Special Needs Trusts in Concord NC

The first step in setting up a trust for your loved one is choosing a trustee. This may be the most difficult issue for a grantor to decide on, and therefore all options should be discussed thoroughly with an attorney.

Most people naturally look to family members when choosing a trustee. However, the individual responsible for a special needs trust has the additional responsibility of planning distributions so that the beneficiary does not lose eligibility for public benefits. Family members may or may not have the necessary skill, time and selflessness to serve as trustee. Therefore, depending on the individual situation, consideration of a professional trustee may be appropriate.

Working through the types of trusts available for your loved one.

In many discussions of trusts, the terms “special needs” and “supplemental needs” are used interchangeably. However, New York state law distinguishes between the two, with a special needs trust being a trust set up for a disabled person with their own assets, and a supplemental needs trust being set up by a third party such as a parent or other family member.

Beyond this distinction, supplemental needs trusts can be divided into three categories.

Third party supplemental needs trusts.

Third party trusts can be established for a person of any age by a parent, family member or friend. This type of trust is a “discretionary” trust established for the benefit of a person with special needs whose disability establishes a long-term need for care. Since it is discretionary, the trustee must be careful how the money from the trust is spent. Upon the beneficiary’s death, any remaining assets will be distributed according to the trust agreement. The government will not have the right to recover anything from the trust.

First party supplemental needs trusts.

This type of trust is also known as a “pay-back” trust, because upon the beneficiary’s death, the remaining funds in the trust can be used by the state to pay back any Medicaid benefits accrued during their lifetime. A disabled person under the age of 65 can establish a first party trust, and they may their own funds without jeopardizing eligibility for benefit programs.

Pooled trusts created by a non-profit association.

Pooled trusts pool the resources of many beneficiaries. A non-profit association then manages the resources. Pooled trusts are significant because they may be established for people of any age. Also, a pooled trust may be established not only by a parent, grandparent, guardian or court, but also by the special needs individual.

The choice of trust, trustee and manner in which funds from a trust should be distributed is complicated, but working through the issues with an attorney will guarantee your loved one will be well cared for.

Bernard Krooks is a New York Elder Law and New York Estate Planning lawyer with offices in White Plains, Fishkill, and New York, New York. To learn more, visit Littmankrooks.com.

Article Source: http://EzineArticles.com/?expert=Bernard_KrooksThe first step in setting up a trust for your loved one is choosing a trustee. This may be the most difficult issue for a grantor to decide on, and therefore all options should be discussed thoroughly with an attorney.Here is another very helpful article I found regarding the types of trusts available for a family member with special needs.  If you need help in the Concord NC area, visit me at Insurance Resource Group.

Here is another good article about types of trusts for family members with special needs.  If you need help in the Concord NC area, visit me at Insurance Resource Group.

Establishing a Trust for Your Loved One with Special Needs by Bernard Krooks

Most people naturally look to family members when choosing a trustee. However, the individual responsible for a special needs trust has the additional responsibility of planning distributions so that the beneficiary does not lose eligibility for public benefits. Family members may or may not have the necessary skill, time and selflessness to serve as trustee. Therefore, depending on the individual situation, consideration of a professional trustee may be appropriate.

Working through the types of trusts available for your loved one.

In many discussions of trusts, the terms “special needs” and “supplemental needs” are used interchangeably. However, New York state law distinguishes between the two, with a special needs trust being a trust set up for a disabled person with their own assets, and a supplemental needs trust being set up by a third party such as a parent or other family member.

Beyond this distinction, supplemental needs trusts can be divided into three categories.

Third party supplemental needs trusts.

Third party trusts can be established for a person of any age by a parent, family member or friend. This type of trust is a “discretionary” trust established for the benefit of a person with special needs whose disability establishes a long-term need for care. Since it is discretionary, the trustee must be careful how the money from the trust is spent. Upon the beneficiary’s death, any remaining assets will be distributed according to the trust agreement. The government will not have the right to recover anything from the trust.

First party supplemental needs trusts.

This type of trust is also known as a “pay-back” trust, because upon the beneficiary’s death, the remaining funds in the trust can be used by the state to pay back any Medicaid benefits accrued during their lifetime. A disabled person under the age of 65 can establish a first party trust, and they may their own funds without jeopardizing eligibility for benefit programs.

Pooled trusts created by a non-profit association.

Pooled trusts pool the resources of many beneficiaries. A non-profit association then manages the resources. Pooled trusts are significant because they may be established for people of any age. Also, a pooled trust may be established not only by a parent, grandparent, guardian or court, but also by the special needs individual.

The choice of trust, trustee and manner in which funds from a trust should be distributed is complicated, but working through the issues with an attorney will guarantee your loved one will be well cared for.

Bernard Krooks is a New York Elder Law and New York Estate Planning lawyer with offices in White Plains, Fishkill, and New York, New York. To learn more, visit Littmankrooks.com.

