Get Help From a Top-Tier Carlisle Special Needs Planning Lawyer
At Keystone Elder Law P.C., our Carlisle special needs planning attorney is a compassionate, experienced advocate for people and families. With a comprehensive understanding of all of the federal and state laws that impact special needs individuals and their families, our firm has the expertise that you can rely on. If you have any questions about special needs planning in Pennsylvania, we are here to help. Contact us today for a fully confidential consultation with a top Carlisle special needs planning lawyer.
What is Special Needs Planning and Why Does it Matter?
Many people with special needs rely on public programs. The two most notable are Medicaid and Supplemental Security Income (SSI). Both Medicaid and SSI are means-tested. Why does that matter for estate planning? If you leave a financial gift (or property) to a loved one in Carlisle who has special needs, you could inadvertently make them ineligible for Medicaid and/or SSI. Special needs planning addresses this problem through legal instruments that preserve benefit eligibility while funding supplemental care. It allows families to set aside resources for quality-of-life expenses without disrupting any government benefits.
An Overview of Special Needs Trusts
A special needs trust (SNT) is the central tool in most special needs planning arrangements. It allows funds to be used for the benefit of a disabled individual without disqualifying that person from Medicaid or SSI. Pennsylvania recognizes three primary types of SNTs:
- First-Party Special Needs Trusts: These trusts are funded with the beneficiary’s own assets (such as a personal injury settlement or inheritance). They are established under 42 U.S.C. § 1396p(d)(4)(A). They must be created before the beneficiary turns 65 and must include a Medicaid payback provision. That means that any remaining funds after the beneficiary’s death reimburse the state for medical assistance paid.
- Third-Party Special Needs Trusts: These trusts are created and funded by someone other than the beneficiary (typically parents or grandparents). These trusts have no Medicaid repayment requirement. Assets in a third-party SNT can pass to other family members after the beneficiary’s death. They can be a great special needs estate planning option.
- Pooled Special Needs Trusts: These trusts are managed by nonprofit organizations under 42 U.S.C. § 1396p(d)(4)(C), pooled trusts combine assets from multiple beneficiaries for investment purposes while maintaining separate sub-accounts. They are often used when professional management is needed.
Other Special Needs Planning Tools
While special needs trusts form the foundation, a comprehensive plan often includes several complementary legal tools. Here is an overview of some common options:
- ABLE Accounts (Achieving a Better Life Experience): Established under the federal Stephen Beck, Jr. ABLE Act of 2014 and implemented in Pennsylvania through the PA ABLE Savings Program, these tax-advantaged accounts allow people with qualifying disabilities to save up to $100,000 without affecting SSI benefits.
- Guardianship and/or Powers of Attorney: When a person with a disability turns 18, parents lose automatic decision-making authority. Depending on the person’s functional capacity, formal guardianship under 20 Pa. C.S. § 5511 or a durable power of attorney may be necessary.
- Letter of Intent and Care Plan: Although not legally binding, a Letter of Intent serves as a critical companion to a special needs trust. It documents the beneficiary’s personal history, medical needs, routines, and preferences to guide future caregivers. The letter helps ensure consistency of care throughout the parents’ or guardians’ lifetime.
Special needs plans should not be one-size-fits-all. Your vulnerable child, grandchild, or other loved one needs a plan that is truly designed to protect their unique needs.
How Our Carlisle Special Needs Planning Lawyer Can Help
If you have a loved one with special needs, it is imperative that you have a specialized estate plan in place. The right strategy can make a big difference. At Keystone Elder Law P.C., we are proud to be leaders in special needs planning in Pennsylvania. With a proven record of client testimonials, families trust us when it matters most. Among other things, our Carlisle, PA special needs planning attorneys are prepared to:
- Conduct a comprehensive, confidential review of your case;
- Gather all relevant medical and financial documents and records;
- Help you and your family set up a special needs trust and other tools; and
- Develop a strategy focused on obtaining the best possible outcome.
Special Needs Planning in Carlisle: Frequently Asked Questions (FAQs)
What is the main goal of special needs planning?
The purpose of special needs planning is to protect a disabled person’s eligibility for means-tested government benefits (like Medicaid and SSI) while preserving financial resources for supplemental needs. A comprehensive special needs plan can make a big difference.
What happens if someone with a disability receives an inheritance without a plan in place?
If a person receiving SSI or Medicaid inherits money directly, those funds count as personal assets and can immediately terminate benefits. In other words, the person must spend down assets below program limits before reapplying. It can cause serious issues.
When should parents or guardians in Carlisle begin special needs planning?
The sooner, the better. Indeed, the best time to begin is early. Ideally, special needs planning should start while parents are still healthy and financially active. Early planning allows time to establish trusts, comply with Medicaid’s five-year lookback rules, and coordinate with their larger goals.
