California Special Needs Planning

Archive for the ‘California Special Needs Planning’ Category

Orange County Special Needs Lawyer Offers Practical Tips In Setting Up a Supplemental Needs Trust

Thursday, March 14th, 2013

If you have a family member with special needs, it is important to factor him or her into your estate planning. In fact, there are “special needs trusts” or “supplemental needs trusts” that can be created specifically for this purpose. Working with a special needs lawyer in Orange County is the best way to make sure that you are setting your loved one up to be cared for when you are no longer able to do so yourself.

Special needs trusts can be set up and funded in numerous ways. A common approach is to allow other family members to contribute. In these cases, it makes the most sense to create an irrevocable trust. If you are sure that the parents will be the only contributors, then you might want to consider a revocable trust, as it can be changed throughout your lifetime to reflect the choices you want to make over the course of time.

One of the biggest considerations that needs to be made is who will be the trustee. This is the person who will administer the trust that has been created to care for your loved one. Careful thought needs to go into choosing this person, as he or she will have significant impact on the life of the person cared for by the trust. The trustee will also have access to funds and will make a lot of significant decisions.

Your special needs lawyer in Orange County can help you to define the role of this person through your legal documents, but you still want to choose someone who is trustworthy and has your loved one’s best interests at heart. He or she should also be very familiar with the specific needs of the person they will be responsible for, which could range from medical concerns to favorite foods and hobbies. Additionally, you want to choose someone who has the ability to create and execute a reasonable budget. One option is to name both a family member and a professional as co-trustees.

Of course, determining how much money needs to go into the trust is another major concern. There are so many factors to take into consideration. Remember that costs will likely continue to rise over time, so basing totals on today’s costs will likely not be adequate. This is yet another reason that it makes sense to work with a special needs lawyer in Orange County. He or she will be familiar with many of the most common costs but will also be able to personalize the special needs trust so it is a good fit for your particular situation.

You may find that there are some one-size-fits-all special needs trust planning tools online, but this is an area where that option is just not a good idea. No one has to tell the parent of a special needs child that every situation is considerably different. Instead, choose a qualified special needs lawyer in Orange County for the peace of mind knowing that your child will always be cared for and protected in your absence.

Tags: estate planning attorney in newport beach, estate planning attorney in Orange County, estate planning lawyer, newport beach trust lawyer, trust, trust attorney in newport beach
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Finding the Right Special Needs Attorney in Orange County

Monday, August 20th, 2012

There are a lot of considerations that need to be made when it comes to Orange County special needs planning, and you want to be sure you have an attorney who is well-versed in your options. All parents want to protect their children, and those with kids who have special needs sometimes find that they must take extra steps to make this happen. An Orange County special needs lawyer can help make this a reality.

There are a number of qualified special needs lawyers in Orange County, but you are likely looking for someone who seems to truly understand your specific situation. These days, a search for any sort of professional usually starts on the Internet. You can use your favorite search engine to find qualified special needs planning lawyers in the Orange County area. Another important resource is other families. It’s likely that you know of other families in similar circumstances, and their recommendations often mean more than a pretty web site or a great per-hour fee.

Once you have a list of candidates, it makes sense to do a little pre-interview. By asking each professional the same questions, you will have an apples-to-apples comparison when it comes time to make your choice.

Consider asking the following questions:

How many years’ experience do you have in Special Needs Planning?
What led you to this kind of work?
What is your overall educational and professional background?
How would you describe a Special Needs Trust and what it means for my family?
What are your typical fees? Do you bill hourly or will I have the benefit of flat fees?
Do you recommend any specific products, and if so, are you affiliated with those companies?
Can you provide references of other families similar to mine who have used your Special Needs Planning services?

You’ll likely have other questions that are important to you. For example, are there specific considerations that come into play when it comes to your child’s particular disability? Are there other family members or caregivers that need to be involved in the planning process? What government and other resources are available, and how does your special needs planning affect eligibility?

