Special Needs Trusts

by Elias, Stephen

• ISBN13: 9781413301458
• ISBN10: 1413301452
• Edition: CD
• Format: Paperback
• Copyright: 2005-06-30
• Publisher: Nolo

Summary

This book is about leaving property to a loved one with a disability who likely will require long-term support and medical assistance under the SSI and Medicaid programs. This might be a son with Down syndrome, a daughter with Cystic Fibrosis, a niece or nephew with severe autism, a grandchild with schizophrenia, or any other person with a similarly disabling condition that will (or may) require a lifetime of subsidized support and medical care. A special needs trust can benefit anyone over 65 and anyone of any age with a disability that makes them eligible for federal SSI and Medicaid benefits.

Table of Contents

Introduction
How a Special Needs Trust Can Help Your Family	ii
What This Book Can Do	ii
Will You Need a Lawyer?	iii
What This Book Cannot Do	iv
Providing for a Disabled Loved One With a Special Needs Trust
Why It's Usually a Bad Idea to Leave Money Directly to a Disabled Loved One	2	(3)
How a Special Needs Trust Can Help	5	(1)
Who Can Benefit From a Special Needs Trust	5	(1)
Who Can Set Up a Special Needs Trust	6	(1)
Alternatives to a Special Needs Trust	7	(1)
How the Trust Works---Nuts and Bolts	8	(7)
Terminating the Trust	15	(5)
Who Can Benefit From a Special Needs Trust
Someone With a Permanent Disability	20	(1)
Someone Who May Get Better	21	(2)
Someone Who May Need a Special Needs Trust Later	23	(1)
Someone Who Is Eligible for Medicare or SSDI	24	(4)
How Trust Funds Can (and Cannot) Be Used
SSI Income and Resource Limits: An Overview	28	(2)
Assets in the Special Needs Trust	30	(1)
What Trust Funds Can Pay For	31	(3)
Gifts of Cash	34	(2)
Payments for Food or Shelter	36	(3)
Gifts of Food or Shelter From Other Sources	39	(1)
What the Trustee Cannot Pay For: Countable Assets	40	(2)
Getting Money Into a Special Needs Trust
What Assets to Put Into a Special Needs Trust	42	(1)
How Much Money Will Your Loved One Need?	43	(1)
How to Leave Money to a Special Needs Trust	44	(7)
Adding the Beneficiary's Property to the Trust	51	(3)
The Trustee's Job
The Trustee's Basic Duties	54	(2)
Working With a Guardian or Conservator	56	(1)
Investing Trust Property	57	(1)
Spending Trust Money for the Beneficiary	58	(7)
Managing a Remainder Beneficiary's Property	65	(1)
Preserving Eligibility for SSI and Medicaid	65	(4)
Paying Taxes	69	(1)
Going to Court	70	(1)
The Trustee's Duties Letter	71	(3)
Choosing a Trustee
An Overview of Your Options	74	(1)
Signing Up for a Pooled Trust	74	(1)
The Ideal Trustee	75	(5)
Naming an Individual Trustee	80	(2)
Naming Cotrustees	82	(2)
Hiring a Corporate or Professional Trustee	84	(2)
Naming Alternate Trustees	86	(2)
Joining a Pooled Trust
An Overview of Pooled Trusts	88	(3)
Can You Use a Pooled Trust?	91	(3)
How Pooled Trusts Work	94	(6)
Joining a Pooled Trust	100	(3)
What Happens When the Trust Ends	103	(3)
Creating Your Special Needs Trust
Drafting the Trust Document	106	(17)
Making the Trust Legal and Effective	123	(1)
Keeping the Special Needs Trust Up to Date	124	(1)
Sample Special Needs Trust Language	124	(8)
Adding the Special Needs Trust to a Will or Living Trust
Should You Make a Will or Living Trust?	132	(2)
If You Already Have a Will or Trust	134	(3)
Adding a Special Needs Trust to a Revocable Living Trust	137	(13)
Adding a Special Needs Trust to a Will	150	(2)
Using a Will or Trust to Leave Property to a Pooled Trust	152	(3)
Sample Revocable Living Trust With Special Needs Trust	155	(13)
Where to Get More Help
Lawyers	168	(4)
Paralegals	172	(1)
Certified Financial Planners	173	(1)
SSA and Medicaid Personnel	173	(1)
Keeping Up to Date	174	(3)
Books	177	(20)
Glossary
Appendix A Pooled Trusts
Appendix B Letter to Trustee/Trustee's Duties
Trustee's Duties Letter	197	(1)
Managing a Special Needs Trust	198	(28)
Appendix C Sample Beneficiary Information Letter
Appendix D How to Use the CD-ROM
Installing the Form Files Onto Your Computer	226	(1)
Using the Word Processing Files to Create Documents	227	(3)
List of Forms Included on the Forms CD-ROM	230
Index