Clinton Special Needs Lawyer Offers Practical Tips in Setting Up a Supplemental Needs Trust

By Ronald Morton | Leave a Comment

If you have a family member with special needs, it is important to factor him or her into your estate planning.  In fact, there are “special needs trusts” or “supplemental needs trusts” which can be created specifically for this purpose.  Working with a special needs lawyer in Hinds County is  the best way to make sure that you are setting your loved one up to be cared for when you are no longer able to do so yourself.

Special needs trusts can be set up and funded in numerous ways.  The special needs trust can be either revocable or irrevocable and can spring to life upon your passing or be set up during your life.  Much will depend on how the trust will be funded.  If you are the only one to contribute then a trust that springs to life upon your death may be the best choice.  If other family members, such as grandparent, aunts or uncles will also be contributing to the trust then it makes the most sense to create the trust now.  If you are sure that the parents will be the only contributors, then you might want to consider a revocable trust, as it can be changed throughout your lifetime to reflect the choices you want to make over the course of time.

One of the biggest considerations that needs to be made is who will be the trustee.  This is the person who will administer the trust which has been created to care for your loved one.  Careful thought needs to go into choosing this person, as he or she will have a significant impact on the life of the person cared for by the trust.  The trustee will also have access to funds and will make a lot of important decisions.

Your special needs lawyer in Clinton, MS can help you to define the role of this person through your legal documents, but you still want to choose someone who is trustworthy and has your loved one’s best interests at heart.  He or she should also be very familiar with the specific needs of the person they will be responsible for, which could range from medical concerns to favorite foods and hobbies.  Additionally, you want to choose someone who has the ability to create and execute a reasonable budget.  One option is to name both a family member and a professional as co-trustees.

Of course, determining how much money needs to go into the trust is another major concern.  There are so many factors to take into consideration.  Remember that costs will likely continue to rise over time, so basing totals on today’s costs will likely not be adequate.  This is yet another reason that it makes sense to work with a special needs lawyer in Clinton. He or she will be familiar with many of the most common costs but will also be able to personalize the special needs trust so it is a good fit for your particular situation.

You may find that there are some one-size-fits-all special needs trust planning tools online, but this is an area where that option is really not a good idea.  No one has to tell the parent of a special needs child that every situation is considerably different.  Instead, choose a qualified special needs lawyer in Hinds County for the peace of mind knowing that your child will always be cared for and protected in your absence.

Things to Consider When It Comes to Special Needs Planning in Mississippi

By Ronald Morton | Leave a Comment

Families who have members with special needs have a variety of concerns that most of the population doesn’t deal with on a regular basis.  Whether you’re traveling to occupational therapy appointments, choosing the most effective medical devices, or contemplating whether to “mainstream” your special needs child, there are so many parts and pieces to keep in mind.  For that very reason, you may not have even considered the need to meet with a special needs planning lawyer in Clinton.

You spend a lot of your time and energy helping your family members with special needs to get the most out of life.  How are you going to keep that up if you become incapacitated or deceased?  Working with an experienced special needs lawyer is a really important step in making that a reality.  The attorney will help you get your affairs in order and will be able to advise you on areas that you might not even realize need attention.  Taking care of these issues now means that things are in place and ready to go should you suddenly become unable to care for your family member.

Clinton Special Needs Consideration #1 – Creating a Guardianship

You likely have very strong feelings about who you would and would not like to be responsible for your family member in your absence.  For example, you may feel that one of your adult children would be an excellent care taker while also being sure that you would not want your parents to be given guardianship.  If you don’t specify this clearly and legally, then the decision would be up to the courts, and your opinion on the matter will have no weight at all.

Clinton Special Needs Consideration #2 – Inheriting Assets

Many special needs attorneys in Mississippi will recommend that you not leave assets to your family member with special needs.  This doesn’t mean you don’t care for the person or want to recognize them in your will.  The point is, if the individual inherits assets, they can cause him or her to suddenly be disqualified from various types of assistance programs.  In fact, Medicaid could even view the acquisition of assets as a reason to go back and try to get payment for benefits paid out in the past.

