Our Hersey Elder Lawyers Have Special Needs Planning Experience
At Keystone Elder Law P.C., our Hershey special needs planning lawyers are knowledgeable, solutions-focused advocates for families. Special needs planning is complicated. It is crucial that you have a reliable professional on your side. Do you have any questions about special needs planning in Pennsylvania? Contact our Hershey estate planning lawyer today for a confidential consultation. Our firm is here to help you protect your family.
Leaving Inheritance Directly to a Special Needs Loved One Could Cause Problems
Do you have a child, grandchild, niece/nephew, or any other loved one with special needs? There could be estate planning challenges. If so, it is imperative that you take a proactive approach to estate planning. Here is the challenge: Leaving an inheritance directly to a loved one with special needs might inadvertently disqualify them from receiving crucial government benefits. Many people with special needs receive financial support or other benefits through Medicaid and/or Supplemental Security Income (SSI). These are strictly means-tested federal programs. An inheritance could render a special needs person ineligible for these benefits. There is good news: Through a Special Needs Trust (SNT), you could leave assets/property to support a special needs loved one without undermining their eligibility for Medicaid or SSI.
The Solution: A Special Needs Trust
Special Needs Trusts (SNT) are designed to manage resources for a person with disabilities without adversely affecting their eligibility for public assistance programs. Put another way, These trusts provide a way to support the individual’s lifestyle and needs over and above what government benefits cover. The funds within a qualifying SNT can be used for various expenses—including housing, education, recreation, and personal care. Establishing an SNT helps to ensure that the beneficiary maintains access to necessary public benefits—Medicaid, SSI, and any other means-tested program—while still receiving financial support. There are two types of Special Needs Trust that can be set up in Hershey, PA:
- First-Party Trust: A first-party special needs trust is funded with the assets of the individual with disabilities. It is a type of trust that allows the individual to retain eligibility for government benefits while using their own assets for supplemental needs.
- Third-Party Trust: A third-party special needs trust is established by someone other than the beneficiary. As part of your estate plan, you can set up a third-party SNT on behalf of a loved one, such as a child or grandchild.
Parents of Special Needs Loved One May Need to Make More Comprehensive Plans
If you are the parent or guardian of a child (adult or minor) who has considerable need, you should set up a more comprehensive plan for them as part of your estate plan. Doing so is especially vital if your vulnerable child cannot reasonably manage his or her own affairs. Proactive special needs planning typically includes setting up financial provisions through special needs trusts and securing future guardianship arrangements. You should also consider things like long-term healthcare and personal care needs.
How Keystone Elder Law Can Help With Special Needs Planning in Hersey, PA
If you have a loved one with special needs, you need to take a specialized estate planning approach. At Keystone Elder Law P.C., we have the skills and experience to help families navigate the complexities of special needs planning. Let us put the right plan in place to protect your vulnerable loved one. We are proactive. More specifically, our Hersey special needs planning attorney will:
- Hear your story and answer estate planning questions;
- Advise you on the available special needs estate planning options; and
- Put the right plan in place for your family, including setting up a special needs trust.
Special needs planning is complicated. A Special Needs Trust (SNT) is often the right estate planning solution, but there are many nuances that should be considered and addressed. We provide truly personalized legal representation. With a history of testimonials from former clients, our Hershey, PA estate planning attorneys have the experience that you can rely on.
Contact Our Hershey, PA Special Needs Planning Lawyer for Immediate Help
At Keystone Elder Law P.C., our Hershey special needs planning lawyer is standing by, ready to help you and your family find the best solution. If you have specific questions or concerns about special planning, please do not hesitate to contact us today. We provide special needs planning representation in Hershey, Dauphin County, and all across the wider region.
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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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Empowering Clients with Holistic Planning at
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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