Of course, the overall goal is to find someone knowledgeable who can guide you as you put your plan together. In the end, you should feel confident that you have created a plan that will protect and care for your special child when you are no longer able to do so yourself.

If you’re ready to talk with an experienced special needs attorney who can help you create a plan that protects your child and his or her future needs, please call our Newport Beach special needs attorneys at (949) 260-1400 and ask to schedule a Family Wealth Planning Session with the mention of this article.

Tags: orange county special needs lawyer, Orange County special needs planning, orange county special needs planning attorney, special needs lawyers in Orange County
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The Letter of Intent as a Part of Your Special Needs Planning

Monday, June 11th, 2012

The documentation that you create with your special needs planning lawyer in Orange County will be quite detailed and will take an incredible amount into consideration, but it will likely not cover every possible concern or wish you may have for your child’s future care. For that purpose, many parents work with their lawyer to create a Letter of Intent.

The Letter of Intent is along the lines of a personal letter, rather than being a more formal legal document. It is used to supplement the special needs plan in order to provide additional information.

Uses for the Letter of Intent

Parents often use it to address wishes that they have which don’t really fall under the perview of legal requirements.
This document is also useful for addressing information about your child that is subject to change. While various other special needs planning documents tend to be more static, the Letter of Intent can be changed out as the information in it needs to be updated.
Finally, a Letter of Intent is used to discuss topics that are just too lengthy to include in the special needs trust.

The letter is typically addressed to the people who will be caring for your child once you are unable to fulfill that role. When the time comes, your attorney will share the Letter of Intent with the child’s caregivers, as well as with the trustee. They can use the letter to help interpret your desires and to help follow through on the wishes you have for your child.

Where to Get the Letter

Your special needs attorney in Newport Beach can help you draw up your Letter of Intent as a supplemental piece of your special needs trust. You may also wish to download a template for organizing your thoughts. A nice one is available at http://www.specialneedsanswers.com/moi_order.asp. As with any online resource, be sure to have your attorney review the document and offer advice and recommendations.

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Funding a Special Needs Trust in Orange County

Friday, March 30th, 2012

Parents and caregivers of those with special needs well understand how important it is to always think ahead in order to prepare the way for their loved one. Special needs planning is an area of estate planning that these families must consider in order to ensure that their loved one is cared for once the parent or other caregiver can no longer do so. Working with an experienced special needs lawyer in Orange County can offer great insight and creative ideas when it comes to setting up the best ongoing care.

Knowing where the funding will come from for a special needs trust can add an extra layer of concern. Medical concerns and housing options are certainly just the tip of the iceberg when it comes to planning for the rest of your child’s life! Chances are, you have been dealing with these expenses all along and are concerned that there will be nothing left to provide for your loved one.

That’s why it makes sense to consider the available options when determining how to fund a special needs trust.

How Can I Fund a Special Needs Trust?

Of course, if you have a valuable estate to leave behind, much of this can be used to fund the trust. Whether you dictate that real estate be sold upon your death to benefit your child or you have created some sort of savings program that will meet his or her needs, then you’re doing really well. Your Orange County special needs lawyer will help you direct these funds to the correct place.

For what is probably the majority of the population, however, leaving such a sizeable estate behind to care for a special needs child is just not in the cards. So, what do you do in a situation like this? One common answer is to purchase a life insurance policy that pays out directly to the special needs trust. Perhaps surprisingly, there are policies that are set up to pay off only when the second parent passes away; and these can be quite inexpensive. They may even be referred to as “second-to-die” policies.

Another option for funding the trust is to ask others to contribute. Tax incentives allow for considerable breaks on money that is given in the form of gifts annually. For those looking for such an incentive, the special needs trust can be a worthwhile recipient for an annual contribution. In these cases, it is recommended that you set up the special needs trust as an irrevocable trust.

How Much Money Should Be In the Trust?

