Bank Accounts The Federal Deposit Credit Union (FDIC) and the National Credit Union Share Insurance Fund (NCUSIF) insure banks and federally-insured credit unions, respectively.  The FDIC, established in 1933 as an independent agency, insures all deposit accounts, including checking and savings accounts, money market deposit accounts, and certificates of deposit, placed in banks and savings associations, but it does not cover stocks, bonds, mutual fund shares, life insurance policies, annuities, or securities. If a member bank fails, the FDIC insures all depositors at that institution against loss up to a certain dollar limit.  The current standard FDIC insurance amount is [...]

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Filed under Estate and Trust Administration, Estate Planning, Estate Planning, Guardianship, Medicaid Planning, Medicaid Planning, Special Needs Trusts, Special Needs Trusts.

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If a personal injury lawyer has a client who needs a Special Needs Trust and the lawyer fails to advise the client appropriately and take steps to see that such a trust is established, the personal injury lawyer may have liability to the client under a malpractice claim. Self-Settled Special Needs Trusts were authorized by Congress in 1993. If the trust is properly established and administered, the injured plaintiff can continue to remain eligible for public benefits, such as SSI and Medicaid, and benefit from the use of the personal injury settlement. If the trust is not established, then the [...]

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Filed under Personal Injury Consulting, Special Needs Trusts.
Tags: elder law new jersey, new jersey elder law, new jersey elder law attorney, new jersey estate planning, new jersey estate planning attorney, new jersey estate planning lawyer, nj elder, nj estate planning, nj estate planning attorney
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A Self-Settled Special Needs Trust is a vehicle authorized by Congress under OBRA ’93. By utilizing this type of trust, a beneficiary can maintain eligibility for important public benefits, such as SSI and Medicaid, and enjoy the benefit of the personal injury settlement. In authorizing Self-Settled Special Needs Trusts, Congress imposed six conditions: • Assets of Individual. The trust must be funded with assets of the individual. The individual is the beneficiary of the trust. The personal injury settlement belongs to the individual and satisfies this requirement. • Under 65 Years of Age. The beneficiary must be under age 65. [...]

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Filed under Special Needs Trusts, Special Needs Trusts.

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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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Where there is a professional trustee rather than a family trustee, there may be a trust advisor, trust advisory committee or a trust protector. Trustee Advisor. A commonly used technique is to name a trustee advisor. A trustee advisor can advise the trustee without actually making decisions. In most cases, the independent trustee will rely on the trust advisor for advice concerning distributions, to ensure that proposed distributions are not improper. The trustee advisor’s role is to review the financial records of the trust and to meet with the trustee and the family to ensure that the trust is being [...]

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Filed under News, Special Needs Trusts.
Tags: Special Needs Planning, Special Needs Trust, Trust Protector, Trustee Advisor
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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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The current federal Medicaid statute has been in effect since 1989.[1] Generally, the statute provides that if an individual makes an uncompensated transfer of resources, the value of those resources are divided by the average monthly cost of a nursing home and the resulting quotient is the number of months during which the applicant will be ineligible for Medicaid benefits.[2] The statute further provides that “an individual shall not be ineligible for medical assistance by reason of [the transfer penalty rules] to the extent that…the assets were transferred to, or to a trust…established solely for the benefit of the individual’s [...]

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Filed under Estate Planning, Special Needs Trusts.
Tags: Special Needs Planning, Special Needs Trusts
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Section 8 of the Housing Act of 1937 provides a rental assistance program for low-income families and individuals.  Persons with disabilities often qualify.  In fact, people receiving SSI receive only the federal benefit rate of $637 and, in some states, a small supplement, typically $25 – $50.  Section 8 Housing is the only housing they can obtain, unless they are families or a trust provides the housing for them. Generally, the applicant must be a “family,” must be income-eligible, and must be a citizen or non-citizen who has eligible immigration status.[1] Income Eligibility As a general rule the income of [...]

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Filed under Special Needs Trusts, Special Needs Trusts.
Tags: Special Needs Trusts
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A. INTRODUCTION In the course of protecting our client’s eligibility for important public benefits, which often make a huge difference in their quality of life, attorneys are called upon to draft and assist in administering various types of trusts.  We are also expected to counsel our clients as to whether a particular trust is appropriate.  Some of these trusts include the following: Third Party Special Needs Trust Self-Settled Special Needs Trust Pooled Trust Income Only Trust Children’s Trust Donee Trust Disability Annuity Trust Disability Annuity Special Needs Trust Third Party Special Needs Trusts, Self-Settled Special Needs Trusts and Pooled Trusts [...]

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Filed under Library, Special Needs Trusts, Special Needs Trusts.
Tags: Special Needs Planning, Special Needs Trusts
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A self-settled pooled trust is defined as a trust containing the assets of an individual who is disabled that meets the six conditions discussed in the following sections. Disabled The trust must be for the benefit of a person with disabilities. Disability is defined by the Social Security Act § 1382c(a)(3). A person receiving SSI or SSD has already been determined to be disabled by the Social Security Administration and no further determination is necessary. If the individual is not receiving SSI or SSD, the State Medicaid Agency has to make a determination. The criteria of the SSI program must [...]

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Filed under Personal Injury Consulting, Special Needs Trusts.
Tags: Personal Injury Consulting, Special Needs Trusts
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