NYSARC Trusts: Providing for People With Disabilities
With the cost of living rising while workers’ wages decline, providing for some of life’s little luxuries – an evening at the movies, dinner out, or a yearly vacation – can be a challenge. For people with disabilities, providing for just the daily essentials is challenge enough. Governmental programs such as Medicaid and Supplemental Security Income (SSI) cover many basic expenses, but don’t provide much room for anything else. For people with disabilities living in the state of New York, a NYSARC trust may provide a means to afford the little things that contribute to a greater quality of life.
What is a NYSARC Trust?
NYSARC, Inc. was established in 1949 with the mission of improving the quality of life for people with intellectual and developmental delays. NYSARC is currently the largest national non-profit in the country for people with intellectual and physical disabilities.
According to the latest U.S. Census Reports, there are over 56.7 million people with intellectual or physical disabilities in the United States. For those living in New York, NYSARC provides trust services, which can protect funds that would otherwise make them ineligible to receive benefits such as Medicaid and SSI. By putting assets into a trust, a person with a disability can benefit financially from having those assets, while remaining eligible for the governmental services they need to survive.
How Does an NYSARC Trust Work?
Trusts for people with disabilities are known as supplemental needs trusts, and NYSARC offers three types of supplemental needs trusts for people receiving government benefits. These are referred to as first party trusts, meaning the funds in the trust come from the individual. A Community Trust I is for one time payments put into a trust, such as from an inheritance, lawsuit, or lump sum benefits payment. These funds may be used for adaptive equipment or educational needs. A Community Trust II is for periodic amounts, such as surplus income which might otherwise make the person ineligible for Medicaid. These funds may be used to cover adaptive equipment as well as certain living expenses. A Community Trust III is also for lump sum amounts, as well as structured settlements. It differs from the prior two community trusts in that it requires a larger deposit to open, and may be subject to Medicaid liens.
Contact Our NYSARC Trust Attorneys
If you or a loved one has a disability and receives Medicaid, SSI, or other government benefits, contact our experienced NYSARC trust attorneys. At Cavallo & Cavallo Attorneys, with offices in the Bronx as well as Westchester, we provide effective legal service in handling all your trust account needs, enabling you to enjoy a greater quality of life by providing access to funds and protecting your assets, while ensuring you remain eligible for the government benefits you are entitled to.