Determining the proper amount to fund a special needs trust is something that you will likely want an experienced Orange County lawyer to help with. There are some resources available for fee, however, that can offer some guidance, including the MetDesk Special Needs Calculator at http://www.metlifeiseasier.com/metdesk/. There are a lot of considerations to keep in mind when it comes to trying to anticipate the future needs of your child. Because there is no real way to predict how costs will change, it is a good idea to re-evaluate your numbers from time to time.

A few of the categories you’ll need to consider include:

Housing
Medical care
Care assistance
Education
Employment
Replacement for assets
Special equipment
Transportation

A lawyer with experience funding special needs trusts will have a comprehensive list of considerations and will work with you to determine appropriate numbers.

If you have questions or you’re ready to get started setting up a special needs trust for your child, give our Newport Beach trusts and estates law firm a call at (949) 260-1400 and ask to schedule a free Family Wealth Planning Session with the mention of this article ($750 value).

Tags: special needs trust orange county
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Two Common Special Needs Planning Considerations For Parents In Orange County

Wednesday, March 28th, 2012

A special needs planning attorney in Orange County needs to be well-versed in a variety of topics. After all, each and every special needs situation is unique. That’s part of what makes it special! Families who are involved in special needs planning for their children or other loved ones have a variety of questions and concerns, and the attorney is a great place to move from those basic answers into more specifics that fit your circumstance.

When getting started with special needs planning, it’s a good idea to review some of the basics, however, so that you get your mind into the right gear. Having considered some of these topics before meeting with your special needs lawyer in Orange County will also save you time and money later, as you will arrive more prepared and ready to make the important decisions.

Guardians for Your Special Needs Child

One of the first things that a parent will want to consider is who will be appointed as a guardian to the child. This is the type of decision that is best made as early as possible, because in the case of your unforeseen death without a named guardian, the decision would go to the courts, who may not have the same opinions as you would.

Guardians aren’t just appointed for minor children, either. If your adult child is unable to make decisions that are in his or her own best interest, then a guardian needs to be selected to make these choices for him or her. Many people are surprised to learn that once a child reaches 18, the parent is no longer his or her legal guardian. The parent may actually need to apply for this legal standing. It is also important to remember that as you age or pass away, your child may still require a significant amount of care. This means that it is of utmost importance to select a guardian should you become incapacitated.

Setting Up a Trust For A Loved One with Special Needs

It’s quite possible that you would like to set up a trust in order to continue caring for your child or other loved one after you have passed away. In considering this, definitely work with a special needs planning attorney here in Orange County. He or she can help you determine if a trust is the right way to go, as sometimes they can interfere with other types of government support that your loved one would otherwise qualify to receive. There may be specific special needs trusts that can be created to work in conjunction with other types of support.

Have additional questions about special needs planning or how to put the right legal and financial structures around your child? Give our Newport Beach trusts and estates law firm a call at (949) 260-1400 and ask to schedule a Family Wealth Planning Session with the mention of this article (limited to first 10 callers per month).

Tags: special needs planning attorney in orange county
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3 Key Planning Steps for Autism Awareness Month | Newport Beach Special Needs Attorney

Tuesday, April 19th, 2011

As a Newport Beach special needs attorney, I wanted to highlight that April is Autism Awareness Month, which seeks to educate the public about the needs and challenges facing those with autism spectrum disorders.

It was only 50 years ago that autism was referred to as “refrigerator mother syndrome” by medical professionals who felt children displaying symptoms of autism were acting out because of “lack of maternal warmth” at home.

Fortunately our understanding of autism spectrum disorders has come a long way since then and the medical community now recognizes autism to be a complex neurobiological disorder that affects a person’s ability to properly communicate and develop social relationships.

According to AutismSpeaks.com, the disorder affects one in 110 children in the United States, with boys being four times more likely than girls to be diagnosed on the spectrum. The prevalence of autism has also increased 57 percent from 2002 to 2006, thus prompting The Centers for Disease Control and Prevention to refer to autism a “national public health crisis”.

While autism awareness is at an all time high, I’ve personally found as a Newport Beach special needs attorney that awareness from a legal perspective is sorely lacking, as many parents of special needs children are still in the dark as to the planning steps necessary to make sure their child stays protected if, and when, death or incapacity of the parent occurs.

