Posted by: BlogMaster | March 7, 2017

New Law – But Not in NYState: Disabled Person Can Create Supplemental Needs Trust (SNT)

In December 2016, the Special Needs Trust Fairness Act was passed under then President Obama. The act amends the special needs trust laws to allow a competent but disabled person under the age of 65 years to establish their own pay back supplemental needs trust (SNT).

What did the old law entail?

Prior to this change, and since 1993, only a parent, grandparent, court or legal guardian appointed by a court could establish the payback supplemental needs trust. This required competent but disabled adults to resort to costly legal proceedings – including the appointment of a temporary guardian – to establish an SNT for their benefit to legally shelter assets and income if Medicaid services were needed.

The benefits of the new law?

This law will restore the dignity to which a person with disabilities is entitled, and allow him or her the lawful right to engage in Medicaid planning using a payback SNT. 

Any caveats?

However, unfortunately for New York State residents, Medicaid will not recognize trusts under this new federal law until the NY legislature passes regulations which enable the law.

What can you do about this?

I urge you to contact your state assembly and senate representatives and ask them to pass the required regulations so the law can be used in New York State.

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