RED FLAGS FOR SPECIAL NEEDS TRUSTS
In May of 2012 the Social Security Administration (“SSA”) changed the POMS with respect to reimbursement to family members for expenses incurred in visiting a beneficiary of a first-party special needs trust. At about the same time SSI recipients began receiving notices that their benefits were being terminated, because their trusts provided for payments to…
PLANNING FOR PEOPLE WITH DISABILITIES
Some 43 million Americans have one or more physical or mental disabilities.[1] This number is increasing as disabilities such as Autism and Alzheimer’s disease become more prevalent. Disabilities do not discriminate on the basis of age, race, or national origin. Some individuals with disabilities are wealthy, some are poor, many are middle class. An elder…
THE USE OF TRUST PROTECTORS IN SPECIAL NEEDS TRUSTS FOR PERSONAL INJURY VICTIMS
Family members often want to be the trustee of their children’s special needs trusts established to hold litigation proceeds. This almost inevitably ends in disaster, because the trustee must be familiar with SSI Rules, Medicaid Laws and Regulations, Tax Law, must have investment management expertise, must have only the interest of the disabled beneficiary at…
Limitations on Special Needs Trusts
BACKGROUND Many clients who receive personal injury settlements are receiving important public benefits, such as SSI and Medicaid. SSI is an income stream that pays an individual monies intended to be used for food and shelter. For 2015, the maximum federal benefit rate is $733. In New Jersey, there is a state supplement of $31.25….