Special Needs Trust

2,613 views

Published on

This is a power point presentation I narrated to help parents understand some basic information about special needs (supplemental services) trusts and how to hire an attorney.

Published in: Self Improvement
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
2,613
On SlideShare
0
From Embeds
0
Number of Embeds
35
Actions
Shares
0
Downloads
30
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Special Needs Trust

  1. 2. <ul><li>ESTATE PLANNING </li></ul><ul><li>FOR FAMILIES </li></ul><ul><li>WITH PERSONS </li></ul><ul><li>WITH DISABILITIES </li></ul><ul><li>© Paul A. Nidich, J.D., LL.M. </li></ul><ul><li>Suite 365 </li></ul><ul><li>4555 Lake Forest Drive </li></ul><ul><li>Cincinnati, Ohio 45242 </li></ul><ul><li>513.563.1595 </li></ul><ul><li>http:/www.specialneedslawyer.biz </li></ul>
  2. 3. THE PRIMARY CONCERN OF FAMILIES WITH MEMBERS WHO HAVE DISABILITIES: <ul><li>“ What will happen to our _________ </li></ul><ul><li>when we’re gone? </li></ul>
  3. 4. THE ANSWER <ul><li>SUPPLEMENTAL NEEDS PLANNING </li></ul>
  4. 5. SUPPLEMENTAL NEEDS PLANNING – <ul><li>PURPOSE: </li></ul><ul><li>To answer the question “What will happen when we’re gone?” with a well-thought out plan! </li></ul><ul><li>and </li></ul>
  5. 6. <ul><li>To ensure the availability of governmental resources to maximize the quality of life of the individual with disabilities. </li></ul>
  6. 7. PRELIMINARY QUESTIONS TO DETERMINE THE TYPE OF ESTATE PLAN WHICH IS MOST APPROPRIATE FOR YOUR SITUATION
  7. 8. PRELIMINARY PLANNING QUESTION - I <ul><li>Will the person with disabilities likely be able to earn enough money to support himself or herself? </li></ul>
  8. 9. ACTION: <ul><li>If the individual is likely to be able to support him/herself, government benefits may be limited. A “typical” estate plan may be all that is needed. </li></ul>
  9. 10. ACTION: <ul><li>Planned Lifetime Assistance Network of Southwest Ohio, (PLAN), provides supplemental services to individuals with disabilities. With or without receiving government benefits, this may be an appropriate choice to obtain needed services. CALL 821.6111. </li></ul>
  10. 11. PRELIMINARY PLANNING QUESTION - II <ul><li>If it is unlikely that the person with disabilities will be able to earn enough money to support himself or herself . . . </li></ul>
  11. 12. ACTION: <ul><li>CREATE A SUPPLEMENTAL NEEDS TRUST </li></ul>
  12. 13. WHY? <ul><li>To qualify for or continue </li></ul><ul><li>to qualify for </li></ul><ul><li>governmental benefits. </li></ul>
  13. 14. GOVERNMENT BENEFITS <ul><li>Supplemental Security Income (SSI) </li></ul><ul><li>Medicaid </li></ul><ul><li>Adult Disabled Children Program (DAC) </li></ul><ul><li>Medicare </li></ul>
  14. 15. <ul><li>Food stamps </li></ul><ul><li>Case Management </li></ul><ul><li>Housing </li></ul><ul><li>Employment Support </li></ul>
  15. 16. TRUST PLANNING <ul><li>Living Trust </li></ul><ul><li>Discretionary Trust </li></ul><ul><li>Drafted Supplemental Needs Trust </li></ul><ul><li>Statutory Supplemental Needs Trust </li></ul><ul><li>Pooled Trust </li></ul><ul><li>“ Sibling” Trusts </li></ul>
  16. 17. LIVING TRUST <ul><li>A Living Trust is used primarily as a means to minimize the involvement of probate. Trusts are not just for people trying to avoid estate taxes. While most people don’t need to do estate tax planning, everyone can benefit from probate planning. </li></ul>
  17. 18. DISCRETIONARY TRUST <ul><li>A Discretionary Trust is often used as an intermediate step to shield unnecessary money from flowing into the supplemental needs trust. This is designed to meet two goals: </li></ul>
