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ALTERNATIVES TO A THIRD PARTY SPECIAL NEEDS TRUST

Posted by: Begley Law Group

by Thomas D. Begley, Jr., CELA There are a number of alternatives to a Third Party Special Needs Trusts. These include the following: Disinherit a Child. The problem with this strategy is that one cannot be certain that public benefits, as we know them today, will continue forever. Many public benefits have been cut back in recent years and there is no guarantee that current benefits will not be reduced as well. Many parents who have severely disabled children, whose needs are covered by public benefits, will consider disinheriting the children, but they should be made aware that current public […]

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Filed under Life Care Planning, Special Needs Planning, Special Needs Trusts.

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ABLE ACCOUNT, THIRD PARTY SPECIAL NEEDS TRUST AND POOLED TRUST: COMPARE

Posted by: Begley Law Group

by Thomas D. Begley, Jr., CELA Below is a chart comparing an ABLE Account with a Third-Party Special Needs Trust.     ABLE ACCOUNT THIRD PARTY SPECIAL NEEDS TRUST OR POOLED TRUST Onset of Disability Qualifying disability exists prior  to age 26   No requirement Age of Beneficiary   No requirement No requirement Who May Establish   Beneficiary, parent, guardian, agent Anyone except beneficiary Number of Accounts   One per beneficiary Unlimited Fees   Financial institution fees Attorney and trustee fees Contribution Limits $14,000 per year (federal gift tax limit); total capped at state limit for 529 college savings accounts; SSI payments suspended when assets total $100K   Unlimited Investment Options Investment strategies may be changed […]

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Filed under Estate Planning, Life Care Planning, Medicaid Planning, Special Needs Planning, Special Needs Trusts.
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ABLE ACCOUNTS ARE COMING TO NEW JERSEY

Posted by: Begley Law Group

by Thomas D. Begley, Jr., CELA New Jersey has passed the Achieving a Better Life Experience ACT (“ABLE”). While the Act has passed, it will take some time to implement. Many commentators believe that by the end of the year accounts will be authorized. Under the ABLE Act, people with disabilities and their families may set up special savings accounts similar to 529 Plans to be used for disability-related expenses. Earnings on these accounts are non-taxable. Generally, if the fund does not exceed $100,000, it will not be counted for Supplemental Security Income (“SSI”) purposes. If the fund exceeds $100,000 […]

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Filed under Estate Planning, Estate Planning, Medicaid Planning, Special Needs Planning.
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SEVEN PLANNING CONSIDERATIONS IN THE CONTEXT OF SELF-SETTLED SPECIAL NEEDS TRUST

Posted by: Begley Law Group

by Thomas D. Begley, Jr., CELA Availability. Assets in a Self-Settled Special Needs Trust (“SSSNT”) are not considered available for Supplemental Security Income (“SSI”) or Medicaid eligibility purposes. The reason is that the trustee is given sole discretion with respect to distributions from the trust. The beneficiary cannot control distribution or revoke the trust. Special needs language should be included for guidance to the trustee with respect to distributions. Transfer of asset penalty. There is no transfer of asset penalty for SSI and Medicaid, because there is a statutory exemption under 42 U.S.C. § 1392b and 42 U.S.C. § 1396p(d)(4)(A). Payback. A […]

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Filed under Special Needs Trusts, Special Needs Trusts.

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