TEN THINGS TO KNOW ABOUT REPORTING A SPECIAL NEEDS TRUST TO GOVERNMENT AGENCIES IN NEW JERSEY

1. Types of Special Needs Trusts (SNTs).  There are two types of SNTs.  A Third-Party Special Needs Trust (TPSNT) and a Self-Settled Special Needs Trust (SSSNT).
2. TPSNT.  A TPSNT is funded with monies of a third party such as a parent, grandparent, sibling, or friend. 
3. SSSNT.  An SSSNT is funded with assets of the individual.  The rules for each type of trust vary.
4. Government Agencies.  Government agencies commonly involved include:
   1. The Social Security Administration (if the beneficiary is receiving Social Security Income (SSI))
   1. The Division of Medical Assistance and Health Services, Beneficiary Administration Action Unit (DMAHS)
   1. The County Board of Social Services
   1. The Department of Housing and Urban Development (HUD) (if beneficiary is receiving assistance under the Housing Choice Voucher (Section 8))
   1. The agencies administering disability services
   1. Federal Division of Internal Revenue Service and New Jersey Division of Revenue
5. Funding.  Funding of a Trust is particularly significant in terms of when an SNT must be reported to a government agency.
6. What and How to Report.  When reporting the Trust to a government agency, a copy of the Trust and all of the Trust assets should be filed with the government agency.  Any amendment to the Trust must be reported.  In the case of a Medicaid recipient, a distribution of more than $5,000 must be reported to the State five days prior to the distribution.
7. Annual and Final Accountings.  Annual and final accountings must be reported.
8. Correspondence.  All correspondence should contain the beneficiary’s Social Security Number and Medicaid ID.
9. CYA.  Copies of all correspondence, the Trust and the Trust assets should be retained by the individual doing the reporting to avoid future problems.
10. Who Must Report. 
    1. The Beneficiary, or
    1. A Representative Payee, or
    1. A Legal Guardian, or

The Trustee (if directed by the Beneficiary or required or State law).