By Marion M. Walsh, Esq., Littman Krooks LLP

We at Littman Krooks know how challenging this time is for families. New York, along with Washington State, leads the U.S. in cases of Coronavirus (COVID-19). The pandemic will strain public resources and services for all. We do not have all the answers, as current events are unfolding, but provide information and assurance for families.

We know that school closures are occurring everywhere, due to public health concerns. The New York State Department of Education (NYSED), together with the New York State Department of Health (NYSDOH) on March 9, 2020, issued School Guidance to public school districts for planning. In addition, the CDC, on March 12 2020, issued interim CDC School Guidance to  school districts on closures. Some private schools or school districts will have to close for a certain period and many will consider providing distance learning.

Impact on Students with Disabilities

COVID-19 and the disruptions and school closure  will affect all families and cause stress and interruptions. Yet the pandemic and closures will inevitably have a disproportionate impact on students with fragile health conditions and students with disabilities. The US Department of Education has issued USDOE Guidance for help with IEP services.  Federal and state law  do require that students with disabilities continue to receive a free appropriate public education. You will need to work with your child’s providers and with your school district to ensure your child receives appropriate services and support. However, keep in mind that the USDOE Guidance states that if a school district  closes its schools to slow or stop the spread of COVID-19, and does not provide any educational services to the general student population, then the district would not be required to provide services to students with disabilities during that same period of time, although in some circumstances, compensatory services may be needed.  As most New York School Districts will endeavor to provide some kind of student distance learning however, the school districts that do this must ensure appropriate and accessible services for students with disabilities.

We have compiled an action/information plan for all families with  special attention to families of children or teens with disabilities or students with fragile physical or mental health conditions:

Basic Tips

• Ensure that you keep your child calm and reassured. You can review basic Health-Crisis Guidance  from the National Association of School Psychologists for how to speak to children and reassure them. Remember that your children will react to and follow both your verbal and nonverbal reactions.  Your statements about  COVID-19, current prevention efforts, and related events can either increase or decrease your children’s anxiety.  Remind your children that you and the adults at their school are there to keep them safe and healthy. This NPR comic video  may be helpful to explain the virus to students.
• Review and Follow Basic Hygiene. Review and re-enforce the importance of hand washing and important hygiene protocol with your child.  Students with intellectual disabilities may need help and reinforcement. The CDC has provided information on how hand washing can be a family activity.

• Keep as much structure at home if possible.  To the extent possible, maintain a sense of normalcy in your home while keeping expectations reasonable. Parents can ask teachers for additional homework that parents can use to ensure that the student is being academically challenged or receiving consistent academic material.  However, do not push children or teens if they seem overwhelmed.  While stressful and difficult, this can be a chance for family time and togetherness.   The closings and limited activities disrupt our routine but may give us a chance to enjoy some of the basics at home such as family game nights, conversation, good books.  Each family has its unique structure and idiosyncrasies and to the extent you can, try to figure out for your family a path to come out of this stronger and more united.

Parent Support

• Seek Flexibility with Employer if Needed.  If you work outside the home and are the primary caregiver for your child, you should seek flexibility with your employer and ask about the ability to work remotely or to take a leave of absence.  The Family Medical Leave Act, in general, protects employees in workplaces with 50 employees or more and allows unpaid leave of absence to care for family members, for up to 12 weeks, without penalty.
• Rely on Virtual Support Groups.  Parents can derive help and support from other parents in similar situations.  Reach out via social media to find support groups with similar issues to ones you are facing.  A virtual community of other parents, while not a substitute for person-to-person interaction, can help you locate resources and share experience on certain issues.