As much as any parent of a special needs child hates to think about it, there will come a time when they are physically unable–or perhaps no longer alive–to oversee their child’s care.

That’s why it’s so critical for parents to plan ahead and make sure they have the right legal tools in place so their child remains physically and financially cared for in their absence. To achieve this goal, I typically recommend parents of special needs children to start with the following 3 steps:

1. Name Guardians- It’s important for parents to name short and long-term guardians who can oversee their child’s care if something unexpectedly happens to them. Without such designations in place, the child could end up in a lengthy custody battle–or worse–be placed in foster care if the unthinkable happens.

2. Set up a Special Needs Trust- A special needs trust is a legal tool that ensures a disabled child’s needs are taken care of and quality of life preserved if something happens to mom or dad. Without this critical tool in place, an inheritance left outright to a disabled child could interrupt their eligibility for Social Security or Medicaid in the future (which is often the only health care option available!). Instead, a trust helps to ensure that the child receives such financial benefits without actually having assets in their name–thus leaving all government benefits intact.

3. Build a Team of Support- It’s never too early to start building a team of trusted caregivers and advisors who can immediately step in and help the child if a crisis occurs. Such team members may include the child’s legal guardians, a trusted doctor, financial advisor, estate planning attorney and dedicated family or friends. Building a team now also helps to ensure you have the right people in place, as opposed to someone who will prey upon your child’s weakness in an emergency.

The most important thing a parent of a special needs child can do is to plan ahead as though their child will require a lifetime of care. Fortunately, with early detection and new aggressive therapies this may not be the case, but at least parents will have the peace of mind knowing that their child will be physically and financially cared for if something happens to them.

Tags: autism awareness month, newport beach special needs attorney
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When It Comes To A Supplemental Needs Trust, Out of Sight Should Never Be Out of Mind

Thursday, March 10th, 2011

You’ve been a responsible planner for your family’s future, especially your child with special needs.

You’ve met with an Orange County Special Needs attorney, set up a Supplemental or Special Needs Trust and you can breathe a sigh of relief. Your work is done, right?

Wrong.

Funding and forgetting about a Trust can be as detrimental as not forming one at all. And having one that isn’t properly written can render it completely useless.

Supplemental Needs Trusts (sometimes called Special Needs Trusts) allow people with mental or physical disabilities, or even people with chronic or acquired illnesses, to have unlimited assets held in Trust for their benefit. If you have a child, grandchild, or even a spouse with a disability, a Supplemental Needs Trust can ensure that they have the funds they need to maintain their lifestyle after you’re gone.

And if your Supplemental Needs Trust is drafted properly those assets don’t count as financial resources in determining your loved one’s eligibility for government benefits. The Trust provides for supplemental care over and above what government programs provide.

Even if your family has significant resources to care for a disabled family member, you should ensure that your Supplemental Needs Trust is written to specifically address the needs of that family member and their future lifestyle. Monies can be placed in the Trust and used for their benefit without being counted as a source of income. This allows allow the family member to qualify for benefits and programs they might not otherwise qualify for. Why sacrifice services (and the funds needed to pay for those services) if you don’t have to?

If you have a family member with a disability that could require significant care as they age, a Supplemental Needs Trust can give you peace of mind in knowing that they will have the resources they need when you are no longer there to provide them. But a word of caution – these are complex documents and require very specific language in order to be effective. Your Trust must address the following:

