Real Estate Considerations for Dementia Patients in New Jersey

Santoro Seniors Strategies helps seniors and their families navigate home transitions, including sale and management of real estate, assisted living placement and home modification planning.

Dementia is a progressive condition that affects memory, thinking, and behavior, making it increasingly difficult for individuals to manage their daily lives. As the condition advances, it becomes crucial to ensure that dementia patients receive the care and support they need. One effective way to secure their financial future and well-being in New Jersey is through the establishment of a Special Needs Trust (SNT) with a focus on real estate.

What is a Special Needs Trust?

A Special Needs Trust is a legal arrangement designed to manage and protect assets for individuals with disabilities, including those with dementia. The primary purpose of an SNT is to ensure that the beneficiary can maintain their quality of life without jeopardizing their eligibility for government benefits such as Medicaid and Supplemental Security Income (SSI).

Types of Special Needs Trusts

1. First-Party Special Needs Trust: Funded with the assets of the individual with special needs, often established when the person receives a significant amount of money, such as an inheritance or a personal injury settlement.

2. Third-Party Special Needs Trust: Funded by someone other than the beneficiary, typically parents or other family members.

3. Pooled Special Needs Trust: Managed by a non-profit organization, this trust pools the resources of multiple beneficiaries for investment purposes while maintaining separate accounts for each individual.

   
   

Real Estate Considerations for Dementia Patients

1. Property Management: Appointing a trustee or a property manager can ensure that the property is well-maintained and that all financial obligations, such as taxes and insurance, are met.

2. Housing Options: Real estate assets can be sold or rented out to fund long-term care options like assisted living or memory care facilities.

3. Legal Protections: Establishing a Special Needs Trust can protect real estate assets from being counted towards Medicaid eligibility limits.

   
   

Establishing a Special Needs Trust in New Jersey

Creating an SNT involves careful planning and legal expertise. In New Jersey, it is essential to work with an attorney who specializes in elder law or special needs planning to ensure that the trust is set up correctly and complies with all relevant regulations.

For families caring for a loved one with dementia in New Jersey, a Special Needs Trust with a focus on real estate can be a vital tool in securing their financial future and enhancing their quality of life. By understanding the different types of SNTs and their benefits, families can make informed decisions that provide long-term support and peace of mind. Aligning yourself with a Seniors Real Estate Specialist (SRES), eldercare attorney and trust company is a great place to start.  I, of course, recommend Santoro Senior Strategies (Clinton, NJ) and Garden State Trust Company (Lebanon, NJ).  For a free consultation on matters of senior living and home transitions, contact Jenifer Santoro at santoro@s3seniors.com.