Student Services Options

• Obtain Medical Documentation for Student’s Unique Needs. If schools remain open, do not assume that your school district will automatically grant requests home bound instruction or other services as you may  need current documentation.  If your child is medically fragile or immuno-suppressed, obtain a letter from your child’s doctor and submit it to your school district to ask that home instruction, provided by the school district, begin as soon as possible. For students who cannot attend school and have medical documentation, New York Education Law  requires that home bound instruction must be available for students who reside in the district if they require it. For children with disabilities who are absent for an extended period of time because of a COVID-19 infection when the school remains open, according to USDOE Guidance, then for each child, the IEP Team must determine whether the child is available for instruction and could benefit from home bound services such as online or virtual instruction, instructional telephone calls, and other curriculum-based instructional activities, to the extent available.
• Review Options for Online or Virtual Services for Your Child. Public safety protocols may limit the ability of providers or health care workers to work directly with students. For services, such as physical therapy or occupational therapy, it is not possible to obtain these services virtually. However, other services, such as home instruction or, in some circumstances, counseling, may be appropriate remotely or virtually.
• Document Missed Services. If needed and possible, you should see if providers will come to your home to provide services. If a child does not receive services during a closure, a child’s IEP team (or appropriate personnel under Section 504) must make an individualized determination whether and to what extent compensatory services may be needed, consistent with applicable requirements, including to make up for any skills that may have been lost. For any school closures or interruptions in services, document any  services your child has missed and keep records and documentation of any regression. Ask the school district to provide related make up services.
• Understand Option of Home Schooling. Home schooling is different than home bound instruction and if you are worried about your child’s health, you may consider home-schooling. New York State Home Schooling Guidance  explains that parents must file for an Individualized Home Instruction Plan New York. Home-schooled students, like students parentally placed in private school, are eligible for certain District of Location services, including related services, through an IESP. Here are other resources: Families Unschooling In New York; New York Home Educators’ Network

If Quarantined.

• Review Guidance if under Voluntary or Mandated Quarantine or Containment. Families must review Containment Guidance. Keep in mind that persons under mandatory isolation or mandatory quarantine can walk outside their house on their own property, but they must not come within six feet of neighbors or other members of the public. The Containment Guidance notes that families may need assistance with many basic necessities as well as mental health or social needs and supplies, but does not give tips on how to get this assistance.

The COVID-19 situation is evolving and new protocol may be available and required. The above tips do not constitute legal advice or any type of medical advice. Consult with your child’s doctors or providers for information on health protections for your child. If you believe that your school district is not appropriately serving your child, it is wise to consult with an attorney who specializes in education law. We at Littman Krooks are here to answer any questions, as well. Our office will be functioning through the outbreak—whether virtually or in-person– and please reach out to any of us.

Please remember that, In the past two decades, we have gone through 9/11, the tragedies and echoing repercussions of Sandy Hook and Parkland, hurricanes and other disasters as well as other defining moments. We will  persevere through this as well. We have learned that a positive, calm, rational and proactive  response to disasters and fears  can create resilience for all of us, including our children and help build a stronger society. For your children, try not to  succumb to  fear, anger, and confusion, but work to be a light to others to lead them through.

Learn more about elder law,  estate planning and special needs planning at http://www.elderlawnewyork.com  & www.littmankrooks.com. Have questions about this article? Contact us.

Was this article of interest to you? If so, please LIKE our Facebook Page by clicking here.

Posted in Autism, Events, IEP, medicaid, New York Special Needs, Special Education Advocacy, Special Needs Trusts | Comments Off on Ten Tips for New York Families in the Wake of the Coronavirus

NAELA has designated October as “National Special Needs Law Month.” Special needs planning attorneys throughout the country contribute a great deal to their communities by educating those with special needs, their families, and caregivers about their legal needs.

Special needs planning attorneys assist families in financing long-term care, and provide them with the legal tools for financial management, such as powers of attorneys and trusts, as well as understanding Medicare and Medicaid, special needs trusts, and a student’s right to an independent educational plan, housing options, and other issues.

Special needs planning attorneys throughout the country are observing National Special Needs Law Month this October by providing public seminars, law clinics, and other activities that will educate the public.

Click here to learn about our events this fall. Click here to learn more about special needs planning.

Learn more about our special needs planning and special education advocacy services at www.littmankrooks.com or www.specialneedsnewyork.com.

Was this article of interest to you? If so, please LIKE our Facebook Page by clicking here or sign up for our monthly newsletter.

Posted in New York Special Needs, Special Needs Trusts | Comments Off on October Is National Special Needs Law Month
Tags: national special needs law month, special needs planning

By Amy C. O’Hara, CELA, Partner

No one else knows your child as well as you do, and no one ever could. You are a walking encyclopedia of your child’s history, experiences, habits, and wishes. If your child has special needs, the family’s history adds a helpful chapter to your child’s book, one detailing his unique medical, behavioral and educational requirements.

