Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. Those with special needs have unique challenges in life. But, there are special accounts available to individuals who were disabled before age 26. The Achieving a Better Life Experience or “ABLE” Act created ABLE accounts under section 529A. 529 accounts give preferential tax treatment when the accounts are used for educational expenses (this was discussed in our … [Read more...] about Special Accounts for People with Special Needs
A Special Option for Special Kids
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. Planning for beneficiaries with special needs requires unique attention. Public benefits can be an essential way to provide for the specialized care these beneficiaries require to allow them to lead fulfilling lives. When assets are given to such beneficiaries, they must be given in a specially-drafted “special needs” trust in order to keep those assets from … [Read more...] about A Special Option for Special Kids
Special Needs Trusts: Two Words to Say Fairness
By: Matthew M. Shafae, Attorney Litherland, Kennedy & Associates, APC, Attorneys at Law Special Needs Trusts (also called Supplemental Needs Trusts) are specific types of trusts that allow a disabled person to be the beneficiary of a trust while not interrupting his/her eligibility to receive government assistance. Without a Special Needs Trust, persons with disabilities risk losing government benefits if they receive an inheritance, a personal injury award, or receive other funds. In 1993, … [Read more...] about Special Needs Trusts: Two Words to Say Fairness
Why is Estate Planning Important in 2016?
Studies show that a majority of American adults do not have a complete and cogent estate plan in place. Failing to plan ahead for death and the likelihood of incapacity in our later years can be costly, both emotionally and financially. Many people do not have an estate plan because they don't understand the importance of estate planning. We will highlight some of the key reasons why estate planning is essential in this blog. Avoiding Intestacy If you pass away without any estate … [Read more...] about Why is Estate Planning Important in 2016?
Can I Protect My Injury Settlement With a Special Needs Trust?
Supplemental Security Income or SSI is a government program that is in place to provide disabled people with a basic source of ongoing financial support. However, it is not automatically afforded to you if you are disabled. To qualify for Supplemental Security Income, you must be able to prove that you have financial need. In addition, the eligibility is not necessarily permanent. An improvement in financial status could result in a loss of eligibility. A similar situation exists with regard to … [Read more...] about Can I Protect My Injury Settlement With a Special Needs Trust?
What Is a First Party Special Needs Trust?
People with disabilities often rely on Medi-Cal for health insurance, and Supplemental Security Income can provide a minimal source of monthly income. A special needs trust is a type of legal device that can be used to provide support for a person with a disability who is enrolled in these government benefit programs. Special needs trusts are used because Medi-Cal and Supplemental Security Income are only available to people who can prove that they have significant financial need. Individuals … [Read more...] about What Is a First Party Special Needs Trust?
Are There Different Types of Special Needs Trusts?
Special needs trusts can be very useful if you have a loved one with a disability who is relying upon government benefit programs like Medi-Cal and Supplemental Security Income. Medi-Cal is California's version of the Medi-Cal program. This program provides health insurance for people who can meet the eligibility requirements. These requirements are stringent, because Medi-Cal is a need-based program. It is intended for people who have little to no financial resources. If you have a … [Read more...] about Are There Different Types of Special Needs Trusts?
What Is a Third Party Special Needs Trust?
You should know all the facts when you are planning your estate. There are notions floated on the Internet about the effectiveness of do-it-yourself estate planning. The suggestion is that anyone can plan his or her estate without professional guidance. In fact, you could make mistakes that yield unintended consequences if you make assumptions and go it alone. With this in mind, we will look at third party special needs trusts in this post. Unique Individuals Each person on your inheritance … [Read more...] about What Is a Third Party Special Needs Trust?
How Much Does a Special Needs Trust Cost?
There are various different ways to facilitate asset transfers to your heirs. When you are making decisions, you should evaluate the life situation of each person on your inheritance list. You can provide for each person optimally if you act in an informed manner. Special Needs Trusts Special needs trusts are primarily used to preserve government benefits. Many people with disabilities are enrolled in government benefit programs that are only available to individuals who can demonstrate … [Read more...] about How Much Does a Special Needs Trust Cost?
What Is a Supplemental Needs Trust?
You have a number of choices to make when you are planning your estate. There are various different vehicles of asset transfer that can be utilized. When you act in an informed manner, you can be certain that all of your loved ones are provided for appropriately. With this in mind, we would like to look at the value of supplemental needs trusts in this post. Protecting Government Benefits If you have someone with a disability on your inheritance list, you must take measured steps. A high … [Read more...] about What Is a Supplemental Needs Trust?
