special needs trust
DESCRIPTION
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.TRANSCRIPT
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ESTATE PLANNINGFOR FAMILIES
WITH PERSONSWITH DISABILITIES
© Paul A. Nidich, J.D., LL.M.Suite 365
4555 Lake Forest DriveCincinnati, Ohio 45242
513.563.1595http:/www.specialneedslawyer.biz
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THE PRIMARY CONCERN OF FAMILIES WITH MEMBERS WHO HAVE DISABILITIES:
“What will happen to our _________
when we’re gone?
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THE ANSWER
SUPPLEMENTAL NEEDS PLANNING
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SUPPLEMENTAL NEEDS PLANNING –
PURPOSE: To answer the question “What will happen when we’re gone?” with a well-thought out plan!
and
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To ensure the availability of governmental resources to maximize the quality of life of the individual with disabilities.
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PRELIMINARY QUESTIONS TO DETERMINE THE TYPE
OF ESTATE PLAN WHICH IS MOST APPROPRIATE FOR
YOUR SITUATION
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PRELIMINARY PLANNING QUESTION - I
Will the person with disabilities likely be able to earn enough money to support himself or herself?
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ACTION:
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.
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ACTION:
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.
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PRELIMINARY PLANNING QUESTION - II
If it is unlikely that the person with disabilities
will be able to earn enough money to support himself or
herself . . .
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ACTION:
CREATE A SUPPLEMENTAL NEEDS TRUST
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WHY?
To qualify for or continueto qualify for
governmental benefits.
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GOVERNMENT BENEFITS
Supplemental Security Income (SSI)
MedicaidAdult Disabled Children Program (DAC)
Medicare
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Food stampsCase ManagementHousingEmployment Support
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TRUST PLANNING
Living TrustDiscretionary Trust Drafted Supplemental Needs
TrustStatutory Supplemental Needs
Trust Pooled Trust “Sibling” Trusts
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LIVING TRUST
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.
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DISCRETIONARY TRUST
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:
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DISCRETIONARY TRUST
1) It keeps too much money from going into the supplemental needs trust at one time, and
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.
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SUPPLEMENTAL NEEDS TRUST (DRAFTED)
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).
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SUPPLEMENTAL NEEDS TRUST (STATUTORY)
While the statutory supplemental needs trust might fit some situations,
it does have some negatives. The amount
of money that
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SUPPLEMENTAL NEEDS TRUST (STATUTORY)
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.
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“SIBLING TRUST”
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.
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INTERVIEW THE PROSPECTIVE ATTORNEY
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.
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INTERVIEW THE PROSPECTIVE ATTORNEY
Find out, for example, how long the attorney has been involved in supplemental needs trust planning. Ask
why the attorney does supplemental needs
planning.
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INTERVIEW THE PROSPECTIVE ATTORNEY
Ask the attorney to explain the difference between the
statutory supplemental needs trust and other kinds
of supplemental needs trusts.
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INTERVIEW THE PROSPECTIVE ATTORNEY
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.
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MY SUPPLEMENTAL NEEDS TRUST “PACKAGE”
Wills for Husband and WifeFinancial Powers of
Attorney for Husband and Wife
Health Care Advanced Directives for Husband and Wife
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MY SUPPLEMENTAL NEEDS TRUST “PACKAGE”
Revocable Living TrustIrrevocable Supplemental Needs Trust
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DIAGRAM OF TRUST PLAN I TYPICALLY USE
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WHAT DOES THIS COST?
The average cost for this kind of estate
plan in the Cincinnati area is probably
$2,500 to $3,500.
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WHAT DOES THIS COST?
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.
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WHAT DOES THIS COST?
However, because of the rising costs of
everything, I probably will be increasing my
fee to $1,500 after the first of the year.
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WHAT DOES THIS COST?
Perhaps this will give you an added incentive to
get this extremely important planning done,
if you would like me to prepare your plan.
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THANK YOU FOR YOUR TIME!
©Paul A. Nidich, J.D., LL.M. (Taxation)4555 Lake Forest Drive
Suite 365Cincinnati, OH 45242
513.563.1595http://www.specialneedslawyer.biz