Posted by: Thomas D. Begley, Jr.
On June 25, 2010, the Social Security Administration (SSA) issued clarification to the POMS relating to Early Termination Provisions and Trusts.[1] It should be noted that these provisions are not effective until October 1, 2010. Until that date, this POMS is to be considered informational only. The new POMS clarifies what is an early termination provision. It states, “An early termination provision or clause would allow a trust to terminate before the death of the beneficiary. Commonly, such provisions or clauses provide for a termination of the trust when, for example, the beneficiary is no longer disabled or otherwise becomes [...]
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Filed under E-Lerts, Personal Injury Consulting, Special Needs Trusts, Special Needs Trusts.
Tags: Personal Injury Consulting, Special Needs Trusts
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Posted by: Thomas D. Begley, Jr.
Since the advent of Section 111 of the Medicare, Medicaid and SCHIP Extension Act of 2007, defendants and defense counsel are more vigorous in ensuring that all Medicare liens are paid in full from settlement proceeds and that a Medicare Set Aside Arrangement (MSA) is established where required. Unfortunately, since this area is new, many defense counsel are requiring MSAs in third party liability cases, even in instances where none is required. To avoid the establishment of an unnecessary MSA, the Begley Law Group assists plaintiffs’ personal injury firms by providing written Opinion Letters in appropriate cases stating that an [...]
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Filed under E-Lerts, Estate Planning, Personal Injury Consulting.
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Posted by: Thomas D. Begley, Jr.
A self-settled special needs trust is not appropriate in every instance where a person with a disability receives a tort recovery, an inheritance, or equitable distribution. At the initial contact, the special needs trust attorney should make a determination as to whether or not the trust is appropriate and explain to the person with a disability and/or the family the alternatives to the special needs trust. The four alternatives to establishing an individual self-settled special needs trust are to spend down, by paying bills or purchasing exempt assets, to transfer assets, to simply accept the money, or to utilize a [...]
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Tags: Personal Injury Consulting
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Posted by: Begley Law Group
The taxation of Confidentiality Agreements in personal injury settlements is becoming and increasing concern to plaintiffs and to personal injury lawyers. The issue arises out of a United States tax court case. This case involved an incident in which Dennis Rodman, a basketball player for the Chicago Bulls, during the course of a game against the Minnesota Timberwolves landed on a group of photographers and twisted his ankle. Mr. Rodman then kicked one of the photographers, Eugene Amos. Mr. Amos was immediately taken to a local hospital and the next day sought medical treatment from the Veterans Affairs Medical Center. [...]
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Filed under E-Lerts, Personal Injury Consulting.
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Posted by: Thomas D. Begley, Jr.
The appointment of a proper trustee and the drafting of appropriate removal powers are of critical importance in this type of trust. Very often, the family considers the money to belong to the family rather than to the beneficiary of the trust. This is particularly true if there is a self-settled special needs trust for the benefit of a minor. A family member, usually a parent, often wants to be named as trustee in order to be in a position to control distributions. Such an arrangement can be fraught with peril insofar as public benefit eligibility is concerned. Additionally the [...]
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Filed under Personal Injury Consulting, Special Needs Trusts.
Tags: Personal Injury Consulting, Special Needs Trusts, Trustee
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Posted by: Thomas D. Begley, Jr.
1. INTRODUCTION Elder law attorneys acquire an expertise in trust, tax, and public benefits laws. This expertise is at the heart of our profession. In order to determine whether or not a client requires a trust and, if so, what type of trust, the attorney must have a basic understanding of trust law, tax law, and public benefits law. 2. BENEFIT PROGRAMS AFFECTING THE DISABLED In order to determine when the use of a Special Needs Trust is appropriate, it is necessary to have an understanding of government benefit programs affecting the disabled. The principal programs are: SSI Medicaid SSD [...]
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Posted by: Thomas D. Begley, Jr.
Distributions from self-settled special needs trusts are usually subject to more severe restrictions than distributions from third party special needs trusts. Many State Medicaid Agencies have regulations or internal policies governing how these distributions can be made. Under federal law,[1] distributions from a self-settled special needs trust must be for the benefit of such individual. In a CMS letter,[2] distributions from the trust must be “solely for the disabled individual’s benefit.” Some states interpret this slightly differently. In New Jersey, distributions must be “for the sole benefit of.”[3] In New York, distributions must be for the “primary benefit of.”[4] If [...]
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Filed under Personal Injury Consulting, Special Needs Trusts.
Tags: Personal Injury Consulting, Special Needs Planning, Special Needs Trusts
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Posted by: Thomas D. Begley, Jr.
The taxation of Confidentiality Agreements in personal injury settlements is becoming and increasing concern to plaintiffs and to personal injury lawyers. The issue arises out of a United States tax court case.[1] This case involved an incident in which Dennis Rodman, a basketball player for the Chicago Bulls, during the course of a game against the Minnesota Timberwolves landed on a group of photographers and twisted his ankle. Mr. Rodman then kicked one of the photographers, Eugene Amos. Mr. Amos was immediately taken to a local hospital and the next day sought medical treatment from the Veterans Affairs Medical Center. [...]
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Filed under Personal Injury Consulting.
Tags: Personal Injury Consulting
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Posted by: Thomas D. Begley, Jr.
An alternative to commuting a structured settlement is to sell it on the open market. There are a number of companies, including J.G. Wentworth, which will purchase structured settlement annuities. The companies do not buy the structured settlement annuity itself, but rather buy the right to the income stream. These companies pay less than the present value of the periodic payments that they acquire. The discount from present value enables the acquiring company to make a profit. These companies will buy all or a part of the income stream. These companies have a trade organization known as the National Association [...]
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Posted by: Thomas D. Begley, Jr.
Based on recent federal legislation, it appears that Medicare will soon begin to require set asides for third party liability cases. Historically, these set asides have been required only in Worker’s Comp cases, but it appears that that is all about to change. Under the Medicare Secondary Payer Act[1] and Regulations,[2] Medicare will not pay for any future medical expenses after the settlement of a claim. The Medicare Secondary Payer statute (MSP) provides that “payment may not be made…with respect to any item or service to the extent that…(2) payment has been made (emphasis added) or can reasonably be expected [...]
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Tags: Personal Injury Consulting
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