Recently, I met with new clients who are grandparents to many grandchildren, one of which is special needs. I was asked if Medicaid will be able to take whatever funds are left over in the grandchild’s trust if he receives public benefits. They want to create a special needs trust for their grandchild since he is not expected to live beyond 30 and is seriously disabled. They are hoping any money left over at that time can be distributed to their other grandchildren and not taken by the government.
Let me be clear with my answer. There will be no Medicaid payback required if you create, fund and establish a special needs trust. In other words, you can fund this trust with your money (as well as that of anyone else who contributes to it). With a loss in benefits to the grandchild, payback provisions for NJ Medicaid apply only to a first-party trust, one that is established with the beneficiary’s own money, in this case, the grandchild.
These grandparents can certainly set up the trust so that anything that remains in it when their grandchild is gone gets divided among their surviving grandchildren or anyone else of their choosing. A special needs trust is somewhat complex so hire someone with experience in this area to make sure they accomplish what you wish.
Contact me personally today to discuss your New Jersey special needs trust matter. I am easy to talk to, very approachable and can offer you practical, legal ways to handle your concerns. You can reach me toll free at (855) 376-5291 or e-mail me at firstname.lastname@example.org
By Fredrick P. Niemann, Esq. of Hanlon Niemann & Wright, a Freehold Township, Monmouth County New Jersey Special Needs Trust Attorney