PREPAID FUNERAL ARRANGEMENTS FOR A SPECIAL NEEDS TRUST PERSON

The Social Security and Medicaid rules prohibit payment of funeral expenses (after the death of the beneficiary) from a first party trust by the trustee (i.e. one that contains the assets of, or originally belonging to, the disabled person) prior to repayment to the state Medicaid agency. This is a dangerous trap for unwary trustees. There may be no other funds with which to pay for post death burial expenses outside of the assets in the trust. Thus, it is critical that the trustee arrange for payment of a burial plan PRIOR TO the death of the disabled individual. This requires that the burial arrangements be established with a reputable funeral service provider using fully prepaid contracts that are irrevocable. The funds held by or paid to the provider will not be treated as an available resource to the disabled person as long as the amount expended does not exceed $10,000.


See: OKDHS - OAC 317:35-5-41.2(f)

LIFECARE TRANSITION PLANNING FOR THE SPECIAL NEEDS CHILD

Most families that have a special needs (i.e., disabled) son or daughter collect a wealth of information about the special needs of that child, including information regarding medical care, educational issues, names of doctors, consultants, care-givers, special activities, and a host of other important bits of information that are critical to the ongoing care of their child.

However, experience with our clients has shown that, in spite of the parent’s good intentions, much of that information is held and remains “between the ears” of the parent rather than in one conveniently organized and well-documented format that would be readily available and transferrable to a successor guardian, caregiver, or Trustee for the disabled child in the event of the loss of life or disability of the parent.

We think it critically important that families with special needs children build a “Lifecare Transition Notebook” to contain such relevant and critically important information in a clear and well organized manner.  Such a notebook will be of priceless value to another family member or friend who takes on some responsibility for caring or overseeing care for the special needs child after the parent can no longer do so. 

In addition, providing a copy of the “Lifecare Transition Notebook” to the professional Trustee who may eventually assume responsibility for managing the Special Needs Trust will help the Trustee have additional and critical information to assist the Trustee in making critical investment or disbursement decisions involving the Trust.

We at Barber & Bartz can provide such a personalized “Lifecare Transition Notebook” to our clients, if requested, as part of the estate and special needs planning services that we provide.

SPECIAL NEEDS LAW MONTH

The National Academy of Elder Law Attorneys (NAELA) has designated October as Special Needs Law Month.  Individuals with disabilities require specialized legal care due to their reliance on government benefits for their medical care and other daily needs.  Unfortunately, becoming eligible for government benefits can be a complex and daunting process.  Even after eligibility has been successfully obtained, due to the changing and evolving guidelines for maintaining eligibility for benefits, legal assistance is often still required.

However, families with a loved one with special needs don’t have to figure out the government benefits system alone; they can enlist the aid of attorneys with expertise in special needs law to assist them.  The designation of October as Special Needs Law Month helps to spread the word that there are knowledgeable legal professionals willing and able to help.

We hope you will join us this month in spreading awareness about Special Needs Law Month.  Any increase in the understanding and awareness can only serve to enhance the lives of disabled individuals, and their families.