We are Leaders in Special Needs Planning in Pennsylvania
At Keystone Elder Law P.C., our Pennsylvania special needs planning lawyer is a compassionate, experienced advocate for families. We know that families who have loved ones with special needs have unique needs. With extensive experience handling special needs trusts and other special needs planning matters, our firm has the expertise that you can count on. If you have any questions about special needs planning, we are here to help. Contact us at our Mechanicsburg law office for a fully confidential consultation with a top-rated Pennsylvania estate planning attorney.
Family Member With Special Needs? Estate Planning Brings Challenges
Special needs have specialized estate planning needs. Their close family members and other loved ones should be sure to put a proper plan in place to effectively protect their rights and their interests. Here is the challenge: Leaving money or property to a special needs loved one directly through a will may inadvertently disqualify your loved one from receiving vital government benefits, such as Medicaid or Supplemental Security Income (SSI). Of course, you do not want to leave them out. You want to ensure they are financially secure and properly cared for. There are options available. The key point to remember is that special needs planning requires a careful strategy. Most often, a special needs trust is the best tool for this specific situation.
A Special Needs Trust Provides the Solution
A special needs trust is one of the most important estate planning tools. It is a unique type of trust that is designed to hold and manage assets for a person with disabilities without affecting their eligibility for needs-based government benefits like Medicaid and/or SSI. Unlike a direct inheritance, funds in a properly drafted SNT are not counted as the beneficiary’s personal assets. In other words, a special needs trust allows family members and other loved ones to provide financial support while preserving the recipient’s access to essential public benefits. How does a special needs trust actually work? The trust is managed by a trustee. He or she is a fiduciary that is empowered to control how and when funds are distributed, ensuring they are used for approved purposes and for the sole benefit of the special needs person.
Two Types of Special Needs Trusts in Pennsylvania
Are you preparing to set up a special needs trust to help provide support for a vulnerable child, grandchild, or other loved one in Pennsylvania? A key thing that you should know is that there are actually two different types of special needs trusts. Here is an overview:
- First Party: A first-party special needs trust is funded with the assets of the person with disabilities. Most often, it is funded with money from an inheritance, personal injury settlement, or other source belonging to the beneficiary. It is a type of trust that must be created before the beneficiary turns 65 and must comply with strict federal and state rules. It allows the individual to qualify for or maintain Medicaid and SSI benefits despite having personal assets. However, upon the beneficiary’s death, any remaining funds must be used to reimburse the Commonwealth of Pennsylvania for Medicaid benefits received
- Third Party: When possible to set up, a third-party special needs trust can be an even more effective option. It is funded with assets belonging to someone other than the person with disabilities, such as parents or grandparents. A third-party special needs is often created as part of a family’s estate plan to support a loved one without undermining their eligibility for public benefits. It also has more flexibility than a first-party trust. Notably, a third-party special needs trust does not require Medicaid payback upon the beneficiary’s death
Why Trust Our Pennsylvania Special Needs Planning Attorney
Special needs children and adults have specialized estate planning needs. A “standard” estate plan is simply not good enough if you have a child, grandchild, or other close loved one with serious special needs. The founder of Keystone Elder Law P.C., Patrick Cawley puts people and families first. Along with other things, our Pennsylvania special needs planning lawyer is ready to:
- Hear your story and answer questions about your rights and your options;
- Gather and prepare all supporting financial documents and records; and
- Set up a special needs trust and put other relevant estate planning documents in place.
Special Needs Planning in Pennsylvania: Frequently Asked Questions (FAQs)
Can an inheritance affect a person’s eligibility for government benefits in Pennsylvania?
Yes, absolutely. This is one of the most important things to know about special needs planning. Receiving an inheritance directly can disqualify a person with special needs from programs like SSI and Medicaid. To avoid this, funds should be placed in a properly structured special needs trust. Planning in advance is a must. A top-rated Pennsylvania special needs planning lawyer can help.
What is a special needs trust, and how does it work in Pennsylvania?
A special needs trust (SNT) allows a person with a disability to receive supplemental funds without jeopardizing their eligibility for means-tested government benefits like Medicaid or SSI. The trust holds assets for the beneficiary’s benefit and must be carefully drafted to comply with federal and Pennsylvania-specific rules. Distributions can be used for things like education, therapy, transportation, and personal items.
Why would my family need a special needs plan if my child already receives government assistance?
Government programs often provide only the bare minimum for healthcare and living expenses. A special needs plan allows you to supplement your child’s quality of life with additional resources for education, recreation, and personal care. Remember, leaving money or assets directly to a loved one who is receiving means-tested government benefits could render them ineligible for support. You do not want your generous gift counted against them. A special needs trust is the solution.
Contact Our Pennsylvania Special Needs Planning Lawyer Today
At Keystone Elder Law P.C., our Pennsylvania special needs planning attorney is skilled, compassionate, and committed to providing solutions-focused legal representation. If you have any specific questions or concerns about special needs planning, we are more than ready to help. Contact us today to set up your fully confidential, no-obligation initial case review. We provide special needs planning services throughout the Commonwealth of 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.
What an amazing team you have!!! Taking charge and getting things done, but also being so understanding and compassionate
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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