What would happen if you suddenly became unable to provide your child with the necessary supports he needs? Without you, your child would become dependent on other caregivers who simply do not possess all of your personal knowledge and insight. However, there are steps you can take now to minimize the natural disruption and disorientation that will occur upon your death or if you become unable to care for your child during your lifetime.

First and foremost, you should put into place supported decision making for your child to assist with personal financial and medical decisions.  Depending on your child’s functioning, this is accomplished by either appointing a legal guardian through a court proceeding or having your child execute a power of attorney and health care proxy.

Second, you should prepare a letter of intent to help loved ones and your child manage a difficult transition when you no longer are the primary caregiver. A letter of intent is an important planning tool for parents of children with special needs (including adult children), and also may be useful when planning for minor children who are not  expected to face special challenges.

Although a letter of intent can be considered one of the most important estate planning documents a parent can prepare, it is not a formal legal document that must be created by an attorney. The goal of a letter of intent is to memorialize your knowledge of your child’s needs so that you may guide future caregivers, guardians and trustees in providing the best possible care to your child. Simply put, a thoughtful letter of intent ensures that those who come after you need not waste precious time figuring out the best way to manage and care for your child.

At minimum, the letter can address the following points regarding your child: family history, daily schedule; food likes and dislikes, medical care, education, government benefits received, employment, residential environment, social environment, religious preferences, behavior management, and funeral arrangements.

Once you prepare, sign and date the letter of intent, you should review the document annually and update it as necessary. It is important that you let your child’s potential future caregiver know the letter of intent exists and where it can be accessed; even better, you can review the document with the caregiver on an annual basis. The letter of intent should be placed with all of your other relevant legal and personal documents concerning your child.

The letter of intent can be a difficult and extremely emotional document to write, as you are envisioning a time when your child is navigating this world without you. However, once it is completed, the first important step has been taken toward creating a detailed road map for future caregivers and trustees. As a parent you also may be relieved to know that you are ensuring the highest quality of life for your child by laying the foundation for as seamless a transition as possible after you are gone.

Learn more about our special needs planning and special education advocacy services at www.littmankrooks.com or www.specialneedsnewyork.com.

Was this article of interest to you? If so, please LIKE our Facebook Page by clicking here or sign up for our monthly newsletter.

Posted in New York Special Needs, Special Needs Trusts | Comments Off on Preparing a Letter of Intent For Your Child With Special Needs
Tags: caregiver, caregiving, guardian, letter of intent

By Amy C. O’Hara, Esq., Littman Krooks LLP

Parents of children with special needs often have unique financial concerns, and one way to ease those concerns is to reduce their tax burden.

There are many tax deductions and credits available that parents may not be aware of. Parents of children with special needs should familiarize themselves with the deductions and credits and take care to document all expenses related to their children’s medical expenses, development and therapy.

Here are 5 useful tax deductions and credits for parents of children with special needs:

1. Medical & Therapy Expenses

The first type of deduction to consider is for medical and therapy expenses. For income tax purposes, learning disabilities are a type of medical condition. This may include autism, ADHD, cerebral palsy, and other learning disabilities.

While these expenses are limited by 10 percent of adjusted gross income, the limitation may be exceeded by certain types of out-of-pocket expenses.

Such expenses can include the following:

• Special schooling such as: tutoring that is specifically intended to address the special needs of the child.
• Regular education when it is intended to treat the child’s special needs.
• Aides that a child may require to benefit from education.
• Exercise programs, if they are recommended by a medical professional.
• Transportation to and from special schools or therapy sessions.
• Equipment, devices and supplies necessary to treat or alleviate a medical condition, including technology items such as communication devices.

2. Specialized Foods

A gluten-free, casein-free diet can be used as a deduction provided it is medically recommended. Generally, only the additional cost of the specialized foods over and above what would be paid for similar items is deductible.

3. Legal Expenses

In some cases, legal expenses related to your child’s special needs may be deductible, for instance if you hire an attorney to help you prove that your child’s medical expenses are legitimate.