Article Source: http://EzineArticles.com/?expert=Bernard_Krooks

Who Will Care For Your Disabled Child in Concord NC After You Have Passed On?

Here is another great article I found that is helpful for families who have a child with special needs.  If you need help in the Concord NC area, visit me at Insurance Resource Group.

Who Will Care For Your Disabled Child After You Have Passed On?

By Daniel P. Elliot

Every new parent-to-be has hopes and dreams for their new baby.  What happens when the birth or delivery doesn’t always fulfill these hopes and dreams? Sometimes these dreams are tempered by reality and the baby may have a disability.  Should the baby be born with a disability, the delivery staff has additional information and guidance to accommodate raising a baby with disabilities.  That is usually where the guidance ends.  What about after they have grown up? What about after the parents have passed on?   These are very scary, but very real questions that need to be asked shortly after the baby is born.

Although this is a worrisome time, feelings can range from anger and depression to joy.  The key is to take it step by step and settle in with a routine.  At this time, thoughts and attention can be focused on the long term future.  One course of action that needs to be taken is to consult with a special needs attorney to formulate a plan should the worst happen.

In the unfortunate event that the disabled child or children are left alone because of a parent’s demise, hopefully there is a will and estate planning has been developed to provide the continuation of the necessary care for the disabled individual.  If there has not been any planning for the special needs of the individual, the state will take the minimum action to attempt to accommodate the individual.  More times than naught, this care is sub-standard and can not provide a nurturing environment for the special needs individual.

An attorney which specializes in estate planning and special needs planning can alleviate all of the worry and concerns of the parents and ensure that their child will be provided for in the environment that is best for the disabled child.  Even though medical care and supervision of a disabled child can be prohibitively expensive, an effective plan doesn’t have to be expensive.  Often times the special needs planning attorney will have insights into providing financial assistance now and for the future.

Without a trust or other special needs planning in place, probate will liquidate all remaining assets to help pay for any needs of the disabled individual.  Again the disabled individual would be left behind in some sort of institution or assisted living environment at best.  This situation can most certainly be improved. The earlier a special needs lawyer is sought out and plan set in place, the better the financial care can be provided after the parents are gone to ensure the continued happiness of their child.

For more information and guidance about family and estate planning for people with special needs, sources of information such as you will find at http://www.specialplanning.net are available in your specific state and local areas.

Daniel Elliott is an independent contractor who authors articles and media on a variety of topics for diverse audiences. WebDrafter.com, Inc. (http://www.webdrafter.com) produces Website design, hosting, and search engine marketing services for many of the clients, industries and markets related to the articles and media authored by Dan Elliott. If you would like Dan Elliott to ghost write or pen an article for you or your company, please contact him with your specifications.

Article Source: http://EzineArticles.com/?expert=Daniel_P_Elliott

Special Needs Planning Mistakes-Concord NC

Here is a very informative article I found for planning with a Special Needs Child.  If you have any questions, or need help with special needs planning in Concord NC, visit me at Insurance Resource Group.

9 Critical Mistakes When Planning For A Special Needs Child
By Mark Connell

MISTAKE # 1: DISINHERITING THE CHILD

Many disabled people rely on government benefits to provide food and shelter. If you have been advised to disinherit your disabled child, remember that these public benefits provide no more than “bare bones” basic necessities. Consider establishing a Special Needs Trust to provide for quality of life expenses without interfering with eligibility for public benefits.

MISTAKE # 2: PROCRASTINATING

No one knows when they may die or become incapacitated. Planning ahead for your special needs child is especially important. Your special needs child may never be able to make up for your failure to plan. Other children without special needs can work once they’ve reached adulthood. Your special needs child, on the other hand, may not have that chance. A Special Needs Trust should be put in place NOW to protect your special needs child.

MISTAKE #3: RELYING ON YOUR OTHER CHILDREN

Special Needs Planning in Concord NC – Testamentary Vs Revocable Trusts

If you have any questions, or need help with a special needs child in your family in the Concord NC area, visit me at Insurance Resource Group.

Special Needs Planning-Testamentary Vs Revocable Trusts

by Bernard Krooks

It is important to be aware of situations where leaving money directly to your child with special needs may cause more harm than good. It is difficult to determine whether an individual with special needs will be able to make proper financial decisions for themselves, especially if they have no previous experience doing so. Leaving money directly to a loved one with special needs may cause them to lose public benefits that are currently paying for their daily and medical care. The money you leave in your Will to an heir with special needs will only cover the cost of daily living and medical care for one to three years, on average. After this time, when the assets have run out, your child will need to reapply for government benefits, and may be left with no means to cover medical expenses while they are waiting for their new benefits to take effect.

To avoid these problems, establish a Special Needs Trust which provides supplementary income to your loved one with special needs. The government cannot use this trust against them when determining their eligibility for disability and other public benefits. It is important to know that there is more than one type of special needs trust, and there are distinct advantages to each one. Make sure you choose the right one for your child with special needs.

