WHAT ARE THE ALTERNATIVES TO A SPECIAL NEEDS TRUST?
by: Begley Law Group
- Gift to Beneficiary. This is not a good idea, because it would make the beneficiary ineligible for many public benefits. These would include:
- SSI
- Medicaid
- New Jersey FamilyCare
- Veterans Benefits
- SNAP (Food Stamps)
- Low Income Home Energy Assistance Program (LIHEAP)
- and many others
- Ignore the Person with Disabilities. This is not a good idea, because that person usually needs money over and above any public benefits that he/she is receiving, so public benefits are absolutely critical to individuals with disabilities.
- Gift to a Sibling. This is often considered with the understanding that the sibling will use the money to support the person with disabilities. However, frequently the sibling runs into financial distress and uses the money for his/her own purposes.