Tax Credits

Even more helpful than a tax deduction is a tax credit, which applies directly to the amount of tax you owe. The tax credits most helpful to parents of special needs children are the Child and Dependent Care Credit and the Earned Income Credit. In both cases, a credit that is normally only available for children may also be used for an older child with special needs.

4. Child and Dependent Care Credit

The Child and Dependent Care Credit may be applied when you pay someone to care for your dependent, and it provides a tax credit of up to $3,000 per dependent, to a maximum of $6,000 for two or more dependents.  Child-care, after-school programs and day camp qualify for the credit.

The credit is available for children under the age of 13, but the age limit does not apply to older children with special needs.

5. Earned Income Credit

The Earned Income Credit can also be useful for parents of children with special needs. The credit generally may be applied by families with a low to moderate income and children under the age of 19, or up to age 23 for full-time students. However, for adult children living with their parents, the age limit does not apply.

In Conclusion

Parents of children with special needs know that there are unique challenges involved, including financial hurdles. However, with careful planning and the assistance of an experienced attorney who is sensitive to special needs issues, you can make sure you do what is necessary to reduce your tax burden and protect your child’s interests.

Learn more about Littman Krooks services at www.littmankrooks.com or www.specialneedsnewyork.com.

Was this article of interest to you? If so, please LIKE our Facebook Page by clicking here.

Posted in New York Special Needs, Special Education Advocacy, Special Needs Trusts | Comments Off on Tax Deductions & Credits for Special Needs Families
Tags: tax tips

Moving to another state is a big undertaking for any family, but it can be particularly complicated when a family member has a disability. The secrets to a successful transition are advance planning and a backup plan in case of problems. Here are a few specifics to keep in mind.

Know what to expect with public benefits

If your family member with a disability is receiving Social Security Disability Insurance (SSDI) benefits, there should be no disruption in payments, as long as you inform the Social Security Administration as early as possible of your change of address. Supplemental Security Income (SSI) benefits should not be disrupted either, but the amount could change. In 2016, the federal maximum SSI benefit for an individual is $733 per month. However, some states add an optional state supplement or make food stamps or other benefits available to SSI beneficiaries, so those benefits may vary by state.

Plan in advance for health care needs

Health care is a primary concern, and in this area much can change when moving to another state. In addition to finding new doctors, therapists and other service providers, you should be prepared for changes in coverage. Private health insurance policies may have different coverage or premiums in another state. If you signed up for health insurance through the Affordable Care Act state exchanges, you can take advantage of a 60-day special enrollment period, but be sure to check the eligibility requirements ahead of time. Medicare benefits should not be affected by an interstate move, but Medicaid will need to be reapproved in the new state, and the services and support available through Medicaid varies from state to state.

Special education and other services

While students with disabilities are guaranteed a free and appropriate public education by the federal Individuals with Disabilities Education Act (IDEA), a special needs student’s Individualized Education Program (IEP) will need to be renegotiated. Other services, such as day care, social programs and in-home services vary greatly from state to state. ABLE Act legislation has not yet been enacted in all 50 states, and special needs trusts should be reviewed by an attorney to ensure that they are up to date and there are no problems created by the move.

Moving to a new state is a big project, but creating a checklist and engaging in advance planning will help you have an organized approach. Even with a detailed plan, it is a good idea to have a backup plan, and an emergency fund, in case of pitfalls along the way.

Learn more about our special needs planning and special education advocacy services at www.littmankrooks.com or www.specialneedsnewyork.com.

Was this article of interest to you? If so, please LIKE our Facebook Page by clicking here or sign up for our monthly newsletter.

Posted in New York Special Needs, Special Education Advocacy, Special Needs Trusts | Comments Off on Moving to a New State When You Have a Family Member with a Disability

Siblings are included in the protections of the Family and Medical Leave Act (FMLA) in some circumstances.

The FMLA, enacted in 1993, provides for eligible workers to take unpaid leave for up to 12 workweeks per year because of their own serious health condition or to care for their spouse, parent or child with a serious health condition. Siblings have never been explicitly included in these protections. However, the Department of Labor Wage and Hour Division, which implements the FMLA, has clarified that siblings are protected in certain cases.

