Brian Rubin Attorney Dad www rubinlaw com overview

Brian Rubin Attorney & Dad www. rubinlaw. com

overview… • Just an The BASICS After the break, for an hour: Much more in depth, including: • Selecting Trustees • Impact of the ACA on planning • Impact of Divorce of Parents • Possible “bells & whistles” in SNTs • Common Attorney Mistakes • Required planning for “extended” Families & Friends • And many related topics… of Special Needs Trusts

WHEN / WHY? When are YOU going to die? Gifts and/or inheritances from others? intentional? UTMAs? ILITs? Bonds? unintentional? Person’s own savings ? Is your child in a position to manage their finances themselves?

Where from ? WORK REQUIRES SPECIAL NEEDS TRUSTS FAMILY {INHERITANCES, CHILD SUPPORT, etc. } GOVERNMENT

“Disinherit”

“Directly”

“Moral Obligation”

If NO Will. . State Law…

“Traditional” SPEND-THRIFT SUPPORT TRUST

How to NOT lose SSI or Medicaid? The ANSWER? Special Needs Trust(s)!

Special Needs Trusts rd 3 Party Private & Pooled Versions Self Settled aka, OBRA, 1 st Party, Pay Back… Private (d 4 A) & Pooled (d 4 C)

2 Versions. . . Reserve Supplemental Fund Over & Above Government Benefits ü No $ limit ü Federal ü State ü ü

RD “ 3 PARTY TRUSTS” FOR t s 1 sion r e V INHERITANCES & GIFTS

RD 3 PARTY TRUST INHERITANCE GIFT INSURANCE IRA 401 K SPECIAL NEEDS TRUST Beneficiary’s own assets THEN UPON BENEFICIARY PASSING… PARENT(S) DECIDE: FAMILY CHARITY GUARDIANS

OK… SO INSIDE WILL OR LIVING TRUST ?

NO! NOT! “INSIDE” YOUR WILL OR LIVING TRUST!

Won’t exist until. . .

So NO “Piggy Backing”

BUT I STILL DON’T GET IT ?

Just what IS a Trust?

Just another way of title” to, or “ownership” of, holding “ assets, investments or accounts…

3 rd PARTY SPECIAL NEEDS TRUST So what’s all the paper for? ü Instruction Manual ü “Rules of the Road” Who can use it? üParents üSiblings üGrandparents Anyone. . . üEXCEPT BENEFICIARY Remember - 3 rd Party üParents & Family as Trustees… ®

How to put in the Trust? From your & others’ Wills & Trusts

EXTENDED FAMILY • Instruction letter • Form Codicil • Form Trust Amendment • Trust Certification • Consult with their Attorneys/Advisors

So far just rd 3 Party But what if. . .

BENEFICIARY HAS ASSETS UTMA ift f i G e g r La Law Sui Set tlem t IRA – 401 k ent s g n i v Inheritance Sa ds WILL/TRUST/BENEFICIARY n o B Accou n ts AT 21

If “not that much” …consider spending it down on allowed expenditures, such as: þ COMPUTER, TV, DVD PLAYER… þ VACATION þ PRE-PAID FUNERAL þ PAY OFF DEBTS… EVEN TO PARENTS… þ CLOTHES î BUT MUST BE FOR HIS/HER SOLE BENEFIT…

Otherwise st 1 Party Special Needs Trust. S Federal Law 8/10/93

1 st Party PRIVATE SNT N O I S R ” E s V e p y 2 t “ 2 f o 1 Called. . . “Self Settled”. . . or þ “OBRA 93 Trust”… or nd þ “(d)(4)(A) Trust”… or þ “PAY BACK Trust” þ because…

1 st party SNTs are the versions REQUIRED for Child Support, NOT 3 rd party SNTs!

st 1 Party PRIVATE Trust Medical Malpractice Personal Injury Inheritances & Gifts NOT to 3 rd party SNT Special Needs Trust His/Her own assets, such as savings bonds, & Child Support Then upon passing… The State, even before FUNERAL bill… any left only then: FAMILY CHARITY GUARDIANS

1 st Party Private SNT… “NOT” SO GOOD. . . øOnly if not 65 ø Only by Parents, Grandparents, Courts & Guardians. . . NOT self… SSA Position. . . Courts often require. . . Pay Back. . . ø ø ø

1 st Party SNT 2 VERSION ALSO for TYPE 2 Beneficiary’s st of 1 party SNT OWN Assets… 2 nd TYPE… nd POOLED TRUST Why. . . when needed ?

st 1 Party POOLED TRUST called “(d)(4)(C) Trust” î IF OVER 65 {maybe} î IF NO Parent, Grandparent nor Guardian. . . , and don’t desire to have Judges in control.

st 1 Party Pooled Trust Medical Malpractice Personal Injury Inheritances & Gifts NOT to 3 rd party SNT 1 ST PARTY SPECIAL NEEDS TRUST His/Her own assets, savings bonds, property settlement, child support, maintenance Then upon passing… Not for Profit keeps balance ? if not, then the STATE TAKES, TAKES even before funeral bill… any left only then: FAMILY CHARITY GUARDIANS