rally
In This Issue
Attend our 5/29 Special Needs Trust Workshop
Funding My Child's Special Needs Trust

In-Office Workshops:

 

SPECIAL NEEDS TRUSTS WORKSHOP FOR FAMILY MEMBERS    

Presentation  

May 29, 2013

 

 

6:00 p.m. - 8:00 pm

 

The Dale Law Firm, PC  

Conference Room

127 Aspen Dr.,  

Pacheco, CA  

 

(conveniently located at near the 4/680 Interchange between Martinez and Concord, CA) 

 

Register by contacting shelley@dalelawfirm.com  

or by calling (925) 826-5585

 

-----------

 

WebinarIntroducing 

Free and Informative  

On-line Workshops

  AA woman and computer

 

June 11:    How Does Your Special Needs Trust Affect Housing?  

 

The workshop is from 

6:30 p.m. - 7:30 p.m. PST 

 

Pre-registration is required!

 

In order to expand our outreach and support families with disabilities in our community, The Dale Law Firm, PC is introducing one hour on-line workshops.  You only need to register and then download a simple application before the workshop begins.  

 

Register by contacting

nina@dalelawfirm.com

 

For more information on these and other workshops

 


THIS MONTH'S VIDEO HIGHLIGHT

Click on title to view:


php present 2009
This 14 minute video presentation is from our "Special Needs Trusts" workshop (recorded 4/13/2011)
 
In Office
Promotional Special

    steve at stetson     

New clients will receive a discount on their special needs trust estate planning if they attend a full on-site workshop, or watch an on-line video,  

or view a free educational DVD from the Dale Law Firm, PC.   

 

For more information, go to the

 

 "Educational Workshop" 

  

section of the

 Achieving Independence 
website
(www.achieving independence.com)

There are two applicable videos to view. The first video is listed under "Special Needs Trusts" and is 1 hour, 40 minutes long. 

The Limited Conservatorship workshop is listed in 5 sections under "Limited Conservatorship".

  

The Dale Law Firm is at
127 Aspen Dr., Suite 100

Pacheco, CA  94553 


conveniently located between Martinez and Concord

Click HERE for Larger MAP   

  

Map

 

(925) 826-5585

 

AI Logo
A Newsletter for People with Disabilities and Their Families
May, 2013    
This issue's focus:

Funding a Special Needs Trusts 

 

Dear Reader:

 

This month's focus is on funding issues.  Special Needs Trusts are a unique instrument designed to protect benefits, provide for care according to your wishes and, when structured correctly, assist your loved one into the future.

 

The Feature Article, written by Steve Dale, was recently published in the April/May 2013 NAELA News (Vol. 25, Issue 2), a quarterly publication distributed nationally by the National Academy of Elder Law Attorneys.  The information contained in this article is meant to assist parents in understanding how Special Needs Trusts work and how they can be utilized to provide for their child.  

 

Additionally, on the left (under "This Month's Video Highlight") you will find a link to a workshop presentation. This 14 minute section, part of the broader subject of Special Needs Trusts for Families specifically covers the subject of Wills, Trusts and Planning for Incapacity. 

 

Do you have more questions or comments? Contact me at editor@dalelawfirm.com

 

Nina S. Jones, Editor 

The Achieving Independence Newsletter

 

SummerCampFEATURED ARTICLE

How much should I put into my child's special needs trust?

Stephen W. Dale, Esq., LL.M.

 

This is a question that is almost impossible to answer with precision, so it is important to know all of the variables. To illustrate the challenge, imagine for a moment that you have a 17 year-old daughter named Kathy who has a severe disability and will need assistance for the rest of her life.  According to current calculations, Kathy's life-span is likely to be 87 years or greater. The challenge you must address through your estate plan will be how to provide for Kathy over the next 70 years, encompassing many life events such as transitioning into adulthood and on through middle age and into old age.  We will also need to take into account the effect the eventual death of her parents will have. It is especially difficult in cases where the parents have lived with their disabled child for most of that child's life.  Their passing will often require changes in services.

 

Creating a special needs trust that focuses only on protecting Kathy's eligibility for government assistance is not going to fulfill these many challenges. It is doubtful that the benefit programs we know today such as SSI and Medi-Cal will still be in existence in 20, 30, and certainly not 70 years. It is much more likely that other programs will be in place, programs will likely operate very differently. It is absolutely essential that your plan for Kathy has the flexibility to adjust as the programs and systems that provide for Kathy evolve.