The Department has clarified the definition of “son or daughter” in two ways that benefit families who work together to care for a family member with a disability:

First, the Department has clarified that “son or daughter” includes both children under the age of 18, and adult children who are incapable of self care because of a physical or mental disability.

Second, “son or daughter” has been clarified by the Department as including individuals for whom the worker seeking leave is acting “in loco parentis,” which means “in the place of a parent.” This may include siblings who have day-to-day responsibility for caring for the child or adult with a disability.

With these detailed updates from the Department of Labor, it is clear that otherwise-eligible employees who are siblings with the day-to-day responsibility of caring for a brother or sister, including an adult brother or sister incapable of self-care due to a disability, are protected under the FMLA when they must take leave from work to care for their sibling.

Learn more about our special needs planning and special education advocacy services at www.littmankrooks.com or www.specialneedsnewyork.com.

Was this article of interest to you? If so, please LIKE our Facebook Page by clicking here.

Posted in Autism, IEP, New York Special Needs, Special Education Advocacy, Special Needs Trusts | Comments Off on The Family and Medical Leave Act (FMLA) includes siblings for job-protected Leave
Tags: Family and Medical Leave Act, FMLA, siblings

Trusts are a common estate planning tool and are used to keep assets out of a probated estate or to reduce an estate tax burden. Trusts can also be used to protect one’s heirs. There are instances when it may not be in a person’s own best interests to inherit funds directly.

A direct inheritance may prove detrimental in the case of an heir with special needs. The families of individuals with special needs have often arranged their finances such that the individual will be eligible for Supplemental Security Income, Medicaid and other public benefits. These programs are needs-based, which means that if the individual’s income or assets rise above a certain level, the benefits could be lost. In a case like this, a direct inheritance could do more harm than good, and a solution may be a special needs trust or supplemental needs trust, which can be used to provide for certain supplemental needs of an individual while preserving their eligibility for benefits.

In other cases, a person planning their estate may wish to consider certain circumstances in the lives of their heirs that could put an inheritance at risk. This may include a variety of situations. Some heirs may be unlikely to be able to manage money in their own best interests, due to their youth, their spending habits, or circumstances such as a substance abuse issue. There may be reasons that an heir is likely to become a defendant in a lawsuit. In other cases, if an heir divorces, then the divorced spouse may claim a share of assets inherited directly. In the case of a second marriage when there are children from a prior marriage, a person planning their estate may wish to ensure that their grandchildren are provided for, not their child’s second spouse.

A qualified estate planning attorney can design an asset protection trust or spendthrift trust to protect your family’s assets against such risks. The details of the trust and its power to protect assets depend on individual circumstances and state and federal law. Generally, a trust can be used to restrict a beneficiary’s ability to assign his or her interest in the trust to another person and restrict the rights of creditors to reach the assets of the trust. However, it is important to recognize that, depending on applicable law, the trust assets may be able to be reached to satisfy certain obligations, such as child support or taxes. To learn more, meet with an estate planning attorney at Littman Krooks.

Learn more about our special needs planning and special education advocacy services at www.littmankrooks.com or www.specialneedsnewyork.com.

Was this article of interest to you? If so, please LIKE our Facebook Page by clicking here.

Posted in Autism, New York Special Needs, Special Needs Trusts | Comments Off on Trusts and Your Heir with Special Needs

Earlier this year, we interviewed Heather Rogoff Angstreich, Founder/Partner, Special Needs Expos about the upcoming year and events they are holding in 2015. Here’s what she had to say:

1. Why did you create special needs expos? 

All I wanted to do was help other parents and children who were in my shoes. My son, (who is now 10 years old), was diagnosed with Autism when he was two years old.  I attended a small special needs resource fair when he was first diagnosed and found it incredibly helpful.  I love helping people so, when I got laid off, I started Special Needs for Special Kids, a printed special needs resource guide that I distributed across Long Island. I met my partners (Scott and Jamie) through this publication; they became clients. They knew I started the publication because I wanted to help other parents who needed guidance and resources to navigate the world of special needs here in Long Island.  Scott suggested that I should take the publication to another level and we thought we would do a small resource fair at a local JCC to bring some special needs resources together for a one-time event.  Scott and Jamie were no strangers to the special needs community either; they had a close family member who inspired them to get involved.

