. Money in the trust can be used to pay for items and services not covered by public benefits
3. Money in the trust can be used to pay for a doctor who will not accept Medicaid.
4. Parents control where trust assets go before and after the child is deceased.
The only alternatives to the Special Needs Trust are (1) leaving nothing to the child; or (2) leaving money in trust that does not have these restrictions.
Selecting choice (2) will cause the loss of public benefits. After the assets are spent down to under $2,000, the child can go back on public benefits. All the money you have given will be lost.
Click on the picture below to download our Special Needs Trust Booklet
Consult With a New Jersey Special Needs Trust Attorney Today
A Special Needs Trust (SNT) is the ideal planning tool if you have a disabled child or other family member who is disabled. It holds assets for a disabled person without disturbing eligibility for public benefits. SNT assets are used to supplement public benefits. The trust pays for items and services that the public benefits system does not provide.
Types of Special Needs Trusts in New Jersey
Major Distinctions
Two major distinctions may be drawn among all special needs trusts. A special needs trust will be either a “Third Party Trust” or an OBRA 1993 Trust. You may initially determine whether a special needs trust is a Third Party Trust or an OBRA 93 Trust by looking at the source of the assets used to fund the trust. If the assets used to fund the trust do not belong to the beneficiary, or if they are not deemed to belong to the beneficiary, then the trust is a Third Party Trust. In other words, Third Party Trusts will always be established by someone other than the beneficiary and with funds in which the beneficiary has no ownership interest. For example, funds coming from a parent, grandparent or sibling.
Third Party Trusts in New Jersey
There are two general requirements for a Third Party special needs trust. First, these trusts must be established by someone other than the trust beneficiary. Third Party Trusts are usually established by parents of adult children, grandparents, aunts, uncles, siblings, friends, or any other independent party with no legal duty to support the trust beneficiary. A spouse cannot be considered a third party. The second key requirement is that these trusts must be established with funds in which the beneficiary has no ownership interest. Third Party Trusts can be more easily adapted to the needs and wants of the person creating the trust and can therefore be part of a more traditional estate plan. They can be revocable or irrevocable, and most significantly, do not require any “payback provisions” to New Jersey upon the death of the beneficiary. Payback provisions are explained in the last part of the section which follows immediately below.
Disability Trusts in New Jersey
These trusts are also referred to as (d)(4)(A) trusts, which alludes to where they can be found in the Federal statute that authorizes them. This type of trust is generally called a “special needs trust”. To establish a valid Disability Trust in New Jersey, it must satisfy the legal requirements set forth below:
The Trust must be established solely for the benefit of an individual who is disabled as defined by law and who is under 65 years of age.
The trust may only be established by the individual’s parent, grandparent, legal guardian, or a Court.
The Trust must be established with assets belonging to the individual.
Any funds that happen to remain in the Trust at the individual’s death must be used to reimburse the State for medical benefits provided over the individual’s lifetime. This requirement to reimburse the State is commonly referred to as a payback provision.
What About Pooled Trusts in New Jersey
These trusts are also referred to as (d)(4)(C) trusts. To establish a valid Pooled Trust, it must satisfy the legal requirements set forth below in plain language.
The Trust must be established and managed by a non-profit association.
The Trust must maintain separate accounts for each Beneficiary, but the funds are pooled for purposes of investment and management.
Each separate Trust account must be established solely for the benefit of an individual who is disabled as defined by law, and it may only be created by that individual, the individual’s parent, grandparent, legal guardian, or a Court. There are no age restrictions or requirements.
The individual’s account must be established with assets belonging to that individual.
Any funds that remain in an individual’s account at that individual’s death must be retained by the Trust. Any funds not retained by the Trust must be used to reimburse the State. This may be referred to as a modified payback requirement.
Call our office today. Ask for Mr. Niemann to personally discuss your New Jersey Special Needs Trust situation toll-free at (855) 376-5291 or e-mail him at fniemann@hnlawfirm.com.
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