Clinton Special Needs Consideration #3 – Setting Up a Special Needs Trust

Depending on your situation, your special needs planning attorney in Hinds County may recommend that you set up a specific trust for the family member.  You will also need to determine how the trust will be funded, with life insurance being a common choice.  Again, this action is intended as a way to protect the individual’s ability to qualify for certain types of benefits and public programs.  In addition to possibly providing assets and funding for the family member with special needs, this kind of trust can also name someone you trust as the legal manager of those funds.

It’s hard to overstate the importance of preparing for your loved one’s future, especially when it is apparent that he or she will be dependent upon others for a lifetime.  Working with a special needs planning attorney in Hinds County will allow you to create some peace of mind while ensuring you are in complianc

Student Loan Discharge Available for Disabled

By Ronald Morton | Leave a Comment

The average student loan for college graduates is over $23,000. Repayment of student loans has always been difficult, but for people who suffer from disabilities and little to no prospects for gainful employment, repayment can prove impossible. Everyone knows that student loans cannot be discharged in bankruptcy. However, there is an exception to student loan discharge for disabled adults that many people are unaware of.

Disabled individuals can apply for disability discharges of loans from the following programs: Federal Family Education Loans (FFEL), Perkins Loans, William D. Ford Federal Direct Loans (Direct Loans), and Teacher Education Assistance for College and Higher Education (TEACH) Grants.

To qualify the borrower must show that he or she is physically or mentally impaired, and the impairment will either result in death or that it has lasted or is expected to last more than 60 months. The statement must be supported by paperwork from the borrower’s doctor. Application for the discharge is filed with the Department of Education. If the application is approved, the loan will be conditionally discharged, provided the borrower does not engage in employment that results in income exceeding the federal poverty rate for a family of two for the next three years. Once the three-year period has passed, the loan is completely discharged.

If you know disabled individuals with student loans, pass this information along. Our firm represents elderly and disabled individuals in planning their affairs and qualification for public benefits.

Parents with special needs children must prepare for their future

By Ronald Morton | Leave a Comment

Parents with special needs children must take the necessary precautions in planning for their future care.  To plan for a special needs child’s future care, parents need to make sure they plan their estate accordingly. If parents do not execute an estate plan, a special needs child receiving social security income (SSI) could lose their benefits if they receive inheritance money or any other gift. However, if parents take the necessary steps in planning their estate, the special needs child will receive their inheritance without losing any benefits. See here.

10 Tips for Helping Families with Special Needs

By Ronald Morton |

This article examines the unique planning
requirements of families with children, grandchildren or other family
members (such as parents) with special needs. There are many
misconceptions in this area that result in costly mistakes in planning
for these special needs beneficiaries. It is therefore incumbent upon us – the client’s advisors – to ensure that clients understand all of
their options.

Continue Reading

Trustee Allowed to Create SNT After Death of Testator

By Ronald Morton |

A New York trial court recently approved a trustee’s petition to reform his
deceased father’s trust in order to protect his disabled sister’s
Medicaid benefits. In Matter of Newman (2008 NY Slip Op 50127, Jan. 22, 2008).

When he died in 1988, William Newman established a trust in his
will for his disabled daughter. The will required the trustee to use
the trust income for the daughter’s benefit and gave the trustee
discretion to spend the trust principal for her support and
maintenance. Mr. Newman’s daughter lived on her own until 2006, when
she moved into an adult care facility and qualified for Medicaid. In
order to maintain her eligibility, her brother, the trustee, then
petitioned the court to reform the trust to make it a Supplemental
Needs Trust. The guardian ad litem opposed the petition, arguing that
the trustee, who was also a remainderman, had a conflict of interest.

The court approved the petition, finding that the trust meets
all of the statutory conditions for reformation. Specifically, the
court determined: 1. that the beneficiary is disabled; 2. that the
intent of the donor was to supplement her benefits; 3. that the trust
prohibits the trustee from using the assets to jeopardize her benefits;
and 4. that the beneficiary cannot compel distributions from the trust.
Finally, the court dismissed the guardian ad litem’s argument regarding
the conflict of interest, calling the analysis "restrictive" and
contrary to the intent of the donor.

10 Tips for Helping Families with Special Needs

By Ronald Morton |

This month’s newsletter examines the unique planning requirements of families with children,
grandchildren or other family members (such as parents) with special needs.
There are many misconceptions in this area that result in costly mistakes in
planning for special needs beneficiaries. It is, therefore, incumbent upon us -
our clients’ advisors – to ensure that clients understand all of their
options.

Continue Reading