2. How did you begin this endeavor?

We looked for a venue to hold this little resource fair and ended up booking a much larger space at a local hotel.  We went from one end of the spectrum to the other and kept our fingers crossed that we would be able to fill the space. Our first expo was geared more towards children with special needs, but we did have resources that catered to the adult population too.  Our goal was to have each person that entered the doors to walk out with at least one piece of useful information that day. We estimated that 2500 to 3000 people walked through the doors that day.

3. What locations are you expanding to in 2015? 

Long Island is our “flagship” expo and will be held on April 26^th at the Long Island Hilton. The Special Needs Expo – Westchester will be back on November 8, 2015 at the Westchester Marriott and the Special Needs Expo – New Jersey (northern) will also be back on September 27, 2015 at the Glenpointe Marriott in Teaneck. We hope to expand to Philadelphia in 2016.

4. How does your expo help educate people to advocate for themselves and their family members?

Our expos have a variety of special needs resources, products, services, presentations and demonstrations.  We want people to take advantage of all the exhibitors that have come out.  They are there to answer questions, give support and ideas.  If a person meets the right connection, it can change things for them and/or their loved one.

5. What makes your expo different from other special needs resource fairs in the area?

Our expos are always free to attend and child-friendly (games and/or inflatables and face painting are provided at no cost to the attendee). We offer a wide variety of resources, presentations and demonstrations. We have a quiet room for those that might need to take a break, if they are too overwhelmed. We want to connect these amazing resources with the individuals, families, caregivers and professionals to help make the journey a little less difficult.  Our Long Island events have connected over 300 exhibitors to 5000 attendees in the last two years.  Westchester and NJ events are also growing and we have heard from many of our FB and website followers that the need is there for this service.

6. How do can people find more info about your expos? How do vendors register for an exhibit?

We have a Facebook page: https://www.facebook.com/SpecialNeedsExpos and our official website URL is www.specialneedsexpos.com.There is a tab for attendees to register and a separate one for exhibitors to register and receive more information.  To contact us directly, email us at info@specialneedsexpos.com or call us at 516-279-3727.

Learn more about Littman Krooks services at www.littmankrooks.com or www.specialneedsnewyork.com.

Was this article of interest to you? If so, please LIKE our Facebook Page by clicking here.

Posted in Autism, Events, New York Special Needs, Special Education Advocacy, Special Needs Trusts | Comments Off on Special Needs Expos
Tags: special needs expos

By Bernard A. Krooks, Certified Elder Law Attorney®

A client recently asked the following question: I’m thinking about setting up a special needs trust for my son, who has a developmental disability. Will it mean a lot more work for my daughter, who will be handling my estate?

It’s a fair question, and one we hear a lot. No one ever asks: “could you please give us the most complicated estate plan possible?” Just about everyone wants things as simple as they can be.

When you think about providing an inheritance for your child — or anyone, for that matter — with a disability, there are some realities you just have to deal with. Those realities almost always lead to the same conclusion: a special needs trust is probably the right answer. There are a number of answers to the “can’t we keep it simpler?” question:

In most cases there’s going to be a trust, whether you set it up or not. If you leave money outright to a person with special needs, someone is probably going to have to transfer that inheritance to a trust in order to allow them to continue to receive public benefits. The trust set up after your death will be what’s called a “first-party” (or “self-settled”) trust, and the rules governing its use will be more restrictive. There will also have to be a “pay-back” provision for state Medicaid benefits when your son dies — so you will lose control over who receives the money you could have set aside. Even if no trust is set up, there is a high likelihood that your son will (because of his disability) require appointment of a guardian. The cost, loss of family control and interference by the legal system will consume a significant part of the inheritance you leave and frustrate those who are caring for your son. If you prepare a special needs trust now it sidesteps those limitations.

The trust you set up will not be that complicated to manage. People often overestimate the difficulty of handling a trust. Yes, there are tax returns to file, and possible accounting requirements. Neither is that complicated; neither is anywhere near as expensive as the likely costs of not creating a special needs trust. In any event, your daughter can hire experts to handle anything that she finds difficult. There are lawyers, accountants, care managers and even trust administrators who can take care of the heavy lifting for your daughter — or whomever you name as trustee. The costs can be paid out of the trust itself, so she will not be using her portion of the inheritance you leave, or her own money. Yes, they add an expense — but they can actually help improve the quality of life for both your daughter the trustee and your son with a disability.

