by Thomas D. Begley, Jr., CELA
Introduction
Housing for an individual with disabilities is a major concern. The purchase of a residence is a very important decision involving a number of factors. This is particularly true where the individual is receiving means-tested public benefits such as Supplemental Security Income (SSI) and Medicaid. If there is a special needs trust involved, the SSI and State Medicaid Regulations must be carefully considered.
Selecting the Right Home
Often, a home must be made handicap accessible. In selecting a home, care must be taken to ensure that the home can be adapted for the individual with disabilities.
How Much to Spend
In determining how much to spend for the home, there are certain constraints that must be observed. The trust should last the lifetime of the beneficiary. How much can be spent on the home depends on the size of the trust. Most professional trustees will limit expenditures for a home purchase to between 15% and 25% of trust assets.
Who Should Own the Home?
In New Jersey, if the trust pays for the home, it must be titled in the name of the trust. This means that there are only two good options for homeownership:
Conclusion
Homeownership in personal injury settlement is always a complex issue. If the plaintiff suffers from disabilities, a First-Party Special Needs Trust should always be considered, and a professional trustee should be engaged to administer the trust.
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