Description

ISBN 978-0-9988142-1-6
Published 2020
Paperback
188 pages

MANAGING A SPECIAL NEEDS TRUST: A GUIDE FOR TRUSTEES

This CURRENT edition includes updates on:

• Housing: How an ABLE account can be used to pay for housing expenses without reducing SSI benefits.
• Vacations: New SSI rules allow trust payment of vacation expenses for family members who travel with the beneficiary.
•  A new financial product—the True Link card—can allow the beneficiary to have spending money without reducing SSI benefits.

As well as all the details you’ve come to expect in this comprehensive guide.

The MANAGING A SPECIAL NEEDS TRUST: A GUIDE FOR TRUSTEES 2020 edition covers many topics you need to know, including:

• What trustees need to know about public benefit programs such as SSI, SSDI, Medicare, and Medicaid;
• Taxes and special needs trusts;
• Payment of recreation, transportation, and medical costs;
• Housing subsidies; and
• Trustee duties.

The authors, who are all attorneys, bring many years experience in guiding trustees through the complicated rules of public benefits and special needs trusts. In clear, easy to understand language, the authors provide practical strategies trustees can use.

By reading MANAGING A SPECIAL NEEDS TRUST, you will learn how a trustee can use trust funds to meet the financial needs of a person with disabilities and still comply with the complex rules of government benefit programs.

THIS NEW BOOK IS RELEVANT TO ALL 50 STATES. While earlier editions were focused on Massachusetts’ laws and procedures, this book applies to all states–the book covers uniform statues that have been adopted in most states. It also provides information on the rules of most major federal benefit programs that provide cash, medical benefits and housing subsidies to people with disabilities.

MANAGING A SPECIAL NEEDS TRUST: A GUIDE FOR TRUSTEES 2020 is an invaluable resource for anyone who is managing a special needs trust for a person with a disability.

 

TABLE OF CONTENTS

About the Authors
Acknowledgments
Introduction
Resource Materials

CHAPTER 1        The Special Needs Trust
What Is a Special Needs Trust?
The Trustee’s Role: The Beneficiary Comes First
Deciding Which Bills to Pay
Paying Bills Without Reducing Public Benefits
Do You Want the Job?

CHAPTER 2        Getting Started
Read the Trust
Get Instructions from the Grantor
Meet the Beneficiary
Get Help with Public Benefits
Choose a Qualified Attorney
Find Out if the Trustee Needs an
Employer Identification Number
Review a Schedule of the Trust Assets
Transfer the Assets to the Trust
Accept the Trusteeship
Make Sure the Trust Property is Insured
Obtain Professional Help with Investments

CHAPTER 3        SSI and SSDI
The Supplemental Security Income (SSI) Program
SSI Basics
Benefit Amounts
How to Qualify for SSI
Resource Limits
Income Limits
Strategies to Avoid Reducing SSI Benefits
SSI and Work
Children’s SSI Benefits
The Social Security Disability Insurance (SSDI) Program
SSDI Basics
Who Can Receive Benefits
Benefit Amounts
Recipients of SSDI and SSI (“Dual Recipients”)
SSDI and Work
Keeping Track of Recipients’ Finances

 CHAPTER 4        Medicaid, Medicare, and Private Health Insurance Medicaid
Basic Medical Services
Qualifying for Basic Medical Services
Disability-related Services
Medicare
Medicare Part A
Medicare Part B
Medicare Part C
Medicare Part D
Getting Help with Medicare Premiums and Costs
Private Health Insurance

CHAPTER 5        Paying for Recreation, Transportation, Medical Expenses, and More
Useful Strategies for Paying Bills
Paying for Recreation Expenses
Transportation
Medical Expenses
When Not to Pay for Medical or Transportation Costs