Your daughter does not have to be the trustee at all. We frequently counsel clients to name someone else — a bank trust department, a trusted professional, or a different family member — as trustee. That lets your daughter take the role in your son’s life that she’s really better suited for: sister. If it is right for your circumstance, you might even consider naming her as “trust protector.” That could allow her, for instance, to receive trust accountings and follow up with the trustee, or even to change trustees if the named trustee is unresponsive, or too expensive, or just annoying. Trusts are wonderfully flexible planning devices — but that does mean you have to do the planning.

If your son’s condition improves, or he no longer requires public benefits, the trust can accommodate those changes. Depending on your son’s actual condition and the availability of other resources, you might reasonably hope that he will not need a special needs trust — or at least might not need one for the rest of his life. The good news: your special needs trust will be flexible enough to allow for the use of his inheritance as if there were no special needs. The bad news: that is only true if you set up the trust terms yourself — the trust that will be created for him if you do not plan will not have that flexibility.

Simply disinheriting your son probably is not a good plan. Sometimes clients express concern about the costs and what they perceive as complicated administrative and eligibility issues and they decide to just leave everything to the children who do not have disabilities. “My daughter will understand that she has to take care of my son,” clients tell us. That’s fine, and it might well work. But do you feel the same way about your daughter’s husband? What about the grandkids and step-grandkids who would inherit “your” money if both your daughter and her husband were to die before your son (the one with the disability)? What about the possibility of divorce or creditors’ claims against your daughter, or even bankruptcy? Most of our clients quickly recognize that disinheriting the child with a disability is not really a good planning technique.

But who knows what the public benefits system, the medical care available, or my son’s condition might look like twenty years from now? Indeed. That’s exactly why the trust is so important.

What does that mean for your planning? If you have a child, spouse or other family member with special needs — OR if you have a loved one who may have special needs in the future — your plan should include an appropriate trust. The cost is relatively small, and the benefits are significant. In fact, the cost of not doing anything is probably higher – and the opportunity loss from failing to plan is especially high. While doing special needs planning the right way necessarily involves going to a lawyer, it’s relatively easy to find one who specializes in this area of law.

Learn more about special needs planning by clicking here.

Was this article of interest to you? If so, please LIKE our Facebook Page by clicking here.

Posted in Special Needs Trusts | Comments Off on Special Needs Trusts: How Much Trouble Are They to Manage?

Trust funds allow parents and grandparents to ensure that children receive their inheritance slowly over time, rather than receiving it all at once at the age of 18. There are many factors to consider when creating a trust fund, but the impact of the trust on the beneficiaries is one of the most important considerations.

Structuring a trust is an individual process, and should be done with an appreciation for the family’s unique situation. For example, many people in their late teens do not have the responsibility or knowledge to handle a large inheritance, and their personal growth and achievement may be hindered by a windfall of cash. In addition, some teens go directly to college after turning 18, while others take a different path.

One common way to structure a trust fund with a large amount of money is to allow the trustee, who is in charge of managing the trust, to distribute it in three parts: the first when the child graduates from college, the second in the child’s mid-20s, and the final distribution when the child is in his or her early 30s. Until the trust is fully distributed, the trustee can apply it to the beneficiary’s education, healthcare and other expenses as outlined in the trust.

Placing heavy restrictions on a trust can be detrimental in many cases, especially as the beneficiaries get older. Although teenagers may be impulsive, parents and grandparents should trust that after a certain point, they will have the maturity to manage the money. Similarly, secrecy about the value and nature of the trust can cause beneficiaries to feel powerless and even resentful.

A skilled estate planning attorney can help individuals develop a trust that is in alignment with their wishes and the beneficiaries’ best interests.

Learn more about our transition planning services by visiting www.specialneedsnewyork.com.

Was this article of interest to you? If so, please LIKE our Facebook Page by clicking here.

Posted in New York Special Needs, Special Needs Trusts | Comments Off on Structuring the Trust Fund
Tags: trusts