Are Special Needs TrustsAlwaysAppropriate?
Attorney Craig Hersch Reviews the Considerations
We all want to care for the ones we love after we pass away, and this desire takes on additional importance when you have a family member with a disability. In this piece originally published in the Sanibel Island Sun, attorney Craig Hersch reviews how a trust may or may not help those in this situation. You can read the full version of “Are Special Needs Trusts Always Appropriate?” at FloridaEstatePlanning.com . Carl is a nephew of my clients. He’s 23 years old and has learning and physical disabilities. To protect Carl, several professionals told his parents to see me about building a special needs trust into their estate. A special needs trust in Florida describes any trust designed to protect a physically or mentally disabled beneficiary’s eligibility for need-based government benefits, such as Medicaid or Supplemental Security Income (SSI). They include restrictions on how funds may be used, ensuring that distributions do not disqualify the recipient from government assistance programs. Medicaid has a low ceiling on a recipient’s countable assets — approximately $2,500 this year. Further, the individual cannot have a gross monthly income exceeding $2,532. However, assets held by a Florida special needs trust are not counted for purposes of Medicaid eligibility, so long as the distribution does not duplicate Medicaid’s assistance.
needs provisions by providing additional benefits such as personal grooming, clothing and dry cleaning,
computers, televisions, musical instruments, companionship, housekeeping and cooking, medical insurance, and medical therapies and equipment.
Are special needs trusts always appropriate? That depends on whether the recipient’s inheritance is sufficient to provide for them for their lifetime. Since Medicaid’s aid is not terribly generous, a wealthy client may wish to forgo the eligibility concerns and not constrain the trustee from making a distribution. For example, if a beneficiary will receive several million dollars, it might be wise to create a general needs trust that can later be converted into a special needs trust. There are many other factors to consider when determining whether a special needs trust is appropriate for a disabled beneficiary. Rather than directing your attorney to draft one into your plan, ask if qualifying for government aid is worth the restrictions.
If it does, the trust distribution may disqualify the beneficiary. A special needs trust can supplement the government’s basic
INGREDIENTS
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1 lb spring potatoes, halved
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2 handfuls cherry tomatoes 1 tbsp balsamic vinegar
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2 tbsp olive oil (divided)
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8 asparagus spears, trimmed and halved
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2 5-oz salmon fillets 1 handful fresh basil
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DIRECTIONS 1. Preheat the oven to 400 F. 2. In an oven-proof dish, combine the potatoes and 1 tbsp olive oil. Roast for 20 minutes. 3. Remove the dish from the oven and add the asparagus. Toss, and bake for 15 more minutes. 4. Remove the dish from the oven and add the cherry tomatoes. Toss. Drizzle with balsamic, then nestle the salmon fillets into the vegetables. Drizzle with the remaining oil, and bake for 10–15 minutes. 5. Remove the dish from the oven, garnish with basil leaves, and serve!
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