SSDI’s Medicare Waiting Period Would Gradually Disappear Under New Legislation

As many Social Security Disability Insurance (SSDI) recipients already know all too well, there is currently a two-year waiting period from the day their applications are approved until they can begin receiving Medicare benefits. Sometimes called the “death period,” the current federal policy forces people with disabilities to either find another form of health insurance (sometimes through Medicaid, if they qualify), or go without insurance entirely while they wait for Medicare to begin. (People with ALS or end-stage renal disease receive Medicare immediately.) A new bill introduced for the third straight session of Congress hopes to phase out this two-year waiting period altogether.

The aptly named Ending the Medicare Disability Waiting Act of 2009 was recently introduced by Sen. Jeff Bingaman (D-NM) and Rep. Gene Green (D-TX). The bill proposes to gradually phase out the two-year waiting period over the next ten years, so that in 2019 all SSDI recipients will receive Medicare benefits immediately upon qualifying for SSDI.

More than 120 advocacy groups support the legislation, ranging from Mental Health America and the National Disability Rights Network to the ARC of the United States and United Cerebral Palsy. A coalition of these groups issued an open letter to the bill’s sponsors, pointing out that under the current regulations, almost 40 percent of people with disabilities have no health insurance for part of the waiting period, and 24 percent have no health insurance for the entire waiting period.

To read a press release from Sen. Bingaman’s office about the bill, click here.

To read the full text of the bill, follow this link where the article originally appeared: http://www.specialneedsanswers.com/resources/article.asp?id=6092&section=4&state=

If you have any questions about this article, or need help visit Insurance Resource Group.

Probe Finds Nursing Homes Are ‘Dumping Ground’ for Mentally Ill

Here is an important article for anyone considering nursing home care for an aging loved one.  The original article appears at http://www.specialneedsanswers.com/resources/article.asp?id=6090&section=4&state=.  If you have any questions regarding special needs in your family, please visit me at Insurance Resource Group.

Elderly nursing home residents are increasingly living alongside young and middle-age people with mental illness, with sometimes tragic results, according to a 50-state investigation by the Associated Press. It appears that in many cases this potentially dangerous trend is a violation of federal law.

Figures that the AP obtained from the Centers for Medicare and Medicaid Services through the Freedom of Information Act show that nearly 125,000 non-elderly adults with serious mental illness were living in U.S. nursing homes in 2008. This is a 41 percent increase from 2002, when nursing homes housed about 89,000 mentally ill people ages 22 to 64. Younger mentally ill people now make up more than 9 percent of the nation’s nearly 1.4 million nursing home residents, up from 6 percent in 2002, the AP found.

The AP concludes that nursing homes have become state “dumping grounds” for the mentally ill. This seems to be happening for a combination of reasons: state mental institutions are closing, there is a shortage of hospital psychiatric beds, and nursing homes have more room because today’s elderly are healthier than the previous generation and because more and more states are encouraging potential nursing home residents to continue living in the community. Also, it can be advantageous for states to place mentally ill people in nursing homes because of quirks in how the federal government pays for mental health services.

Although no government agency tracks violence by mentally ill residents against elderly residents, the AP article cites a number of recent cases, including the one of a 77-year-old Alzheimer’s patient who died when his roommate, a mentally ill man 30 years his junior, allegedly smashed him in the face with a clock radio.

“Sadly, we’re seeing the tragic results of the failure of federal and state governments to provide appropriate treatment and housing for those with mental illnesses and to provide a safe environment for the frail elderly,” Janet Wells, director of public policy for the National Citizens’ Coalition for Nursing Home Reform, told the AP.

The Omnibus Budget Reconciliation Act (OBRA) of 1987 (P.L. 100-203) mandates that patients suffering from mental illness other than dementia cannot be admitted to Medicaid-certified nursing homes unless it is shown that they need the high level of care a nursing home can provide. § 1396r(b)(3)(F) State agencies screen entering patients using a questionnaire called the Pre-Admission. Screening and Annual Resident Review (PASARR). The federal nursing home law also guarantees nursing home residents the right to be free from physical abuse.

To read the Associated Press article, click here.

New Legislation Would Give People with Special Needs an Alternative to Institutionalization

Here is a very important article for families who have loved ones with special needs.  The original article can be found at http://www.specialneedsanswers.com/resources/article.asp?id=6093&section=4&state=.  Please visit me at Insurance Resource Group with any questions.

Sen. Tom Harkin (D-IA) and Rep. Danny Davis (D-IL) recently introduced the Community Choice Act in both houses of Congress. If passed, the bill would greatly expand community services and in-home care for people with special needs who qualify for institutional level care.

Currently, all states have some form of in-home care available through what are known as “Medicaid Waiver” programs, but the programs offer different levels of services and are typically underfunded and under-utilized. According to a press release from Sen. Harkin’s office, the new legislation allows all Medicaid recipients with special needs who currently qualify for institutional-level care to receive that care at home if they choose to do so, regardless of their state’s current waiver program.