Most people are aware of trusts as devices that hold assets or funds for the benefit of children of wealthy people. But a trust in New Jersey can benefit a special needs child as well!
Once special needs children graduate from the school system, they often need to utilize Medicaid to be able to gain access to the various systems and services they require due to their needs. But Medicaid in these cases is only available to those with less than $2,000 in includable assets in their name. How can you get your special needs child access to the services they need if they have more than $2,000 in includable assets in their name? With a Supplemental Needs Trust!
With a Supplemental Needs Trust, funds can be used to supplement the special needs child’s care, not as a primary source. A trust-funded bank account is created that strictly adheres to Medicaid’s asset requirements and all care expenses are then paid through this bank account. This keeps the child’s assets below the Medicaid $2,000 threshold and allows them to get the services they require even if they have more than the maximum amount of assets.
Upon a trust settlor’s death, a payment to the special needs child can be made directly to this trust to keep it funded. All other gifts to the child that should be funneled through the Medicaid-adherent account in order to protect the child’s benefits and keep their assets below the maximum allowed.
The trustee that administers the trust will likely have to obtain a trustee surety bond to ensure that they work according to the interests of the trust beneficiaries.
Where can you easily purchase a trustee surety bond?
Colonial Surety offers the direct and digital way to obtain trustee bonds. We are the insurance company — which means no agent, no broker, and no middleman. We make it easy to obtain your court bond instantly. The steps are easy — get a quote online, fill out your information, satisfy underwriting requirements, and enter your payment method. Print or e-file your bond from your office. It’s that simple!