Elder law and special needs planning require consistent attention across the changing legal landscape, and the new year brings updates that affect the strategies families rely on to protect aging family members and individuals with disabilities. January presents an ideal time to review existing planning structures, assess recent changes in Medicaid rules, Social Security thresholds, and trust regulations, and ensure that plans put in place in prior years remain effective under current law.
Mandelbaum Barrett PC’s trusts and estates and elder law practice advises families in New Jersey and New York on the full range of planning tools available to protect aging family members and those with disabilities — including special needs trusts, Medicaid asset protection planning, guardianship, and related matters. The firm’s attorneys work closely with families to understand their goals and build legal structures that address both immediate needs and long-term contingencies.
Elder Law Planning Priorities at the Start of a New Year
Each January brings updated figures that affect key elder law planning tools. Annual Social Security cost-of-living adjustments affect benefit amounts for those relying on SSI and Social Security retirement income. Medicaid eligibility thresholds, asset limits, and look-back periods in New Jersey are subject to annual updates that can affect the planning strategies available to individuals approaching the need for long-term care. IRS gift and estate tax exemption figures also reset annually, which affects strategies for transferring wealth in ways that preserve Medicaid eligibility while reducing future estate tax exposure.
For families who have existing plans in place — whether special needs trusts, Medicaid-compliant annuities, or irrevocable trusts for asset protection — the start of a new year is a natural time to review whether those structures remain properly funded and legally current. Trustees of special needs trusts have ongoing administrative obligations and should confirm that trust administration practices continue to comply with current Medicaid requirements. Any changes in a beneficiary’s living situation, public benefit eligibility, or financial picture should trigger a review of existing trust terms and funding.
Special Needs Planning Considerations
Special needs planning serves families who want to provide long-term financial support to a family member with a disability without inadvertently disqualifying that person from means-tested public benefits like SSI and Medicaid. A properly structured special needs trust holds assets for the benefit of the individual with a disability in a way that supplements, rather than replaces, public benefits. The planning around these trusts involves not only the trust document itself but also beneficiary designations, coordination with other estate planning documents, and a clear picture of how the trust can and cannot be used.
Third-party special needs trusts — funded with assets from parents, grandparents, or other family members — and first-party trusts — funded with the beneficiary’s own assets, often from a personal injury settlement or inheritance — have different rules and implications. The distinction matters both for initial planning and for ongoing administration, and families navigating these decisions benefit from counsel who understands both the legal requirements and the practical realities of supporting a family member with a disability over a lifetime.
According to the Social Security Administration, special needs trusts that meet specific legal requirements may allow individuals receiving SSI to hold assets in trust without those assets counting against the SSI resource limit. SSA provides guidance on qualifying trust requirements on its website.
Contact Mandelbaum Barrett PC for Elder Law and Special Needs Planning
If your family is navigating elder law planning, Medicaid considerations, or special needs trust administration in New Jersey or New York, the trusts and estates team at Mandelbaum Barrett PC can help.
Reach out through our contact page to speak with our attorneys. We are here to help families build and maintain the legal structures they need to protect every member of their family now and in the years ahead.