 

California currently has some of the best residential programs in the country for people with developmental disabilities. If that system is funded and administered appropriately for the remainder of her life, Kathy's other needs may be relatively small. If there are no suitable placements or benefit programs available that will assist in residential in-support services, then to privately pay for housing costs could be astronomical.

 

So, there are two figures that this family must keep in mind:  

 

1. What is the amount needed if Kathy will be able to utilize government support for quality residential programs and services; and 

 

2. What is the amount needed based on the assumption that there very well could be fewer, if any acceptable services. Of course, these figures can only be estimates at this point. 

 

As Kathy gets older the family's ability to identify actual costs will become more precise, hence the need for adaptability in the plan.

 

Attempting to achieve equality with children

An issue that families often find challenging is how to split their estate among their children when one child is disabled and other children are not. This subject alone could take an entire book. Parents often struggle with their attempts to be fair to all of their children. The fact is, children are not created equal, whether they are disabled are not.  In many cases it might be more prudent, at least initially, to dedicate more of the estate to the disabled child's special needs trust than the non-disabled child's share. The children who are not disabled presumably would have more earning capacity than their disabled sibling especially if the parents contribute to their education. In most cases the disabled child will have more needs than the non-disabled child. This is nothing new to parents of disabled children.  They deal with this juggling act their entire lifetime. In many instances it is very difficult to achieve this goal, especially when the family has limited resources.

 

Parents must look at the equities and make a pragmatic decision. Of course, this is easier said than done, but parents must try to avoid making decisions based on guilt. A common approach is to purchase life insurance to make up the difference or fill the gaps, which can be a short term or a long term solution depending on the situation, and the type of insurance purchased, whether it be "perm," or "term."

 

What if I overfund my child's Special Needs Trust?

Overfunding a special needs trust can be as problematic as underfunding the trust. There are so many variables, especially for a young child, that in many ways no matter what you do, there is an element of guess work involved. Assume that Kathy is living in a residential program that provides for virtually all of her needs. Assume further please that as long as these services continue oversight for her needs and quality of life will likely amount to several hundred thousand dollars over her 70 year lifetime. But, if these services were no longer available she will need several million dollars in her trust for her needs. You need to recognize the likelihood of losing some of these programs is fairly high in today's economy so you may decide to provide for worst case scenario by purchasing a 2 million dollar life insurance policy to fund the trust upon your death.

 

What if you pass away when Kathy is 25 and the life insurance death benefit is paid into Kathy's trust. If her services continue uninterrupted the funds will likely be invested and continue to grow they could become greater than her needs. It makes little sense then to have all of those funds tied up until she passes away, especially if the excess funds could be better used by a sibling or disability organization that you support.

 

We can draft the trust which to allow for a periodic assessment to be performed by an independent professional such as a care manager or life care planner to determine the likely needs for Kathy within a set time period.  The management team can then utilize those projections in planning for Kathy's financial needs.  Then they can distribute any excess to the nondisabled beneficiaries.  

 

It's All about Sustainable Systems

 

Today's community living system is based on the deinstitutionalization movement that was started over half a century ago that promised shutting down large state institutions in favor of well-funded community based programs. Despite incredible gains over the past 50 years current systems serving persons with disabilities and their families are poorly funded and their futures unclear and certainly likely to experience significant changes. The problem that many advocates are struggling with is the sustainability of these programs.

 

It is appropriate to think of the special needs trust as a private social service system that provides families with peace of mind that will ensure that their disabled loved ones will be able to maintain more than just existence, and instead focus on quality of life.

 

In most cases none of us will know if the right decisions were made for decades if at all because many of us may not even be alive to see what actually does transpire as a client like Kathy ages. We must consider all of these variables and do our best with what we know now.

 

(C) Stephen W. Dale, Esq.  Originally published in NAELA News, April/May 2013, Vol. 25, Issue 2, National Academy of Elder Law Attorneys, ww.NAELA.org

SNA
Proud members of
The Special Needs Alliance
learn more at:

meeting
The Dale Law Firm sponsors the achievingindependence.com website as a service to the community at large.  Our website contains the Achieving Independence for Persons with Disabilities newsletter as part of our law firm's commitment to providing vital information to persons with disabilities and their families. This website also serves as a resource for the Achieving Independence Practice System which develops Special Needs Trusts and services to support those Trusts to assist persons with disabilities to live as independently as possible, free from abuse and neglect.