Ensuring the Well-being of Disabled Adults in South Central Pennsylvania
In South Central Pennsylvania, many adults face the challenge of caring for themselves due to special needs arising from developmental disabilities, accidents, or conditions like dementia. These individuals require ongoing financial and healthcare support, often relying on public assistance programs such as Supplemental Security Income (SSI) and Medicaid. However, balancing the desire to help these loved ones with preserving their access to essential benefits can be complex. This is where the expertise of a Mechanicsburg special needs planning attorney becomes invaluable. At Keystone Elder Law, P.C., we specialize in advising families on various legal strategies to safeguard the financial and legal needs of their special needs family members.
The Role of a Special Needs Trust
Maintaining eligibility for SSI and Medicaid, which are means-tested programs, is crucial for special needs adults. These programs impose income and asset thresholds that recipients must stay within. Consequently, a substantial gift or inheritance from a family member can jeopardize their eligibility. However, families still want to support and care for their loved ones. To reconcile these objectives, a special needs trust (SNT) is often the ideal solution. A special needs trust is designed to hold specific assets that can be utilized for the benefit of the special needs adult without impacting their income or asset limits.
There are two types of special needs trusts:
- First-Party SNT: This type of trust is funded with assets that previously belonged to the beneficiary, such as personal injury settlements or inheritances. It allows individuals to retain access to their rightful assets while preserving their eligibility for SSI and Medicaid.
- Third-Party SNT: A third-party special needs trust is funded with assets provided by someone else, typically a parent or family member who wishes to provide for their special needs relative. By establishing this trust, family members can ensure ongoing support for their loved ones without jeopardizing their eligibility for benefits.
Expenses Covered by a Special Needs Trust
Once a special needs trust is established, a trustee manages the funds to cover various expenses for the beneficiary, which may include:
- Medical services not covered by Pennsylvania Medical Assistance or private insurance
- Costs associated with non-medical care
- Travel expenses
- Educational needs
- Entertainment and other supplemental costs
Consult Keystone Elder Law, P.C. for Expert Special Needs Planning
Addressing the legal and financial needs of a special needs individual requires a comprehensive understanding of the applicable laws and regulations. Additionally, considerations such as guardianship and estate planning may arise. Our experienced Mechanicsburg special needs planning attorney will work closely with you to review your loved one’s situation, offering personalized guidance and tailored solutions. Schedule an initial consultation with Keystone Elder Law, P.C. today and take the necessary steps to secure the well-being and future of your special needs family member.
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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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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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