A direct inheritance, settlement, or substantial gift can jeopardize the Medicaid or Supplemental Security Income benefits a person with a disability relies on. A properly structured special needs trust can hold those assets for the beneficiary’s supplemental needs without placing them directly in the beneficiary’s name.

Elton John Bozanian, Esq. helps families throughout Bergen County and northern New Jersey create special needs trusts that align with their estate plans, public benefits, guardianship arrangements, and long-term goals. His guidance can help you select the right trust, fund it correctly, and establish clear responsibilities for those who will manage it.

Why Choose Elton John Bozanian, Esq. for Special Needs Planning?

A special needs trust must remain workable as the beneficiary’s needs, family circumstances, and benefit rules change. Elton brings 30 years of experience in estate planning, guardianship, fiduciary matters, and trust disputes to each plan.

Families benefit from:

  • Planning informed by fiduciary litigation. His experience handling contested trusts and fiduciary disputes helps him anticipate questions that may later arise about trust language or administration.
  • Extensive guardianship experience. He has served as court-appointed counsel, guardian ad litem, temporary guardian, and fiduciary in New Jersey matters.
  • Professional involvement in elder law. Elton is a Director of the New Jersey Chapter of the National Association of Elder Law Attorneys.
  • Coordinated firm resources. Through Schenck Price Smith & King LLP, tax, litigation, and related issues can be addressed with support from a full-service New Jersey law firm.
  • Individual attention. Each trust reflects the source of the assets, the beneficiary’s public benefits, and the people who will manage future responsibilities.

What Types of Special Needs Trusts Are Available in New Jersey?

The appropriate trust depends largely on who owns the assets being transferred.

A third-party special needs trust holds assets belonging to parents, grandparents, or others. It may be created during the grantor’s lifetime or through a will. Because the funds never belonged to the beneficiary, the trust generally does not require Medicaid reimbursement after the beneficiary’s death. Remaining assets can pass to other named beneficiaries.

A first-party special needs trust holds the beneficiary’s own assets, which may come from a settlement, direct inheritance, or accumulated savings. The trust generally must be established and funded before the beneficiary turns 65. Funds remaining after the beneficiary’s death must first be available to reimburse Medicaid as required by law.

A pooled trust is administered by a nonprofit organization that manages a separate account for each beneficiary. It may be appropriate for smaller amounts or when no relative is prepared to serve as trustee. Rules concerning funds remaining at death depend on the trust documents and applicable Medicaid requirements.

How Does a Special Needs Trust Fit Into an Estate Plan?

A trust protects benefits only if assets are directed to it correctly. Your will, beneficiary designations, life insurance policies, and other estate planning documents should work together so that an inheritance does not pass directly to the person receiving Medicaid or SSI.

Other relatives should understand the arrangement as well. A well-intended gift from a grandparent or sibling could disrupt eligibility if made outright. Families may also prepare a letter of intent describing the beneficiary’s routines, providers, communication preferences, and goals for future trustees and caregivers.

What Can a Special Needs Trust Pay For?

Trust assets can supplement services provided through public programs. Depending on the beneficiary’s needs and benefits, the trustee may pay for education, therapies, transportation, assistive technology, personal care, recreation, and other items that improve daily life.

Distributions must be evaluated individually. Cash paid directly to an SSI recipient generally counts as income. Trust payments for shelter may also reduce SSI under current in-kind support and maintenance rules, even when the payment goes directly to a landlord or mortgage company. The trustee should review the beneficiary’s benefits before approving distributions and maintain clear records.

Does a Special Needs Trust Replace Guardianship?

No. A trust controls how assets are managed and distributed. Guardianship gives someone legal authority to make certain personal, medical, financial, or residential decisions.

When a child with a developmental disability turns 18, parents no longer have automatic authority to make decisions on the child’s behalf. Some families pursue guardianship, while others use powers of attorney, supported decision-making, or other less restrictive arrangements when appropriate. These decisions should be considered alongside the trust as part of a coordinated elder and special needs plan.

Who Should Serve as Trustee?

A trustee reviews distribution requests, manages assets, maintains records, and monitors how payments interact with public benefits. A relative may understand the beneficiary well but lack the time or administrative background to serve. Other options include a professional fiduciary or corporate trustee.

The trust should also name successors so management continues if the initial trustee resigns, becomes incapacitated, or dies.

Plan for Your Loved One’s Long-Term Protection

Planning before an inheritance or settlement is received provides more options and reduces the risk of interrupted benefits. Elton John Bozanian, Esq. can review your family’s circumstances, recommend an appropriate trust structure, and coordinate it with your broader estate or guardianship plan. Contact the firm to request a consultation.

Frequently Asked Questions

Can an ABLE account be used with a special needs trust?

Yes. Families often use both. An ABLE account allows a person with a qualifying disability to control funds for eligible expenses, subject to contribution and balance rules. A trust can hold larger amounts under the trustee’s management.

Can a special needs trust own a house?

Yes. A trust may purchase or hold a residence for the beneficiary. Ownership costs and shelter payments should be reviewed beforehand because they can affect SSI calculations.

How can an existing bequest be redirected to a special needs trust?

The donor may need to update a will, trust, or beneficiary designation to name the special needs trust instead of the individual. The trust should be identified correctly to ensure the assets reach it.