  18. 19. DISCRETIONARY TRUST <ul><li>1) It keeps too much money from going into the supplemental needs trust at one time, and </li></ul><ul><li>2) If the supplemental needs trust laws or regulations change, it minimizes the amount of money at risk to be paid back to the government. </li></ul>
  19. 20. SUPPLEMENTAL NEEDS TRUST (DRAFTED) <ul><li>This is the primary recipient of funds to provide the supplemental services for the person with disabilities. It should be funded sparingly (see previous slide, #2). </li></ul>
  20. 21. SUPPLEMENTAL NEEDS TRUST (STATUTORY) <ul><li>While the statutory supplemental needs trust might fit some situations, it does have some negatives. The amount of money that </li></ul>
  21. 22. SUPPLEMENTAL NEEDS TRUST (STATUTORY) <ul><li>can be put into such a trust is limited by state law, and when the trust is no longer in existence, up to half of the value of the trust MUST be paid to the state. </li></ul>
  22. 23. “ SIBLING TRUST” <ul><li>A “Sibling Trust” is designed to provide maximum flexibility in moving money to family members who don’t have disabilities. It also serves as the residuary beneficiary of the supplemental needs trust. </li></ul>
  23. 24. INTERVIEW THE PROSPECTIVE ATTORNEY <ul><li>Most attorneys, even those who regularly draft estate plans, don’t know the basics of supplemental needs planning. Meet with the attorney and interview him or her. Any attorney worth hiring will NOT be offended. </li></ul>
  24. 25. INTERVIEW THE PROSPECTIVE ATTORNEY <ul><li>Find out, for example, how long the attorney has been involved in supplemental needs trust planning. Ask why the attorney does supplemental needs planning. </li></ul>
  25. 26. INTERVIEW THE PROSPECTIVE ATTORNEY <ul><li>Ask the attorney to explain the difference between the statutory supplemental needs trust and other kinds of supplemental needs trusts. </li></ul>
  26. 27. INTERVIEW THE PROSPECTIVE ATTORNEY <ul><li>If you don’t get satisfactory answers; if the “chemistry” isn’t right; or if the attorney only uses the statutory supplemental needs trust in every situation, don’t hire that attorney, even if you may ultimately choose a statutory trust. </li></ul>
  27. 28. MY SUPPLEMENTAL NEEDS TRUST “PACKAGE” <ul><li>Wills for Husband and Wife </li></ul><ul><li>Financial Powers of Attorney for Husband and Wife </li></ul><ul><li>Health Care Advanced Directives for Husband and Wife </li></ul>
  28. 29. MY SUPPLEMENTAL NEEDS TRUST “PACKAGE” <ul><li>Revocable Living Trust </li></ul><ul><li>Irrevocable Supplemental Needs Trust </li></ul>
  29. 30. DIAGRAM OF TRUST PLAN I TYPICALLY USE
  30. 31. WHAT DOES THIS COST? <ul><li>The average cost for this kind of estate plan in the Cincinnati area is probably $2,500 to $3,500. </li></ul>
  31. 32. WHAT DOES THIS COST? <ul><li>Because my son has autism, and I know just how important this is for families with special needs members, I currently charge $1,250 no matter how many meetings it takes to draft the plan. </li></ul>
  32. 33. WHAT DOES THIS COST? <ul><li>However, because of the rising costs of everything, I probably will be increasing my fee to $1,500 after the first of the year. </li></ul>
  33. 34. WHAT DOES THIS COST? <ul><li>Perhaps this will give you an added incentive to get this extremely important planning done, if you would like me to prepare your plan. </li></ul>
  34. 35. THANK YOU FOR YOUR TIME! © Paul A. Nidich, J.D., LL.M. (Taxation) 4555 Lake Forest Drive Suite 365 Cincinnati, OH 45242 513.563.1595 http://www.specialneedslawyer.biz

×