April has been set aside by advocacy groups as Autism Awareness Month. We would like to do our part here on the blog and suggest that you take some time this month to learn about how autism is affecting families throughout our community and around the world.

This is a disorder that directly or indirectly touches a significant percentage of Americans. As many as 1.5 million people have been diagnosed with an autism spectrum disorder, and the presence of the disability is growing.

The financial impact of autism is considerable. It can cost millions of dollars to provide care for someone with autism throughout the entirety of his or her life.

Government benefits are the lifeblood of many people with disabilities who need expensive care. Supplemental Security Income provides an ongoing infusion of  cash, and the Medicaid program will often times pay for care and treatment.

When you are planning your estate you must understand the guidelines that these programs work with regarding eligibility. Someone with a great deal of money would not qualify for Medicaid because this is a program that is designed to help those with significant financial need.

If a well-meaning relative was to leave a direct inheritance to someone with special-needs loss of benefits could be the unintended consequence.

As an alternative you could convey resources into a supplemental needs trust. These assets can be used to address certain needs without counting against the beneficiary when Medicaid is doing its evaluations.

The above is some food for thought from an estate planning perspective. On a more personal level, take a moment to visit the Autism Speaks website to learn more about autism during the month of April.

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

Even people who have children with special needs often think that they do not need to worry about advanced estate planning tools unless they have a large estate. However, this is a big mistake. Estate planning is just as important for parents with children who have special needs as it is for the extremely wealthy, if not more so.

The costs of taking care of a person with special needs can be astronomical. Autism, for example, is estimated to cost about $33,000 a year for one individual. Government programs will pay for expenses, but the problem with them is that they have very low maximum wealth limits that disqualify many people with special needs from qualifying for assistance. SSI is not available if the person has more than $2,000 in available assets. This means that if parents leave an estate to a special needs child, the child will first have to spend down the estate before SSI will be available.

This problem can be avoided through estate planning. Parents can utilize a special needs trust. It’s a way to leave an inheritance for children with special needs that will not disqualify them from receiving government assistance. Even if you do not have great wealth, if you have a child with special needs, you need to see an estate planning attorney to learn about special needs trusts.

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

An old saying goes that every child is special in their own way, but some children are more special than others. It is true in some ways. However, parents of children with special needs do not necessarily see things that way all the time. To them, their children are no more special or unique than any other children. All children are unique and they all have different levels of ability. All parents learn to adjust their expectations to the abilities of their children. Parents of children with special needs do the same thing.

There is a way that the saying is true. Children with special needs often require more personal care and financial support. This puts parents in a difficult position. They need to find the resources to take care of their children. The government helps a little bit, but not nearly enough. An even bigger concern is how the children with special needs will be taken care of if something happens to the parents.

That’s where estate planning comes in. An estate planning attorney can help parents of children with special needs to plan for the care of their children after the parents pass away.

We are grateful you follow us and value your comments and input.  You Can Also Find Us Online: Facebook | Twitter | LinkedIn Thanks again.

Ryan M. Denman and Dennis D. Duffy

Duffy Law Office

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

Parents of children with special needs know that it is more difficult to raise their children than it is to raise other children. That is not to say that it is worse. It just has more difficult challenges that need to be overcome. Estate planning when you have children with special needs is no different. It is more difficult.

One of the difficulties is that children with special needs often need so much financial assistance that their parents do not have many financial assets to leave for the children’s care. This causes many families to worry how they can make sure their special needs children have the necessary monetary support if something happens to the parents. One solution that many come up with is to take out a life insurance policy and name the special needs child as a beneficiary. This is a big mistake. The money from the policy can be used to care for the child, however, it could also disqualify the child from receiving government assistance.

If you have a child with special needs, talk to an estate planning attorney about a supplemental special needs Trust. If created properly, it will not disqualify your child from receiving necessary government assistance.

We are grateful you follow us and value your comments and input.  You Can Also Find Us Online: Facebook | Twitter | LinkedIn Thanks again.

Ryan M. Denman and Dennis D. Duffy

Duffy Law Office

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

Parents of children with special needs often feel like they are constantly having to struggle to get their children the support the children need just for basic living. Special needs children face problems getting an appropriate education. They face problems finding a supportive and appropriate working environment. They face problems getting appropriate medical care and living situations. It is often only the parents of the special needs children who are dedicated to finding solutions to these problems.

Unfortunately, the problems are getting worse instead of better. They are not getting worse because of a lack of societal caring or understanding about children and adults with special needs. Society is generally more aware of the struggles of special needs individuals today than it ever has been in the past. Great strides have been made towards ending discrimination against people with disabilities. However, the problems are getting worse because of a lack of money to meet the needs of disabled Americans. With the economy down, government and private funding has been reduced.