Special Needs Trusts

A direct inheritance, settlement, or substantial gift can jeopardize the Medicaid or Supplemental Security Income benefits a person with a disability relies on. A properly structured special needs trust can hold those assets for the beneficiary’s supplemental needs without placing them directly in the beneficiary’s name.

Elton John Bozanian, Esq. helps families throughout Bergen County and northern New Jersey create special needs trusts that align with their estate plans, public benefits, guardianship arrangements, and long-term goals. His guidance can help you select the right trust, fund it correctly, and establish clear responsibilities for those who will manage it.

Why Choose Elton John Bozanian, Esq. for Special Needs Planning?

A special needs trust must remain workable as the beneficiary’s needs, family circumstances, and benefit rules change. Elton brings 30 years of experience in estate planning, guardianship, fiduciary matters, and trust disputes to each plan.

Families benefit from:

  • Planning informed by fiduciary litigation. His experience handling contested trusts and fiduciary disputes helps him anticipate questions that may later arise about trust language or administration.
  • Extensive guardianship experience. He has served as court-appointed counsel, guardian ad litem, temporary guardian, and fiduciary in New Jersey matters.
  • Professional involvement in elder law. Elton is a Director of the New Jersey Chapter of the National Association of Elder Law Attorneys.
  • Coordinated firm resources. Through Schenck Price Smith & King LLP, tax, litigation, and related issues can be addressed with support from a full-service New Jersey law firm.
  • Individual attention. Each trust reflects the source of the assets, the beneficiary’s public benefits, and the people who will manage future responsibilities.

What Types of Special Needs Trusts Are Available in New Jersey?

The appropriate trust depends largely on who owns the assets being transferred.

A third-party special needs trust holds assets belonging to parents, grandparents, or others. It may be created during the grantor’s lifetime or through a will. Because the funds never belonged to the beneficiary, the trust generally does not require Medicaid reimbursement after the beneficiary’s death. Remaining assets can pass to other named beneficiaries.

A first-party special needs trust holds the beneficiary’s own assets, which may come from a settlement, direct inheritance, or accumulated savings. The trust generally must be established and funded before the beneficiary turns 65. Funds remaining after the beneficiary’s death must first be available to reimburse Medicaid as required by law.

A pooled trust is administered by a nonprofit organization that manages a separate account for each beneficiary. It may be appropriate for smaller amounts or when no relative is prepared to serve as trustee. Rules concerning funds remaining at death depend on the trust documents and applicable Medicaid requirements.

How Does a Special Needs Trust Fit Into an Estate Plan?

A trust protects benefits only if assets are directed to it correctly. Your will, beneficiary designations, life insurance policies, and other estate planning documents should work together so that an inheritance does not pass directly to the person receiving Medicaid or SSI.

Other relatives should understand the arrangement as well. A well-intended gift from a grandparent or sibling could disrupt eligibility if made outright. Families may also prepare a letter of intent describing the beneficiary’s routines, providers, communication preferences, and goals for future trustees and caregivers.

What Can a Special Needs Trust Pay For?

Trust assets can supplement services provided through public programs. Depending on the beneficiary’s needs and benefits, the trustee may pay for education, therapies, transportation, assistive technology, personal care, recreation, and other items that improve daily life.

Distributions must be evaluated individually. Cash paid directly to an SSI recipient generally counts as income. Trust payments for shelter may also reduce SSI under current in-kind support and maintenance rules, even when the payment goes directly to a landlord or mortgage company. The trustee should review the beneficiary’s benefits before approving distributions and maintain clear records.

Does a Special Needs Trust Replace Guardianship?

No. A trust controls how assets are managed and distributed. Guardianship gives someone legal authority to make certain personal, medical, financial, or residential decisions.

When a child with a developmental disability turns 18, parents no longer have automatic authority to make decisions on the child’s behalf. Some families pursue guardianship, while others use powers of attorney, supported decision-making, or other less restrictive arrangements when appropriate. These decisions should be considered alongside the trust as part of a coordinated elder and special needs plan.

Who Should Serve as Trustee?

A trustee reviews distribution requests, manages assets, maintains records, and monitors how payments interact with public benefits. A relative may understand the beneficiary well but lack the time or administrative background to serve. Other options include a professional fiduciary or corporate trustee.

The trust should also name successors so management continues if the initial trustee resigns, becomes incapacitated, or dies.

Plan for Your Loved One’s Long-Term Protection

Planning before an inheritance or settlement is received provides more options and reduces the risk of interrupted benefits. Elton John Bozanian, Esq. can review your family’s circumstances, recommend an appropriate trust structure, and coordinate it with your broader estate or guardianship plan. Contact the firm to request a consultation.

Frequently Asked Questions

Can an ABLE account be used with a special needs trust?

Yes. Families often use both. An ABLE account allows a person with a qualifying disability to control funds for eligible expenses, subject to contribution and balance rules. A trust can hold larger amounts under the trustee’s management.

Can a special needs trust own a house?

Yes. A trust may purchase or hold a residence for the beneficiary. Ownership costs and shelter payments should be reviewed beforehand because they can affect SSI calculations.

How can an existing bequest be redirected to a special needs trust?

The donor may need to update a will, trust, or beneficiary designation to name the special needs trust instead of the individual. The trust should be identified correctly to ensure the assets reach it.