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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.
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