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Q: Are BSSNP products and services tax deductible?
A: Yes, all professional fees that pertain to setting-up a Special
Needs Trust and/or preservation of assets in a Special Needs Trust are
tax deductible. This includes, but is not limited to Bart Stevens
Special Needs Planning, LLC initial consultation, private fee-based
planning and group planning workshops. (Note: "The ABC's of Special
Needs Planning Made Easy"© is also tax deductible). This deduction is made on the Form IRS 1040
Schedule A - Itemized Deductions. They are classified as miscellaneous
itemized deductions and are included with other investment expenses,
subject to 2% of your adjusted gross income. It is highly recommended
that in addition to this provided information, that you check with
your tax advisor to confirm that the expenses being itemized are
indeed tax deductible.
Q: Why is it so important for us to
plan for the future?
A: For the first time, persons with a disability are
enjoying a typical life expectancy. Therefore, many will survive their
parents and siblings. For this reason, it is important that families
prepare a plan for the care and supervision of their loved one after
they are gone, or are no longer able to care for them. Planning is not
an option, it is a necessity. How else will future care providers know
what your wishes are, and what they are expected to do?
Q: When should we begin this process?
A: Yesterday! Regardless of whether the person with special
needs is four months old or 40 years old, planning should be done
based on their needs today.
Q: What is a Special Needs Trust?
A: This document enables families and friends to leave assets to
provide for the person with a disability. When properly drafted, the
assets funding this trust are not considered to belong to the person
with special needs. The funds in the trust are intended to be used to
supplement what government benefits do not provide. The Special Needs
Trust provides protection and management of the assets and avoids
termination or reimbursement of government benefits during the
person's lifetime.
Q: Do we have to have a large estate to
create a Special Needs Trust?
A: No. Since the person with special needs cannot have more than
$2,000 of assets in their name to qualify for certain government benefits, the
Special Needs Trust is essential to hold and protect assets.
Q: Is there any risk leaving assets to
other family members designated to provide for the person with a
disability?
A: Yes, even though you trust others to use your assets to
provide for your loved one, problems can arise that they will have no
control over. If assets are left to another person, those assets
legally belong to them. The assets are exposed to loss due to
lawsuits, creditors, divorce and the death of the holder of the funds.
This individual can be named Trustee in the Special Needs Trust
avoiding any situations in their life that might jeopardize these
assets and provide protection for the person with a disability.
Q: What is the best way to leave
information for the person’s care when you are no longer able to
provide for them?
A: The most important part of any plan is the “Letter of
Intent.” It provides all the information future care providers will
need to know in order to understand the person with special needs.
Details about their abilities, diet, medication, therapy, social
activities, mannerisms, etc. are included. If the person requires
assistance with the typical activities of daily living, such as
bathing, dressing, eating, communicating, etc., it is also recommended
that a video be made showing and explaining how to assist the person.
The “Letter of Intent” is not a legal document.
Q: What are the key issues to address
in planning for the future?
A: The first, Lifestyle, addresses the day-to-day assistance,
medical, social, employment and other activity care requirements.
Next, is Legal Planning that includes Wills, Special Needs Trusts,
Guardianship, and Trustees. The third issue, Financial Needs involves
the calculating of the person’s monthly budgetary needs and how much
is required for the Trust to provide lifetime income for care.
Identifying assets to fund the trust and projecting the effects of
inflation are also a part of this planning. The final item, Government
Benefits, identifies the various Social Security and medical benefits
including: SSI, SSA, SSDI, Medicare, Medicaid, and military pensions.
Q: As a parent, do I retain the same
legal authority on behalf of my child after they reach age 18?
A: No. Every American citizen is an “emancipated adult” when
they reach age 18. Anyone, including parents, must petition the courts
to be appointed legal guardian. An alternative to legal guardianship
is a “Legal and Medical Durable Power of Attorney” in which a person
gives another the right to make medical and legal decisions on their
behalf at a time when the person is unable. The person with special
needs must be able to sign and fully understand this document.
Q: Whom can I choose to serve as a
Guardian and/or Trustee?
A: Anyone whom you feel you can trust to fulfill your wishes and
provide the best care and attention for your loved one. You can select
a relative, friend, financial institution, or charitable organization
to serve as a trustee. |
