New Jersey Administrative Code › Title 10 - HUMAN SERVICES › Chapter 167E - HEARING AID ASSISTANCE TO THE AGED AND DISABLED › Subchapter 2 - DEFINITIONS › Section 10:167E-2.2 - Special needs trusts

Current through Register Vol. 56, No. 14, July 15, 2024
(a) To be
				considered a special needs trust, the trust shall include the following
				provisions:
1. The trust shall specifically
				state that the trust is for the sole benefit of the trust
				beneficiary;
2. The trust shall
				specifically state that its purpose is to permit the use of trust assets to
				supplement, and not to supplant, impair or diminish, any benefits or assistance
				of any Federal, State or other governmental entity for which the beneficiary
				may otherwise be eligible or which the beneficiary may be receiving;
3. The trust shall specifically state the age
				of the trust beneficiary, that the trust beneficiary is disabled within the
				definition of
				42
				U.S.C. §
											1382c(a)(3),
				and whether the trust beneficiary is competent at the time the trust is
				established;
4. The trust shall
				specifically identify, in an attached schedule, the source of the initial trust
				property and all assets of the trust;
5. If the trust makes provisions which are
				intended to limit invasion by creditors or to insulate the trust from liens or
				encumbrances, the trust shall state that such provisions are not intended to
				limit the State's right to reimbursement or to recoup incorrectly paid
				benefits;
6. The special needs
				trust shall state that it is established by a parent, grandparent, or legal
				guardian of the trust beneficiary or by a court;
7. The trust shall specifically state that it
				is irrevocable. Neither the grantor, the trustee(s), nor the beneficiary shall
				have any right or power, whether alone or in conjunction with others, in
				whatever capacity, to alter, amend, revoke, or terminate the trust or any of
				its terms or to designate the persons who shall possess or enjoy the trust
				estate during his or her lifetime;
8. The trustee shall be specifically
				identified by name and address. The trust shall state that the original trust
				beneficiary cannot be the trustee. The trust shall make provisions for naming a
				successor trustee in the event that any trustee is unable or unwilling to
				serve;
9. The trust shall
				specifically state that the trustee shall fully comply with all State laws,
				including the Prudent Investor Act,
				3B:20-11.1 et seq. The trust shall
				provide that the trustee cannot take any actions not authorized by, or without
				regard to, State laws. If the trust gives the trustee authorization or power
				not provided for in the Prudent Investor Act, an accompanying letter shall
				provide an explanation for each such authorization or power;
10. The trust shall specifically state that
				the trustee shall be compensated only as provided by law in accordance with
				N.J.S.A.
				3B:18-2 et seq. If the trust identifies a
				guardian, the trust shall specifically identify him or her by name. A guardian
				shall be compensated only as provided by law;
11. The trust shall specify that a formal or
				informal accounting of all expenditures made by the trust shall be submitted to
				the appropriate eligibility determination agency on an annual basis;
12. The State shall be given advance notice
				of any expenditure in excess of $ 5,000, and of any amount which would
				substantially deplete the principal of the trust. Notice shall be given to the
				Office of State Health Insurance for the Aged & Disabled, Division of Aging
				Services, PO Box 715, Trenton, NJ 08625-0715, or any successor agency, 45 days
				prior to the expenditures; and
13.
				New Jersey rules and laws do not permit a trust to create a will for an
				incompetent or a minor. The money creating the trust, any additions and/or
				interest accumulated, cannot be left to other parties, but shall pass by
				intestacy. The trust shall not create other trusts within it.