Tag Archives: financial planning

13 Ways a Special Needs Pooled Trust Can Help You In 2013

Posted on by
Reply
2013 The Year of the Snake

2013 The Year of the Snake

Welcome to the New Year! A time when we consider resolutions, plans, hopes and moving forward into future with a fresh start. And welcome to 2013 The Year of the Snake in Chinese Astrology! While researching The Year of the Snake I found there are some interesting traits between Snakes and those of us working within Special Needs Pooled Trusts.  So let’s take a look.

Technically The Year of the Snake begins on February 10, 2013 and ends on January 30, 2014. The Snake is the 6th sign is the Chinese Zodiac and is also called the Junior Dragon. People born in the Year of the Snake are keen, cunning, quite intelligent, wise, graceful, and exhibit materialism.  When making decisions, Snakes are extremely analytical and as a result they don’t jump into situations. They are great mediators and good at doing business. These are all fabulous traits; we should be intelligent, do our research, take time, and be wise in our decision-making. So let’s all be more “snake-like” in 2013!

Additionally this is a year of the water Snake, meaning all things will be possible.  Top priorities are saving money and being thrifty which are good priorities in any year.  Delusion and deception are common in the year of water Snake, so stay alert!  To gain the greatest benefits from this year, you must control spending and use your talents wisely.

Again, many of the qualities listed for those born in the Year of the Snake are ones we all can aspire to when organizing our lives and finances to insure that 2013 and beyond are healthy, financially sound, and prosperous years.

So in the name of fresh starts, planning, The Year of the Snake, and Special Needs Trusts let’s have some fun with this and look at 13 Ways a Special Needs Pooled Trust Can Help you in 2013.

  1. Save and invest money while qualifying for or retaining your benefits.
  2. Plan for a child to live the same lifestyle they do now with you.  An Easter Seals Living with Disabilities shows there are 7 in 10  adult children with disabilities living with a parent or guardian and 52% of parents of a child with a disability are concerned about their child’s financial well being. Yet while parents concerns are high nearly one-third have done little or nothing to prepare. What happens when you are no longer here?
  3. Ability to receive back payment, settlement, or windfall and maintain benefits.
  4. Have an individualized assessment and plan done with a qualified care manager.
  5. Receive the proper care management when needed.
  6. Help the beneficiary access funds in ways permitted by state and federal legislation.
  7. Be an advocate for the person with disabilities. Unfortunately getting dropped from SSDI or SSI does happen, along with other possible issues. But as our client we will advocate on your behalf. We are here for you!
  8. Protection from financial exploitation.
  9. Minimal investment amount, but the same investment advice and experience that million dollar trusts receive through our private wealth management partner.
  10.  Very low set up fees compared to private trusts as we hold master trust documents for both first and third party trusts.
  11.  Help maintain compliance and reporting to state and federal agencies.
  12.  Knowledge that an experienced non-profit volunteer board has your needs in mind. We are not in this for the money but the belief in a better life for our clients.
  13. Peace of mind.

Ancient Chinese wisdom says a Snake in the house is a good omen because it means that your family will not starve.  Modern day Special Needs Pooled Trusts like The Special Needs Trust Network (SNTN) know that planning for the future today can protect you by maintaining your benefits, protecting assets, and creating a sense of financial well-being therefore limiting the possibility of “starving.” While we can’t protect you against every threat and not all investments earn positive returns on a regular basis we’re just asking you  to consider at least the first step;  think about protecting what you have now for the future.

At the Special Needs Trust Network we’re always just a click, call, or visit away. If you have questions or comments please reach out to us, there is no charge for this conversation and if you are outside of the state of Colorado we will happily refer you to other qualified and experienced non-profit pooled trusts.  Feel free to reach us at 303.331.4420, Info@SNTNetwork.org. and make sure that in the Year of the Snake you save money, gain the benefits you deserve and the peace of mind that comes with this.

 

Health Care Ruling A Win for Those with Disabilities

Posted on by
3

The recent ruling by the Supreme Court to uphold the Affordable Health Care Act (AHCA) was a win for people living with disabilities.

