PLANNING MEETING WITH FAMILY/FRIENDS : TOPIC SUGGESTIONS FOR FUTURE NEEDS DISCUSSIONS

You, your loved one with special needs, if applicable, and your team of professionals should work collectively to help develop a life care plan that best suits the needs of a person with a disability. Here are some recommended topics of discussion.

LETTER OF INTENT (LOI)

(Recommended to be completed prior to meeting)

• Explain what a Letter of Intent is. A Letter of Intent can be used as part of a special needs estate planning process. Although it is not legally binding, this document provides direction for the person(s) who will care for the dependent with special needs in the future. It should detail medical history, daily care needs, housing and services, as well as specific wishes and expectations as they relate to the dependent's future. It is a working document for the future caregiver(s) to follow that is updated regularly.
• Discuss the process of your Letter of Intent (written or video format) with your family/friends/professionals and make any necessary updates and changes (the LOI is a work in progress, it is never fully done and needs to be updated as situations change)
• Advise your family/friends/professionals where your Letter of Intent is located, should it need to be accessed.

GOVERNMENT BENEFITS

• Inform your family/friends what government benefits your loved one with special needs is receiving, if applicable.
• Government benefits may help to provide for the needs of a loved one with special needs in the form of medical treatments and supplies, equipment, financial assistance and more. Some supports they may be entitled to, while others they may have to apply and qualify for. Here are some examples, however, benefits vary by state and jurisdiction.

GOVERNMENT BENEFITS 

Entitlement Benefits	Public Assistance
Social Security Retirement Income	Supplemental Security Income (SSI)
Social Security Disability Insurance (SSDI)	Medicaid
Family benefits	Public Supports Supplemental Nutrition Assistance Program (SNAP) Temporary Assistance for Needy Families (TANF) Children’s Health Insurance Program (CHIP)
Spouse and Survivor Benefits
Children’s Disability Benefit
Medicare

For more information, visit ssa.gov

• Communicate the importance of not having any assets in your dependent's name over the $2,000 limit, in most states, for them to continue qualifying for SSI and Medicaid, if applicable. Examples of such assets include:
  • Cash, art, jewelry, etc. worth more than $2,000
  • Inheritance and inherited assets
  • Insurance benefits

BENEFICIARY DESIGNATIONS

• Recommend everyone review their beneficiary, transfer on death (TOD), paid on death (POD) designations on their accounts, such as life insurance policies, bank accounts, and align with all legal documents (wills, trusts, etc.) to ensure money is not left directly to the dependent with special needs or it could disqualify their eligibility for government benefits.
• There are distinct ways to leave money to individuals with special needs so that their government benefits are not lost, such as through a Special Needs Trust or ABLE Account.

SPECIAL NEEDS TRUSTS BENEFITS

• If you have a Special Needs Trust already established or plan on setting one up, explain to your family that money can still be left to an individual with special needs by listing your dependent's special needs trust as the beneficiary.
• Explain what a special needs trust is in general and how it can benefit your loved one with special needs: A special needs trust may offer a means of protecting a dependent with special needs' eligibility for government benefits, while addressing their ongoing care and needs. In general, a trust is an arrangement by which property is held by one party (the trustee) to benefit someone else (the beneficiary). Different types of trusts suit different needs and may have different tax implications. There are two main types of special needs trusts: first party and third party depending upon the source of the funds. A trust created to benefit a person with special needs can:
  • receive assets, such as an inheritance, a court settlement, an insurance claim payment, gifts of money, or life insurance proceeds,
  • protect current or future government benefits, and
  • pay for medical care, special equipment, education, entertainment, transportation, and more.
• Consult an attorney who has experience with special needs planning. A financial professional with experience in working with special needs families can help with funding options for special needs trusts.