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WHAT YOU CAN DO TO
HELP A DISABLED LOVED ONE
By Martin H. Cohen
My clients frequently ask me, “How can I help my disabled child (or
grandchild) after I am gone?" They often know that if the disabled
individual receives an inheritance, he may lose Medicaid or SSI
(Supplemental Security Income) benefits.
The client may have considered one of two choices:
1. Disinheriting the disabled individual (and hoping that the individual’s
brother or sister will use a portion of the inheritance for the care of the
disabled sibling). This will protect against the loss of public benefits,
but how will the client know that any care will be provided to the disabled
loved one?
2. Establishing a trust to provide for the support and maintenance of the
disabled individual. This may seem like a good idea, but will cause him to
lose his governmental benefits.
So, how can you provide for your disabled loved one without causing him to
lose governmental benefits?
The answer is to create a "special needs trust" (sometimes referred to as a
"supplemental needs trust."). This ensures that the assets will be used for
the disabled individual during his lifetime. Thereafter, remaining assets
may be distributed to other family members.
The assets are used to supplement (but not replace) government care and
services. This may include, for example, drugs, medical procedures, dental
care, nursing and attendant care not provided by Medicaid. In addition, the
trustee may provide travel and entertainment, or even a new computer or home
theater system.
You can create a special needs trust with any type of assets, including
cash, stock, personal property, real estate, or life insurance. The parties
to the trust include the Grantor (the family member whose assets will fund
the trust), the trust beneficiary (the disabled individual), and the trustee
(the party responsible for managing and investing the trust assets).
You may include the special needs trust in a revocable living trust where,
typically, some of the assets are segregated for the benefit of the disabled
individual upon the death of the grantor. Alternatively, you may include
special-needs trust provisions in your will. In either case, you may choose
an individual or a bank as your trustee to manage the assets for the
disabled loved one.
The legal requirements for special needs trusts are found in a complex set
of federal and state laws and regulations. The attorney drafting special
needs trusts should be experienced in drafting trusts and government
programs that provide benefits for disabled individuals. In addition, he
must consider the governmental program requirements of the state where the
disabled beneficiary resides.
If you would like additional information on using a special needs trust to
provide for a disabled loved one, please call me for a free telephone
consultation at (954) 315-0355.
Mr. Cohen maintains offices
for the practice of Estate Planning, Elder Law and Disability Law in
Plantation ,
Fort Lauderdale and
Pembroke Pines for the convenience of his clients throughout
Broward County, Florida. Maps to the offices are available by following
these links.
For those of you who are
unfamiliar with South Florida geography, Broward County has 30
municipalities, including:
Coconut Creek,
Cooper City,
Coral Springs,
Dania Beach,
Davie,
Deerfield Beach,
Fort Lauderdale,
(Ft. Lauderdale),
Hallandale Beach,
Hillsboro Beach,
Hollywood,
Lauderhill,
Lauderdale Lakes,
Lauderdale-By-The-Sea, Lazy Lake,
Lighthouse Point,
Margate,
Miramar,
North Lauderdale,
Oakland Park,
Parkland,
Pembroke Park,
Pembroke Pines,
Plantation,
Pompano Beach,
Sea Ranch Lakes,
Southwest Ranches,
Sunrise,
Tamarac,
Weston,
Wilton Manors.
For information on these
cities, click on the appropriate link.
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