Special Needs Trust Creates Options
FOR LOVED ONES WITH DISABILITIES
We create estate plans to protect our loved ones, and family members with disabilities are often most susceptible to financial difficulty. But safeguarding their futures is not always as simple as leaving a lump sum behind. An improperly structured estate can ultimately harm your loved one more than it helps, but a special needs trust will support and improve their lives. Many people with disabilities in the U.S. receive government assistance. But programs like Supplemental Security Income (SSI) or Medicaid have strict eligibility requirements. For example, an SSI recipient cannot own more than $2,000 in assets. Therefore, even relatively small gifts can affect their qualification for benefits. A special needs trust holds funds for your loved one without impacting their eligibility for government programs. A person can fund the trust with as many or as few cash or property assets as they’d like. A special needs trust will grant your family member additional resources without restricting their access to otherwise costly support services, medical care, or housing.
Under a special needs trust, your loved one with a disability is a beneficiary, and they will not have direct access to the trust. You must also designate a trustee, a third party who controls and distributes the funds. Depending on your situation and preferences, the trustee can be a trusted family member or a third-party paid administrator. The trustee cannot give cash directly to the beneficiary but can use the assets to purchase items and services to improve their quality of life. Many people use special needs trusts for out-of-pocket medical expenses, a home, bills, or recreation. A special needs trust can even fund a vacation for your loved one! Ultimately, the trustee has fiduciary responsibility and is legally obligated to act in the beneficiary’s best interests. Special needs trusts can be complicated, and people making their estate plans have options between multiple types of trusts. A mistake can cost a loved one dearly, so it’s always wise to speak to an experienced estate planning attorney to understand your options. They can confirm a special needs trust fits your goals and will draft all necessary documents correctly to ensure your wishes are fulfilled.
WHY I CAN’T SELL YOUR BUSINESS
Recently, when I was at the NAG Conference in Austin, Texas, where many convenience store owners had gathered to share stories and experiences of what works and what does not work in their stores (which was very insightful with all the experienced operators at the conference), I was asked what I do for a living. My normal response to that question is to give them the short answer and say, “Oh, I sell convenience stores around the country,” which is a nice and simple answer. But the truth of the matter is I really don’t sell convenience stores. It is very rare that I get the opportunity to sell a convenience store. You see, the only person who can sell a convenience store is the owner of the convenience store. It has to start inside the mind of the owner before anything can happen. When we were updating our website, a video production company interviewed me and asked a lot of questions about the process of selling a business, some of the things a business owner should do before selling, and how the selling process works. One of the questions was about the hardest business I had ever sold. I immediately gave a two- minute video presentation stating that the hardest business I ever sold was my own. (To watch this video, go to TerryMonroe.com/
videos ) Even though I have owned more than 40 different businesses, there was one business I had started from scratch and grew it into a thriving business with 155 locations in 27 states and Canada with hundreds of employees. I thought the business was my baby, as a lot of business owners think. I thought my employees loved me and I loved them. So, the thought of selling the business was gut-wrenching. It made me sick thinking about all my employees and how my selling the business would affect their lives. I struggled with the decision to sell the business. But finally, after I looked at all the facts, I made the decision to sell: It was the right time because not only would I get top dollar for my business, but my employees were going to be better off with the new owner because they could offer them more benefits and security than I knew I could. Now, as they say, the rest is history. I did sell at the right time, I was able to get top dollar for my business, and my employees did just fine. I also found out that my employees didn’t love me as much as I thought they did because right after I sold, they seemed to love the new owner better than me. But that was okay, too, because I found out I didn’t love them
as much as I thought I did, either, and I went on to open more businesses and hire more employees I liked better than the last ones. My point in sharing this story is that when it comes to selling a business, it all begins in the owner’s mind. I talk about this in my book, “Hidden Wealth: The Secret to Getting Top Dollar for Your Business.” There are several chapters on how hard a decision it is to make when it comes to selling your business and how other business owners have dealt with the same situation. Ultimately, what I really am is a matchmaker. My goal is to get top dollar for my seller’s business by matching them with the right buyer. When I say the right buyer, I am referring to the kind of buyer who has the financial ability to complete the purchase, doesn’t try to do a bait and switch on the stores we are selling, isn’t interested in trying to cherry-pick my seller with only wanting their best stores, and understands they are acquiring an established business. So, maybe I should change the title on my business card to “Mr. Matchmaker: Putting Business Sellers With Financially Capable Buyers Who Pay Top Dollar & Get the Deal Closed.” Why not? It has been working that way for a lot of years.
–Terry Monroe
2
WWW.TERRYMONROE.COM
800.805.9575
Made with FlippingBook Ebook Creator