The Specific Intent of the Trust- You cannot assume that because a document is called a Supplemental Needs Trust that it addresses what you intended to address. The Trust must specifically state that it is intended to provide “supplemental and extra” care over and above what government programs provide. It must state that it is NOT intended to be a basic support Trust and the funds cannot be used for basic support
Repayment Obligations- If the Trust is funded by parents, other third party sources or a personal injury Settlement, it will not be required to pay back Medicaid for expenses covered by the program. But if the Trust is funded by assets belonging to the disabled individual (such as earnings from a job, savings, certain Social Security back payments, personal injury recoveries not ordered into the Trust by the Court), the Trust may have to repay Medicaid for expenditures. A properly drafted Trust must address paybacks to Medicaid or other governmental sources (both state and federal). Federal law requires that repayment language be included even if repayment is not required. Make sure you discuss repayment obligations and proper funding with your attorney.
Changes to the Early Termination Provision Payback Requirement- Some Supplemental Needs Trusts contain language that allows termination of the Trust prior to the death of the beneficiary if, for example, there are no longer enough funds in the Trust to justify its continued administration or the beneficiary is no longer disabled. Effective October 1, 2010, there are significant changes in the Social Security Operations Manual System that will affect Trusts established on or after January 1, 2000. These changes could seriously impact the repayment provisions in your Supplemental Needs Trust if it contains early termination provisions.

Do you know how your Supplemental Needs Trust treats these issues? If improperly written or not modified to address changes in the Social Security Operations Manual or changes to other requirements in benefit programs, a Supplemental Needs Trust can very easily be raided by governmental benefit sources. It could even be declared invalid if not properly written. Not ensuring that your Trust documents properly address any applicable changes can lead to a loss of benefits, loss of savings or other legal and financial hardships that can easily be avoided.

If you have a family member that you wish to benefit with a Supplemental Needs Trust or you would like an expert opinion on the proper language in your Trust documents, call us to schedule your Family Wealth Planning Session today. We can identify what needs to be done to ensure that you have the appropriate language in your Trust documents and you are in compliance with the proper regulations to protect your loved one. Our Family Wealth Planning Session is normally $750, but this month I’ve made space for the next two people who mention this article to have a complete planning session with me at no charge. Call today and mention this article.

Tags: special needs trusts, supplemental needs trust
Posted in California Special Needs Planning, Orange County Wills and Trusts | No Comments »

Special Needs Lawyer in Orange County Discusses The Importance of Special Needs Planning

Monday, March 7th, 2011

As an Orange County estate planning attorney, and mother myself, I can honestly say that that estate planning is critical for all parents of minor children.

It provides the opportunity to determine who will raise your kids if you can’t, what money will be set aside or used for their upbringing, and even what money will be used to support them as adults.

Yet each of these choices can become even more difficult when the child has disabilities, especially if he or she is receiving some type of government assistance. This is where working with an Orange County special needs planning attorney comes into play.

A special needs planning attorney is familiar with the most common choices faced by parents of children with disabilities and can offer advice and suggestions as to the best plan for your child’s care.

A special needs attorney also understands the ramifications of receiving an inheritance when it comes to eligibility for government assistance.

It’s important for parents to keep in mind that just leaving their child money outright if something happens to them can jeopardize the child’s chance of receiving Social Security or Medicaid benefits in the future.

That’s why we recommend using a “special needs” or supplemental needs trust which will be set up in such a way to meet government standards and allow for the continuation of other benefits.

However, special needs planning also covers more than just maintaining eligibility for government support. It also protects the disabled individual from lawsuits and other debts, as the trust cannot be seized in order to pay these.

This protects the trust and the individual who relies upon it for his or her upkeep.

And of course special needs planning also helps to ensure that your disabled child will be raised by the people you want, in a way you want, if something happens to you.

So if you are ready to get started in creating a plan that makes sure your disabled child stays physically and financially protected if the unthinkable happens, I invite you to give our office a call at (949) 260-1400 to schedule a Family Wealth Planning Session.

These sessions are normally $750, but we’ve made space for the next 10 area families to come in this month absolutely free of charge. Simply call (949) 260-1400 to reserve your free planning session today.

Tags: special needs attorney
Posted in California Special Needs Planning, Orange County Estate Planning | No Comments »

Orange County Special Needs Lawyer Reveals 3 Costly Mistakes Made By Most Families with Special Needs Children

Friday, October 22nd, 2010

By Darlynn Morgan- Orange County Special Needs Lawyer

As an Orange County special needs lawyer, I know families with special needs children have unique planning requirements. Unfortunately there are many misconceptions when it comes to securing the financial future your child deserves. Even well-meaning caregivers and service organizations don’t understand issues and give bad advice. It is really critical for these families to fully understand their options because these misconceptions can result in costly mistakes. Below are just a few.

