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Advocate's Outline on Supplemental Needs Trusts and Rules for Impact of Lump Sums on Various Benefits

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Posted: 01 Aug, 2008
by David Silva (New York Legal Assistance Group)
Updated: 25 Aug, 2019
by Valerie Bogart (New York Legal Assistance Group)

This in-depth training outline (updated January 2019) covers how Supplemental Needs Trusts work (both individual and pooled), when an asset or lump sum may be deposited into an SNT.  For Community Medicaid only, income may also be placed into an SNT.  Explains how lump sums and SNTs affect eligibility for SSI, Medicaid, Section 8, SCRIE/DRIE, SNAP,  Temporary or Public Cash Assistance/HASA, and other  public benefits, including new rules on the Veteran's Pension. 

Not yet included in this outline is this WARNING:  -- See this warning if the Joinder Agreement is executed using a  Power of Attorney.

The 2019 edition includes:

  • More information on resource rules and impact of lump sums on Public Assistance and HASA, with thanks and references to these companion materials:
  • Revisions to SSA POMS April 2018 re “Sole Benefit” Rule - expenses that may be paid by SNTs to third parties, and other changes
  • Veterans’ pension – In October 2018 added new transfer penalties, asset limits
  • Information on ABLE accounts as a possible alternative or supplement to SNTs, for those individuals who became disabled before age 26.
  • Changes in Section 8 and public housing asset limits enacted in 2016 (not yet implemented as of Jan. 2019), and a 1st Circuit Court of Appeals decision issued in 2016 that finds distributions from principal held in an SNT are not income;
  • The Pooled Trust Notification Law enacted in December 2017! 


Other information about Pooled Income Trusts -  See Related Articles below.

Attached files
item NYLAG SNT Outline 1-13-19 FINAL.pdf (1.47 mb) Download
item NYSBA Partnership outline and appendix.pdf (3.14 mb) Download

Also read
item List of Pooled SNTs in New York State
item Step-by-step guide to enrolling in a pooled income trust for Medicaid spend-down
item Keeping Medicaid after Cash Public Assistance or SSI Benefits Are Terminated
item Legal Authorities Relating to Supplemental Needs Trusts
item Medicaid Disability Determinations - NYS Forms & Procedures (with updated forms July 2012)
item Special Medicaid Income Rules That May Eliminate Your "Spend-down" or "Surplus Income"

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Step-by-step guide to enrolling in a pooled income trust for...       List of Pooled SNTs in New York State

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