If you have a child with special needs, then you should consider what will happen to your child when you pass away. Will the child have enough financial support to meet his or her needs? Talk to an estate planning attorney about what you can do to make sure the answer to that question is “yes.”

We are grateful you follow us and value your comments and input.  You Can Also Find Us Online: Facebook | Twitter | LinkedIn Thanks again.

Ryan M. Denman and Dennis D. Duffy

Duffy Law Office

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

Planning for the continued care of special needs children is never easy, but a proposed law in the House of Representatives could make it a little less challenging for military retirees. The Disabled Military Child Protection Act, House Bill 4329, changes how military retirees can use their pensions in estate planning for their disabled children.

Under the current law, military retirees can put up to 55% of their monthly pensions aside to be used as a stipend for family members when the retiree passes away. This stipend can complicate special needs planning as it counts as income that could disqualify a special needs child or adult from receiving government benefits. The Disabled Military Child Protection Act proposes to allow military retirees to elect to have their retirement benefits transferred to a Special Needs Trust upon their death. The Trust can then be used for the supplemental care of a special needs child without disqualifying that child from receiving government benefits.

The Disabled Military Child Protection Act is a step in the right direction. However, it is still a long way from becoming law and more is needed to protect the special needs children of military personnel and others. If you have a special needs child, talk to an estate planning attorney about your options to provide continued care for your child.

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

 When handling special needs planning for your child, you will be forced to make many difficult decisions about your child’s future. You need to make sure that all aspects of your child’s care are taken into consideration.  This will allow him or her to live a better life.  With the use of a letter of intent, you can leave extra care instruction, so that all of his or her needs are met.  Take a look at the information below, to learn more.

Consider including the following in your letter of intent

With the use of a letter of intent, you can provide as much as instruction as you’d like.  This gives you full control, so that you’re able to provide the tools and information needed so that your child can have a great future.  Consider including the following in your letter of intent.

• A list of family members and friends who know your child well, as well as emergency contact information
• Information related to your child’s medical needs, including medication needs, and medical professional contact information
• Information on your child’s specific needs, including everyday activities and daily routines
• Your child’s interests, personality traits, dislikes, and other information that relates to his or her preferences
• Your values, beliefs, and wishes for your child, as well as information on how you wish he or she should be raised
• Your child’s future goals and wishes for education and employment

With a letter of intent, you can best ensure that all of your child’s needs are met.  You can also help your child’s guardian provide the best care possible.  If you have yet to create a letter of intent, speak with your estate planning attorney about this planning tool.

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

When it comes to getting appointed as guardian of a loved one, just how disabled does the person need to be before the court will decide that they need a guardian?

The rules concerning guardianship of an adult are stringent due to the fact that when a guardianship is appointed, it takes away many of the rights that someone has. Once there is a guardian they can control where a person lives, what they do, when they receive medical treatment, etc. Due to the seriousness of appointing a guardian over an adult citizen, the court must find that the person is mentally incapacitated.

The general guideline to determine if someone is mentally incapacitated they must be severely limited in their ability to process information and to communicate. This disability must bad enough that the person can no longer attend to what is required to ensure their safety and physical well being. This means that the person cannot perform the tasks that would be necessary to ensure that they got health care, food, shelter, clothing, personal grooming, etc.

The impairment usually has to be due to the person’s ability to think or communicate. What this means is that even if you are completely paralyzed, as long as you can think clear enough to make decisions and have a means of communicating those decisions, the court will not appoint a guardian.

Although the rules regarding a guardianship appointment are strict, it is essential to understand that the reason for guardianship in the first place to protect someone who is vulnerable. If a judge sees that someone is at risk for some type of injury, they may appoint a guardian, even if the person’s condition does not meet the exact rules according to the law books.

To best understand how guardianship works and if it may be a necessary step to protect a loved one, you will want to contact an attorney that specializes in elder law for advice. An attorney can advise you on what steps to take to gain guardianship over your loved one, or if it is even something that you should do at all.

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

If you’re a parent who has taken the time and energy to create an estate plan, you should be commended for your initiative and perseverance for ensuring your children and grandchildren are properly cared for when you are gone. If you have not yet created an estate plan, doing so could be one of the most important actions you can take on behalf of your children’s future well being. A properly drafted estate plan designates who will care for your minor children upon your death, as well as providing for the smooth transfer of wealth to your children. Many parents assume that making sure a child is financially secure after they are gone means leaving the assets outright to the children. For many reasons, such as a child’s inability to manage finances, outright distribution of your assets to your children may not be the most prudent option. This becomes especially true if any of the beneficiaries of your trust estate have, or develop in the future, special needs and require the assistance of government aid.