CHAPTER 6        Housing
Housing and SSI
Housing Items the SSI Program Counts
Housing Items the SSI Program Disregards
How the Reduction in Benefits Is Calculated
Paying Housing Expenses from an ABLE Account
Assisting the Beneficiary Who Rents an Apartment
Assisting the Beneficiary Who Owns a Home
Assisting the Beneficiary Who Lives in a Home
Owned by the Trust
Co-ownership by a Family Member and the Special Needs Trust
Housing Subsidies
Find Out Whether Federal or State Rules Apply
The Importance of “Income”
Working with the Public Housing Authority
Income the Public Housing Authority Counts
Income the Public Housing Authority Does Not Count
How a Tenant’s Income Affects Rent
The Special Needs Trust and Federal Housing Subsidies
Items You Should Avoid Paying For
Items You Can Safely Pay For
The Section 8 Program
A New Trend in Housing

CHAPTER 7        The Trustee
Accepting the Trusteeship
Resigning from the Trust
Removing the Trustee
Who Should Be the Trustee?
Co-Trustees
Surety Bonds
Trustee Fees
Pay Yourself Regularly and Avoid Problems
When the Trust Ends

CHAPTER 8        Trustee Responsibilities
The Fiduciary Duty
Follow the Terms of the Trust
Do Not Have Any Personal Financial Dealings with the Trust
Keep the Beneficiary Informed About How You Are
Managing the Trust
Protect the Trust Property
Keep the Trust Property Separate from Other Property
Make the Trust Property Productive
Enforce Claims and Defend the Trust
Use Any Special Skills You Have to Benefit the Trust
Pay Income Taxes When They Are Due
Keep the Beneficiary’s Information Private
Trustee Liability
Protecting Yourself

CHAPTER 9        Everyday Management
The Budget
Opening the Initial Bank Account and Putting Money into the Trust
Signing Your Name
Record Keeping
Financial Records
Collecting Personal Information About the Beneficiaries
Where to Keep the Trust Documents
Making a Loan to the Beneficiary
Providing Financial Reports to the Beneficiaries

CHAPTER 10        Hiring Caregivers
Are You Authorized to Hire Someone? Read the Trust
Before You Hire, Explore Public Benefit Programs
That Pay Caregivers
Hiring the Beneficiary’s Parents and Other Family
Members to Act as Caregivers
The Hiring Process
Basic Requirements for Employers
Protect the Trust by Having Adequate Insurance
Protect Yourself

CHAPTER 11        Taxes
Getting an Employer Identification Number
File Form 56
Find Out if Any Taxes Are Due When You Open the Trust
Find Out if the Trust or the Beneficiary Will Pay the Tax
Strategies to Reduce Income Taxes
Income Taxes and the SSI Program: Dealing with
“Phantom” Income
Dealing with Retirement Accounts
Avoid Personal Liability for Income Taxes
Find Out if the Trust Will Owe Estate Taxes

CHAPTER 12        Investments
Making the Trust Productive
Limits on Investments You Can Make
Developing an Investment Policy
Getting Professional Help with Investments
Working with an Account Manager
Investing on Your Own
Educating Yourself
Limiting Your Liability
Investment Basics
Investing in Difficult Economic Times
Stocks
Bonds
Cash
Mutual Funds
Diversification

CHAPTER 13      Closing the Trust
The Big Picture
Reimburse the State Medicaid Agency, if Required
Find Out How Much is Owed to the State
Dealing with a Deficit
Pay the Trust’s Final Expenses
File the Final Income Tax Returns
Provide a Final Report to the Beneficiaries
Transfer the Trust Assets to the Beneficiaries
Select the Method of Transfer

CHAPTER 14        Getting Help
Attorneys
Financial Advisers
Tax Advisers
Legal Aid and Advocacy Organizations
Social Workers and Case Managers

CHAPTER 15        Glossary of Terms

CHAPTER 16         Resources
Government Websites
Publications
Organizations

APPENDIX 1        List of States That Have Adopted the Uniform Trust Code

APPENDIX 2        List of States That Have Adopted the Uniform Prudent Investor Act

APPENDIX 3        Sample Accounts and Assent Form
Example of a Trustee’s Annual Account
Example of a Final Account with a Reserve Fund
Example of a Beneficiary’s Assent to the Trustee’s Account

APPENDIX 4        Sample Trustee Forms
Example of a Trustee’s Acceptance
Example of a Trustee’s Resignation
Example of a Trustee’s Declination

Index