Contact Our Carlisle, PA Special Needs Planning Lawyer Today
At Keystone Elder Law P.C., our Carlisle estate planning attorneys have extensive experience with special needs planning. If you have any questions or concerns about special needs planning, we are here as an estate planning resource that you can trust. Call us at 717-697-3223 or contact us online to set up your fully confidential, no obligation case review. We provide solutions-focused special needs planning in Carlisle, Cumberland County, and all across the surrounding area in Pennsylvania.
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REGISTER HERE for LONG-TERM CARE PLANNINGPower of Attorney
A Power of Attorney can be used to give another person the right to sell a car, home, or other property in the place of the maker of the Power of Attorney. A Power of Attorney might be used to allow another person to sign a contract for the maker of the Power of Attorney (the person who makes a power of attorney is called the “principal”). It can be used to give another person the authority to make health care decisions, do financial transactions, or sign legal documents that the principal cannot do for one reason or another. With few exceptions, Powers of Attorney can give others the right to do any legal acts that the makers of the Powers of Attorney could do them themselves. A General Power of Attorney gives the “power of attorney Agent” or simply “Agent” (the legal name of the person who is authorized to act for the principal) very broad powers to do almost every legal act that the principal can do. When Elder Law Attorneys draft general Powers of Attorney, they still list the types of things the Agent can do but these powers are very broad. People often do general Powers of Attorney to plan ahead for the day when they may not be able to take care of things themselves. By doing the General Power of Attorney, they designate someone who can do these things for them.
Normal Powers of Attorney terminate if and when the principal becomes incompetent. Yet many people do Powers of Attorney for the sole purpose of designating someone else to act for them if they cannot act for themselves. It is precisely when persons can no longer do for themselves that a Power of Attorney is most valuable. To remedy this inconsistency, the law created a Durable Power of Attorney that remains effective even if a person becomes incompetent. The only thing that distinguishes a Durable Power of Attorney from a regular Power of Attorney is special wording that states that the power survives the principal’s incapacity. Even a Durable Power of Attorney, however, may be terminated under certain circumstances if court proceedings are filed. Most Powers of Attorney done today are durable.
Yes. At the time the Power of Attorney is signed, the principal must be capable of understanding the document. Although a Power of Attorney is still valid if and when a person becomes incompetent, the principal must understand what he or she is signing at the moment of execution. That means a person can be suffering from dementia or Alzheimer’s Disease or be otherwise incompetent sometimes but as long as they have a lucid moment and are competent at the moment they sign the Power of Attorney, it is valid even if they do not remember signing it at a later date. At the time it is signed, the principal must know what the Power of Attorney does, whom they are giving the Power of Attorney to, and what property may be affected by the Power of Attorney.
Any competent person eighteen years of age and older can serve as an agent. Certain financial institutions can also serve. There is no course of education that agent must complete or any test that Agent must pass. Because a Power of Attorney is such a potentially powerful document, agents should be chosen for reliability and trustworthiness. In the wrong hands, a Power of Attorney can be a license to steal. It can be a big responsibility to serve as an agent.
For Medicaid
Medicare is health insurance and covers medical services such as physician appointments, therapy, blood tests, x rays, medical procedures and hospitalization. Medicare will sometime pay for rehabilitation in a long-term care facility for a period of 20 to 100 days, but not longer. In long-term care, Medicaid covers the cost of ongoing support services for daily functioning, such as room and board in a nursing home.
Medicaid is a federal program that is overseen by the Center for Medicare and Medicaid Services (CMS). In Pennsylvania, Medicaid is called Medical Assistance and is administered by the Department of Human Services (DHS).
In Pennsylvania, Medicaid funds are not available to pay for assisted living or personal care.
For Medicaid to pay for care in a nursing home, an individual recipient must be determined to need a nursing home level of care by a physician and the local Office of Aging. An individual whose income is not greater than three times the poverty level may keep up to $8,000 of total resources, but may otherwise keep only $2,400. The cash value of life insurance counts as a resource, but one car and a residential home does not count as a resource.
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Keystone Elder Law
At Keystone Elder Law, we believe that the physical, social, legal, and financial considerations of our clients all intertwine. We utilize an interdisciplinary approach to evaluate each area, which allows for the creation of a plan that addresses the concerns of the individual as a whole as well as the family. To this end, our model of practice includes a Care Coordinator (usually a nurse or social worker), whose expertise complements our team of attorneys.
When the road of life is smooth, decisions about legal and financial matters are easy to push aside for “a rainy day.” Planning ahead, however, will allow for more options as you view the map of where you’ve been and where you want to go. Don’t let a crisis limit your choices or derail your plans.
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