There are generally two types of government assistance: Employment-based assistance and need -based assistance. Employment-based assistance is those benefits available to an applicant based upon the work history of the applicant or a close relative. Within this category you would find Social Security and Medicare. In contrast, need-based assistance is offered, generally, to lower-income applicants only. Need-based assistance, such as Supplemental Security Income, or “SSI”, and Medicaid, has stringent income and resource requirements for receiving financial assistance. Leaving assets outright to a special needs child could render them ineligible to receive otherwise valuable government assistance until those assets are exhausted. But what is a parent to do to avoid this result?

One option is to disinherit the special needs child completely, thereby allowing the child to receive aid from the government they would otherwise not be able to receive with an inheritance. Although the parents could instruct their other children to care for the special needs child, there is no guarantee that this will be done. Additionally, there is no assurance that the government program will continue in existence or will provide the expected level of assistance. Finally, and possibly most significantly, the psychological effects of disinheriting the child could be devastating to the child and the parents during their lifetimes. Therefore, for most parents this option is not an option at all.

A second and more viable option for fulfilling a parent’s desire to care for a special needs child without interfering with his or her ability to receive government assistance is through the use of a properly drafted trust. Special provisions can be included in your trust limiting the child’s access to the trust assets and, hence, the inheritance’s effects upon assistance eligibility.

As any mandatory distributions from a trust will be taken into consideration in determining a child’s eligibility for government assistance, the Trustee of your trust should instead be given full discretion to distribute income and/or principal for the benefit of a special needs beneficiary. In this manner, only those assets actually distributed are counted towards qualification. If the trustee does decide to distribute trust assets for the benefit of a special needs child, it is important that the trust document limit such distributions to only supplemental purposes. Distributions for the support of the child, such as for food, clothing, shelter or routine medical care, will be considered when determining the child’s eligibility for aid. Therefore, distributions for the beneficiary’s support should be prohibited. It is important to state clearly your intention that distributions supplement, but not diminish, any form of government or private support that a beneficiary is then receiving or becomes eligible to receive. Although this may seem to limit distributions drastically, your child still may receive trust assets for his or her comfort and general welfare.

Benefit planning is a highly specialized area of the law. The rules and requirements vary from state to state and failing to be aware of your state’s law can severely hinder your child’s chances of receiving government assistance. Some states have introduced legislation allowing trust assets to be accessed where certain needs of a beneficiary are not being met, unless the trust clearly states that the statute is inapplicable. Therefore, it is imperative that you consult with a qualified estate planning attorney to discuss your particular needs and to incorporate any unique provisions into your trust required by your state. Failing to include special needs provisions in your estate plan, or failing to have them drafted by a knowledgeable estate planning attorney specializing in benefits planning, could result in the loss of valuable government assistance for your special needs beneficiary.

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Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

The special needs trust is something that a lot of people are unfamiliar with, including some people that have special needs children. If you have a loved one that is disabled, you will want to find out as much as you can about special needs trusts.

A special needs trust is a legal entity that is created for the specific purpose of holding in trust, assets and money for someone that is disabled. The person creating the trust will name a trustee who will take care of handling the assets and money in the trust and distributing them according to the requirements of the trust. Most special needs trust are created in a way that the distribution of money and assets are restricted so that the person with special needs is not disqualified from receiving government assistance.

There are two different types of special needs trust, the self settled special needs trust and the third party trust. The self settled trust would be a trust created by the beneficiary; this is common if someone is injured in an accident and receives a large settlement. The trust would be created in order to hold the money received in the settlement so that any government assistance the person is receiving would not be affected.

The third party special needs trust is the type of trust that is created by a parent or a grandparent, and will hold assets meant for a loved one. This type of trust is often part of the estate plan and is meant to hold assets for the beneficiary.

The trustee that handles the special needs trust must be familiar with how they can distribute money and assets without causing the disabled person to become disqualified. Distributions from the trust cannot pay for any services that the government is paying for, such as housing, covered medical cared, food, etc.

The special needs trust can pay for supplemental care, such as an in home caregiver, dental care, and clothes. The trust can also own a home that the disabled person is living in, but to maintain benefits the person must be paying some type of rent for the home.

If you have a loved one that is physically or mentally disabled, you may want to consider creating a special needs trust for them; this is the safest method of leaving an inheritance without disrupting government benefits.

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.