Specific transaction (Transaction authorized by court without appointing guardian). A specific transaction is a court that authorizes or directs a third party to complete an action or series of actions related to another’s person’s property. A specific transaction can only be ordered if the court determines that there is a legal basis for guardianship. This means that a petition for guardianship must be filed, and the court must determine that 1) the person does not have capacity to manage their property and affair effectively, and 2) they have or may be entitled to property or benefits that require proper management. If the court finds a legal basis, it can order a specific transaction as an alternative to a full guardianship of the property. This would allow the person to have their needs met without stripping them of their rights. Estates & Trusts Art., § 13-204 Specific transactions may be helpful for patients who have a limited need that cannot be met by another alternative to guardianship. Examples of specific transactions include: • Authorizing access to the patient’s financial records (e.g., bank records needed to apply for medical assistance) • Applying for or recertifying a person’s eligibility for benefits • Setting up direct deposit or automatic bill payment • Restricting another person’s access to the patient’s accounts • Selling property to help the person become eligible for Medicaid or other income-based benefits
able to establish one or select a person to do so on their behalf, a legally authorized representative can. An agent under a financial power of attorney can establish and manage an account. If the beneficiary does not have an agent, the following people, in order of priority (i.e., if one category does not exist, the next category can), may be able to establish or maintain an ABLE account: • A guardian or conservator. •Spouse
•Parent •Sibling • Grandparent • Representative payee appointed by the Social Security Administration
These individuals cannot serve as a legally authorized representative if the beneficiary has obtained a peace or other protective order against them, or if they have been held civilly or criminally liable for financial exploitation. 26 U.S.C.A. § 529A; Md. Code, Education Art., § 18-19C-01 et seq. Trusts including special needs trusts. Trusts are legal arrangements in which someone, called a trustee, holds and manages property for the benefit of another person, called the beneficiary. A guardian can but is not needed to create a trust. A guardian is also not needed to manage property that is held in trust. There are different types of trusts. They can be general or for a specific purpose. Special Needs Trusts are specifically for people with disabilities. Property held in this type of trust does not count against a person for purposes of qualifying them for Medicaid or other income-based public benefits (SSI, SNAP, housing subsidies, etc.). Md. Code, Estates and Trusts, § 14-404 Banking services. If the patient or their authorized representative has trouble paying bills on time or managing income, banking services, including direct deposit, automatic bill payment, credit freezes, authorized signers, and accounts with shared access can be set up. If the patient or their representative is unable to or unwilling to set up these services, a specific transaction may be an option.
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