The signing of the Act by President Obama as his landmark legislation includes a number of provisions that go a long way in alleviating issues and stress for people with disabilities. Many of the provisions have yet to be fully implemented but the significant ones for those living with disabilities are:

  • No more lifetime coverage limits on health insurance plans.
  • Insurers will not be allowed to charge higher rates or deny coverage to those with pre-existing conditions, including disabilities or charge women more than men.
  •  Establishes the Community First Choice Option offering states the opportunity to receive increased federal matching funds to support community living.
  • Requires health insurance plans to cover a menu of “essential benefits” including mental health services, habilitation and rehabilitation services as well as behavioral health treatment.
  • 5.3 million seniors will continue to save $600 a year on their prescription drugs
  • Preventative care will still be covered free of charge by insurance companies including mammograms for women and wellness visits for seniors.
  • Efforts to strengthen and protect Medicare by cracking down on waste, fraud, and abuse will remain in place.

On the day the Supreme Court ruled in favor of the AHCA, Jonathan Young Chair of the National Council on Disability said, ““For millions of Americans with disabilities who rely on home and community based services to live, learn and earn in America, the ruling today by the Supreme Court on the Affordable Care Act is arguably the most significant decision since passage of the Americans with Disabilities Act 22 years ago,”

The one possible negative impact for people with disabilities is that the justices did rule against the provision in the ACHA that called for states to expand Medicaid to include those earning up to 133% of the federal poverty level or lose out on federal funds. For a single person this currently amounts to about $14,856 in earnings. The court ruled that this mandate could not be imposed.

If states decide not to expand Medicaid to the above limits, and forgo the significant federal funding to do so,  there are many people with disabilities that could lose out on Medicaid coverage as they earn too much.  The decision on this one provision shows why appropriate financial planning for people with a disability is imperative. The use of a special needs trust can help in such situations as having too high earnings, or too many assets to qualify for Medicaid. As always we advise you to seek certified professional help not only from a special needs trust like The Special Needs Trust Network, but also with a certified elder care attorney when deciding on your financial planning needs.

 

Affordable Care Act helps people with disabilities

Briefly, What is a Special Needs Trust?

Posted on by
Reply

Many times we’re asked at The Special Needs Network, “Just what is a Special Needs Trust?” The “elevator speech” answer is:

A Special Needs Trust (SNT) contains the assets of an individual who is disabled, and protects those assets from being counted as a resource for means-tested public benefits such as Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI), Medicaid and Medicare. In the United States SNT’s are also known as Supplemental Needs Trusts and can have unique advantages in relation to the provision of health care, long-term care, and nursing home care benefits especially when using Medicaid.

Because The Special Needs Trust Network is a “Pooled Special Needs Trust” we also get asked what that is..Simply put a “pooled” Special Needs Trust (SNT) is a trust that “pools” all beneficiary funds together for investment and administrative purposes while maintaining an individual sub-account for each beneficiary. A self-settled pooled SNT like the one run by The Special Needs Trust Network is authorized by a specific Federal stature: 42 United States Code, Section 1396p (d) (4) (c) and therefore is often referred to as a d4c trust. This same statue says that pooled trusts could be administered by non-profits and there are now non-profit pooled trusts operating in all fifty states.

The beauty of the pooled trusts is that we don’t have to accept only large amounts of money because we pool all of the money into one master trust. Beneficiaries receive interest and capital gains earnings on their investment principal in direct proportion to the percentage of the pool the money in their sub-account represents. Many banks and investment companies won’t create trusts for anything under $1 million dollars, and even with $250,000 many times beneficiaries have a hard time finding an investment partner to create an SNT. A non-profit pooled trust like The Special Needs Trust Network will help clients of all financial ranges from five-figures on up to beyond $1 million.

Special Needs Trusts are used frequently to:

  • Receive an inheritance
  • Accept a personal injury settlement
  • Collect Insurance settlements
  • Receive Windfalls
  • Collect back payments

Receiving money in any of these ways without having a proper SNT set up can cause a disabled person to lose some or all of their needed benefits. Contrary to many sensational news stories regarding large settlements we see individuals who many times receive far less than $100,000. Asset guidelines for an individual applying to qualify for Medicaid or who are on Medicaid have to meet SSI guidelines which are:

  •  Single applicant no more than $2,000 in countable assets
  • Married applicant no more than $3,000 in countable assets

As you can see just accepting the normal back payment from SSDI, which is usually around $10,000, after waiting to qualify can cause someone to potentially lose benefits. You can see why a properly set up and administered pooled SNT can help those people who need it the most. In future blogs we’ll discuss the two types of SNT’s; first party and third party, as well as expand upon the benefits of these trusts.

If considering an SNT please talk to a qualified and certified elder care or trust attorney easily found at both The National Elder Law Foundation (NELF), and The National Academy of Elder Law Attorneys (NAELA).  Please check back for further information regarding SNT’s their variations, uses, and benefits, and as always we look forward to your questions and comments.