Notes

Outline

How to Administer a Special Needs Trust

MORE REFERENCE MATERIALS ON OUR WEBSITE

Statistics An estimated 20.3 million families, or 29.2 percent of all 69.6 families in the United States, have at least one family member with a disability. Some 3.8 million families, or 5.5 percent of all families, contain one or more children with disabilities. 3.4 million families have one child with a disability. Only 0.4 million families, or 0.5 percent of all families, contain more than one child with a disability.

First Steps Review the document with an            attorney familiar with with Special          Needs Trusts Meet with the beneficiary and assess his or her needs Determine what benefits the beneficiary is receiving or may be eligible for Gather all of the assets subject to the trust Get tax identification number for the trust Meet with any care managers, advisors, or fiduciaries required by the trust agreement Seek assistance and hire advisors

Duties of All Trustees Carry out the terms of the trust agreement. Loyalty to the beneficiary. Act and invest prudently. Not delegate certain Trustee responsibilities. To maintain the books and records and keep the beneficiaries reasonably informed of the trust administration.

Providing for Persons with Disabilities

Public Benefits Basics

Benefit Basics

Supplemental Security Income

Supplemental Security Income

"Two tests determine eligibility" Two tests determine eligibility  for SSI Income test determines how much is received. Resource test determines eligibility

Types of SSI Income

Basics Of SSI Eligibility Resources Anything that can be converted to cash for support is a resource. If resources exceed $2,000 on the first day of a calendar month, the beneficiary's public benefits will be lost until resources are reduced. Assets that the beneficiary does not have the legal right to demand are not counted for SSI purposes.

BASICS OF SSI ELIGIBILITY Exempt Resources A home, if the beneficiary has an ownership interest and it serves as his/her principal residence.

BASICS OF SSI ELIGIBILITY Exempt Resources Household goods all together worth no more than $2,000 market value furniture, furnishings, household equipment, personal effects  such as clothing, jewelry, items of personal care and education, musical instruments

BASICS OF SSI ELIGIBILITY Exempt Resources One automobile is totally excluded regardless of value if, necessary for employment, medical treatment, modified for operation by or transportation of a handicapped person; or is necessary to perform essential daily activities. If no exclusion applies automobile is excluded to the extent current market value does not exceed $4,500 and Any other automobiles are treated as nonliquid resources and counted against the resource limit to the extent                                                         of the individual's equity                                                      interest in the vehicle.

BASICS OF SSI ELIGIBILITY Exempt Resources Life insurance policies with cash surrender value, if their total face values amount to less than $1,500, and All term life insurance. A burial plot, or other                            burial space, worth any                           amount.

BASICS OF MEDI-CAL ELIGIBILITY If an SSI beneficiary receives at least $1 of SSI, the beneficiary then receives full scope free Medi-Cal automatically.

Benefit Basics

In-Home Support Services Services in the home to assist persons who receive SSI and/or Medi-Cal who require services in order to remain safely in their own homes. Includes personal care services, domestic services, related services (meal preparation, laundry services, shopping, etc.) and accompaniment services to medical appointments or programs. An include paramedical                                                 services and protective                                     supervision, when necessary.

Slide 21

Slide 22

Slide 23

Social Security Upon the disability or retirement of the parent, an eligible disabled child will receive an amount equal to 1/2 of the parent’s benefit Upon the death of the parent, an eligible disabled child will receive an amount equal to 3/4 what the parent’s SSA benefit.

Social Security Example Helen has been disabled from birth, and is receiving $720 in SSI monthly Helen’s father, Earl, retires and receives $1,000 a month. Helen begins to receive $500 per month Receipt of the SSA is unearned income which reduces Helen’s SSI by $480. Helen now receives $240 SSI and $500 SSA

Social Security Example Earl, dies and Helen begins to receive $750 per month Helen’s SSI is eliminated completely. Helen will lose her MediCal unless she files a Pickle Application

Slide 27

Slide 28