CARES Act Payment Doesn’t Affect Benefits or Taxes
This week we heard from a client about his brother’s CARES Act payment: “My brother Dave, who receives SSI and is on AHCCCS, just got his CARES Act check for $1200. Actually, I got it, since I am his representative payee. I am very worried that he might lose his long-term medical care benefits under […]
Explaining Self-Settled Special Needs Trusts
New clients frequently come to us after they have been told that they need to “get” or “set up” a special needs trust. They often don’t realize that there are different kinds of special needs trusts. Sometimes a self-settled special needs trust is the right answer. In some cases the right approach is a third-party […]
New Social Security Rules Ease Trust Eligibility Process
How can you meet Social Security rules on asset and income eligibility? If you have resources, you might be able to transfer them to a special needs trust. The idea has been around for quite a while. Still, a lot of questions have lingered over details of the eligibility rules. A recent release of new […]
Two Words (“The Individual”) Make a Big Difference
DECEMBER 12, 2016 VOLUME 23 NUMBER 46 Congress may be in a historic post-election lull, but the end of the year can sometimes see surprising, bipartisan progress. With passage by the U.S. Senate of the Special Needs Trust Fairness Act (a very small part of the 21st Century Cures Act) a significant change has been […]
Unreachable Joint Account Makes Applicant Ineligible for Medicaid
NOVEMBER 14, 2016 VOLUME 23 NUMBER 43 Paul (that’s not his real name) needed long-term care. His health and his mental capability had both declined, and he could no longer handle his personal affairs nor take care of himself. Paul’s assets included a car (titled in his and his daughter’s names) and three Bank of […]
Good News: The IRS Simplifies Its Proposed ABLE Act Rules
NOVEMBER 23, 2015 VOLUME 22 NUMBER 43 The Achieving a Better Life Experience (ABLE) Act initially looked like it would provide important opportunities to people with disabilities. Although much work was left to the Internal Revenue Service, the Social Security Administration and individual states, advocates hoped that it might open up a simple choice for […]
Income Taxation of the Self-Settled Special Needs Trust
MARCH 16, 2015 VOLUME 22 NUMBER 11 This time of year, we are often asked about income tax issues — especially when a trust is involved. It may take us several newsletters, but let’s see if we can’t demystify the income taxation of trusts. We will start with the type of trust we most often […]
Medicare Savings Programs: QMB, SLMB, QI, QDWI and Extra Help
FEBRUARY 9, 2015 VOLUME 22 NUMBER 6 Health care programs for the elderly, the poor and the disabled can be complicated and confusing. We frequently find that clients are unclear about the differences — in eligibility and in coverage — between Medicare and Medicaid, for instance. Add in the fact that Arizona calls its Medicaid […]
Can a Special Needs Trust Pay Credit Card Bills? Security Deposit?
JANUARY 21, 2013 VOLUME 20 NUMBER 3 Administering a “special needs” trust can be a challenge. The rules often seem vague, and they occasionally shift. What may seem like a simple question might actually involve layers of complexity. Sometimes an expenditure might be permissible under the rules of, say, the Social Security Administration, but not […]
Not a Policy Wonk or Wannabe? Skip This Week’s Elder Law Issues
AUGUST 6, 2012 VOLUME 19 NUMBER 30 The Director of Arizona’s Medicaid program (AHCCCS – the Arizona Health Care Cost Containment System) testified last month before the United States Senate Special Committee on Aging, and his remarks caught our attention. Director Thomas Betlach was testifying about “dual eligibles” — people who are eligible for both […]
Why You Should Not Create a Special Needs Trust
JANUARY 16, 2012 VOLUME 19 NUMBER 3 Let’s say you have a child with “special needs,” or a sister, brother, mother or other family member. You have not created a special needs trust as part of your own estate plan. Why not? We know why not. We have heard pretty much all the explanations and […]
Can My Brother’s Special Needs Trust Pay His Property Taxes?
DECEMBER 6, 2010 VOLUME 17 NUMBER 37 A client’s question: My brother has a special needs trust, and I am the trustee. He lives in his condo and gets services from AHCCCS and ALTCS. Can the trust pay his property taxes? Interesting question. The answer isn’t as easy or straightforward as it ought to be. […]
