New Jersey 2022-2023 Regular Session

New Jersey Senate Bill S1079

Introduced
1/31/22  

Caption

Concerns special needs trusts for persons with developmental disabilities.

Impact

The successful implementation of S1079 would enable families to utilize pre-tax funds more effectively to provide for their loved ones' long-term care needs. The bill requires the DDD to consult with at least five advocacy groups representing the interests of individuals with developmental disabilities to gather insights and recommendations. This consultation process is expected to enhance the resources available for families, providing crucial information on how these trusts can be structured and the benefits thereof.

Summary

Senate Bill S1079, introduced in the New Jersey Legislature, aims to address the needs of individuals with developmental disabilities through the establishment of a program for special needs trusts. The bill mandates the Division of Developmental Disabilities (DDD) within the Department of Human Services to investigate the feasibility of allowing pre-tax dollars to fund these trusts. This legislative initiative recognizes the financial challenges faced by families supporting dependents with developmental disabilities.

Contention

While the bill appears to be broadly beneficial, there could be points of contention regarding the taxation policies surrounding special needs trusts and the balancing of state oversight versus family autonomy in managing these trusts. Some advocates may call for additional protections for individuals with developmental disabilities to ensure that the trust funds are used appropriately and effectively, highlighting the need for transparency and accountability in the proposed program.

Companion Bills

NJ A2863

Same As Concerns special needs trusts for persons with developmental disabilities.

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