Estate Planning Bits

Your health care agent - having that tough conversation

The health care agent you designate in your health care proxy may have to make some tough decisions regarding your care. It is important to select someone who is willing to carry out your wishes. This video will help you understand what information you need to share with that person. [email protected]

This video has been prepared by Bacon Wilson, P.C. for informational purposes only and is not intended and should not be construed as legal advice. This information is not intended to create, and receipt of it does not constitute, a lawyer-client relationship. Viewers should not act upon this information without seeking professional counsel. Do not send us information until you speak with one of our lawyers and get authorization to send that information to us.

Special needs trusts – what are they and how are they used?

Providing support for people with disabilities requires special estate planning. If you have a disabled child, relative or friend, there is some essential information you should have regarding special or supplemental needs trusts. A special needs trust is a legal document that is created for a person who, because of physical or mental disability, or chronic or acquired illness, at under age 65, is receiving federal and state government benefits for medical care and daily living needs, such as Supplemental Security Income (SSI.) 

An individual who qualifies for SSI is limited to countable resources in the amount of $2,000. In the event that a recipient of SSI receives an inheritance directly from a parent or another, which bumps up their assets over $2,000, they will be disqualified from receiving SSI benefits. As such, special or supplemental needs trusts have become the preferred method to provide a source of funds, such as those that are inherited or received from litigation recovery, without disqualifying the beneficiary from receiving these government benefits. The trust funds are used for supplemental care, over and above what the government benefits provide. 

There are three main types of special needs trusts: the first-party trust, the third-party trust, and the pooled trust. All three name the person with special needs as the beneficiary. A “first-party” special needs trust holds assets that belong to the person with special needs, such as an accident settlement. A “third-party” special needs trust holds funds belonging to other people, such as a parent or grandparent, who want to help the person with special needs. A pooled trust holds funds from many different beneficiaries with special needs.

Special or supplemental needs trusts are designed to provide for comforts and luxuries that could not be paid for by public assistance funds. Appropriate legal and financial planning can ensure that your loved one with special needs will have an opportunity to enjoy a better life than that provided solely by government assistance. The drafting of special or supplemental needs trusts is a specialty, and only attorneys who have significant experience in these types of trusts should be engaged. 

Todd C. Ratner, Esq.

Guardianship of Minor Children: Your Very Important Decision

You are most qualified to decide who should take care of your minor children if something happens to you, so it's wise to take steps now. Todd C. Ratner, Esq. [email protected], 413.781.0560

This video has been prepared by Bacon Wilson, P.C. for informational purposes only and is not intended and should not be construed as legal advice. This information is not intended to create, and receipt of it does not constitute, a lawyer-client relationship. Viewers should not act upon this information without seeking professional counsel. Do not send us information until you speak with one of our lawyers and get authorization to send that information to us.