Selected Topics in Special Needs Planning

One of the most challenging aspects of special needs planning is directing retirement plan assets to a special needs child in a tax-efficient manner. For this presentation, Melanie Marmion will draw on her tax and estate planning background and will try to bridge the gap between the technical complexities of the law regarding retirement plan distributions and the practical application to the special needs world.

Settlement planning for Medicare recipients and those who may soon receive Medicare became more difficult when the agency that runs Medicare insisted that the program’s future interest in personal injury settlements needed to be protected. In attempting to address this issue, settlement planners looked to the workers’ compensation world and adopted the Medicare Set-Aside (MSA) arrangement as a possible solution. Yet there are many difficult questions and gray areas in whether or not an MSA is even necessary or required. Who should it be used for? When it is utilized, how much of the settlement should fund it? What are the administration requirements? How does it affect the person who also receives Medicaid? Allow national settlement planning expert Tim Nay to answer (or debate) all of these questions as they provide a glimpse into this exotic settlement-planning tool.

Special needs planning was given a big boost when two bills recently became law. The ABLE Act and the Military Survivor Benefit Plan provide new opportunities for the special needs planner. The ABLE Act gives an SSI recipient the opportunity to hold funds in an account (of up to $100,000) without interfering with SSI or Medicaid eligibility. Yet, there are many rules and requirements that need to be understood. The Military Survivor Benefit Plan for the first time allows a child with special needs to receive a parent’s military survivor benefit left in a special needs trust. Before this act, the child with special needs could never receive a military pension except outright, often resulting in the loss of SSI and Medicaid. Leading special needs advocate Theresa Varnet will share the latest information on these two planning opportunities and how they can work for your clients.

The Affordable Care Act has opened up a wonderful new world of opportunity for persons with special needs: access to private health care. But before shedding Medicaid coverage altogether, it is important to understand the limitations of both private insurance and Medicaid. Which is the best program? Where are the breaks in coverage? What questions need to be asked? What policies need to be reviewed? Let Ann Koerner, president of National Care Advisors, guide you through the process for determining a client’s best health care coverage option.

Pooled trusts have become an integral part of special needs planning. Yet selecting and evaluating pooled trust programs is an under-appreciated aspect of special needs planning. Pooled trusts come in many shapes and sizes. Services will vary widely. Different fees will be charged. There may be limited investment platforms. The charity may (or may not) negotiate its right of recovery. Is the charity solvent? How are clients supposed to navigate these shifting waters? How can you help them select the right trust? Let national pooled trust expert Travis Finchum explain what planners should look for when recommending pooled trust programs.

It's common knowledge that the divorce rate hovers in the 50+ percent area. When there is a special needs child involved, studies have shown the divorce rate can climb to between 75 and 90 percent, depending on the special needs of the child. Further, persons with disabilities will often divorce at higher rates than the general population. Too often, family law attorneys are ill equipped to provide proper public benefit and estate planning. Dealing with these issues is the primary purpose of the special needs planner. Michele Fuller, a nationally recognized special needs planning expert, will summarize the essential issues that must be resolved when divorce occurs and persons with special needs are involved.

Our clients and their families often ask about the effect of an SSI recipient working and how it will impact his or her SSI. Can a person with a disability work? Is there an effect? What programs are available? Let this nationally recognized expert in all things Social Security advise us on the various work incentive programs for SSI recipients and make recommendations on which programs may suit our clients best.

Special needs trusts have come a long way in a short period of time. Yet there are still a lot of poorly drafted special needs trusts. All too many trusts are drafted simply to preserve eligibility for public benefits, even though families have larger planning issues: primarily planning for a child with special needs’ advocate, protector, defender, financial manager, and provider of food, clothing, shelter, transportation, and medical care. Listen to Vincent Russo, one of special needs planning’s leading luminaries, discuss these issues and the recommended drafting tips to protect persons with special needs.

The special needs planner will often be asked to review existing special needs trusts to see if they meet the requirements of the public benefit programs and the intent of the persons who established it. When evaluating these trusts, what should the practitioner be on the lookout for? Where do the traps for the unwary lie? What is the difference between best practices and barely adequate? Once a trust has been reviewed and is found wanting, can it be fixed? Kevin Urbatsch, ASNP’s National Director, will review the provisions he looks for in (d)(4)(A) and third-party SNTs and how to fix offending trust documents.

Due to technical difficulties, beginning at 38:54 and ending at 53:28 the sound quality of this video is compromised by a slight echo.

Financial planning for persons with special needs is a highly specialized form of planning. The goal is always to provide the largest amount of resources to cover a lifetime of need. Often it is like doing a retirement plan for a teenager because of the inability of many persons to obtain employment. Very few financial professionals understand the nuances of doing this planning. Let two of the nation’s best financial planners help you understand why a person with special needs requires special planning. Mr. MacDonald and Ms. Whitmore will discuss the best way that parents can financially plan for their children and the different options for handling the litigation recovery of a person with special needs.

The Special Needs Trust submitted to the SSA has been denied and the SSA has issued an overpayment notice. What if the SSA is right? Can you fix it? What if the SSA is wrong? What are the next steps? Are there any land mines? Can you be paid? Let the most experienced Social Security attorney you have ever met -- David Lillesand -- describe how you can protect your clients while at the same time protect yourself. David will review the SSA appeals process and share practical tips and recommended processes.

Running a successful special needs planning practice is a satisfying career. You are assisting people who have been historically unrepresented throughout history. Yet, you still need to make a living. National special needs planning expert Michele Fuller will present strategies for building a successful practice. She will discuss ways to find clients, efficiently do the client’s work, and make those clients lifelong marketers for your practice.