COSTLY MISTAKE #1: Disinheriting your child to preserve government benefits.
Many children and adults with special needs rely on government benefits such as SSI and Medicaid for their basic needs (including health insurance). There are some who would suggest that you disinherit your child to protect his or her benefits. But government benefits provide only enough to secure food and shelter. So what happens after you become incapacitated or pass away? Will your child be able to maintain the life that you have so carefully crafted for them? Probably not.

If your child is likely to require government assistance to meet his or her basic needs, you should consider establishing a Special Needs Trust. If done properly, a Special Needs Trust can protect your child’s public benefits and help them maintain their lifestyle even after you are no longer there to support them.

COSTLY MISTAKE #2: Procrastination.

As an Orange County special needs lawyer, I can say it is critical that all parents with minor children do estate planning. You just never know when you might become incapacitated or die. But, it is even more critical that parents of special needs kids plan early. That is because a child without special needs will be able to work and provide for their own financial well-being when they become adults. However your special needs child may never be able to do that. Plan early because your failure to properly plan for them can never be undone.

COSTLY MISTAKE #3: Creating a “DIY” or generic special needs trust.
A Special Needs Trust must be created by a Orange County special needs lawyer who has expertise in this area of the law. It is possible to create a DIY or generic trust that can protect your child’s government benefits, but most likely they are not designed to meet your child’s particular needs. It is critical to design a trust that will ensure that your child’s specific requirements are considered. For example, your child may require, or greatly benefit from, special group programs, individualized physical therapy, or other things that a generic trust simply doesn’t address.
A properly drafted and funded Special Needs Trust can ensure that your child has sufficient assets to care for them in the way you plan throughout their lifetime. But be sure to see an experienced Orange County special needs lawyer and don’t rely on what others may be telling you.

Tags: orange county special needs lawyer, special needs trust
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Enhance Your Child’s Long-Term Quality of Life with the Help of an Orange County Special Needs Planning Attorney

Friday, May 21st, 2010

As an Orange County special needs planning attorney, I’ve been privy to the fears and concerns of special needs parents through the years including, “What will happen to my child when I am gone,” and “How will he/she be provided for financially in my absence?”

As a mother myself, I understand these are legitimate concerns and I can’t stress enough how much parents of special needs children must be proactive with their dependent child’s care to ensure their they are protected physically, financially and emotionally should tragedy strike.

Fortunately, working with an Orange County special needs planning attorney makes this process very easy, as together we help families discover:

How to make an effective plan for your special needs child so you can rest easy knowing your child will be cared for physically and financially when you’re gone.
What are special needs trusts and how to use them.
How to ensure you’re working with the right legal and financial advisors for your child….and how to avoid being taken advantage of in the process.
Critical steps in protecting a special needs child should the parent ever become incapacitated or unable to care for them on a short-term OR long-term basis.
How to set up a long-term support system for an individual with life-long disabilities…which is critical to the quality of their overall care.

Protecting your special needs child starts by getting educated and empowering yourself with the information you need to ensure your child is protected—no matter what!

Fortunately, we’ve made the education process easier than ever for parents in the O.C. by offering our comprehensive Special Needs Planning Sessions FREE to 10 families each month ($750 value).

In this session, an Orange County special needs planning attorney will help your family discover the benefits and options available to your child in plain English so you aren’t stuck navigating the complicated world of special needs planning alone (again, we know you have enough on your plate!).

But these spots go fast each month, so call (949) 260-1400 to reserve your appointment with an Orange County special needs planning attorney today. You will gain great peace of mind by taking the time to plan for your disabled child’s future while you still have the health, time and energy to do so.

Tags: orange county special needs planning attorney, special needs trusts
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