February 2024

You know at some point you will not be around to provide care for your special needs child, which has probably already led you to consider taking out a life insurance policy that will pay out benefits to cover the care of your child. A first step is to determine how much money your child’s care will require. Forecasting the ongoing and lifetime costs associated with caring for someone with special needs is going to vary depending on the family involved. Still, there are some general guidelines any parent can benefit from. Assess current ongoing needs  When evaluating the continual needs of your child, you should consider the regular expenditures you currently make on your son or daughter. Your child may require medic al care , therapy sessions, specialized equipment and caregiver support, all of which should go into a cost forecast. Also consider transportation costs for medical appointments and other essential activities. Forecast lifetime costs In addition to immediate needs, project the lifetime costs of caring for your child. Medical treatments, therapies and any other foreseeable expenses are bound to add up through the lifetime of your child. Also consider the living arrangements of your offspring and how much it will take to sustain them for the life of your loved one. Deduct government assistance When calculating life insurance coverage, deduct any support your child receives from government assistance programs, such as Medicaid and CHIP. These programs reduce your financial burden and allow for a more accurate assessment of the coverage needed to bridge the gap between your available resources and the needs of your child. At the same time, you should build protection into your estate plans so your child does not lose out on government benefits. You could structure your life insurance policy to pay out to a special needs trust. This trust will manage the funds on behalf of your child without jeopardizing access to government assistance. With your care calculations in mind, you may also directly place money in the trust in addition to planning for a future life insurance payout. Thanks to the flexible nature of estate planning, you have a variety of options to work with.

Acting as a trustee involves understanding the legal basis for you to make certain decisions regarding a trust. This can include selling off property contained in the trust. Without established authority to sell off trust assets, you could end up in probate court if the trust beneficiaries decide you lack the power to conduct any sales of trust property. Trust documents as authorization A trust is a legal arrangement where a trustee manages assets for beneficiaries. The terms of the trust, outlined in trust documents created by the trust creator, provide the rules and instructions you as the trustee must follow. The trust documents give the trustee authorization to manage trust assets, which may include selling some or all of the trust property. The trust instructions should also tell you what to do with the profits, if you are to invest them or distribute them to beneficiaries, among other possibilities. Beneficiary permission If the trust documents grant you explicit powers and even requirements to sell trust assets, you should not need permission from beneficiaries unless the trust states otherwise. Still, having beneficiaries sign off on the property sales could further secure your position and prevent objections later on. Trustees selling to themselves You might also be a beneficiary of the trust. If other family members are beneficiaries, you may seek approval before selling trust assets to avoid conflicts. This can be especially important if you wish to sell trust property to yourself. Since selling trust assets to yourself could be a problematic situation, it may be prudent to examine the trust documents carefully as they might forbid you from selling assets to yourself or to another trust you administer. However, this is less of a problem if you are also the trust creator and placed the property in the trust in the first place.  Managing a trust entails making sure you do not violate your fiduciary duty to trust beneficiaries. Maintaining transparency and avoiding financial decisions that appear to serve your interests above the beneficiaries can keep you from unnecessary litigation.

Social Security Disability benefits provide financial support to individuals unable to work due to a disability. The process of obtaining these benefits can be complex and challenging. Many applicants find themselves facing denials for various reasons. Understanding these reasons can help applicants navigate the system more effectively. 1. Lack of sufficient medical evidence One common reason for SSD claim denials is a lack of sufficient medical evidence. The Social Security Administration requires detailed medical records documenting the nature and severity of the disability. If the medical evidence is incomplete or does not sufficiently demonstrate the extent of the impairment, SSA may deny the claim. 2. Failure to follow treatment plans Another reason for denial is the failure to follow prescribed treatment plans. The SSA expects claimants to pursue appropriate medical treatment and follow the recommendations of their healthcare providers. Failure to do so can raise doubts about the severity of the disability or the individual’s willingness to improve their condition. 3. Income and work history Income and work history play a significant role in determining eligibility for SSD benefits. Applicants must meet specific work requirements and pay enough Social Security taxes to qualify for benefits. If the SSA determines that the applicant is still capable of performing substantial gainful activity despite their disability, it may lead to a claim denial. 4. Lack of cooperation Failure to cooperate with the SSA during the application process can also lead to denial. This includes not providing requested documentation, missing appointments or not responding to inquiries. Cooperation is necessary for the SSA to assess the claimant’s eligibility accurately.  Approximately 9 million people received SSD benefits in 2022. Receiving a denial can be discouraging. Applicants have options to get the support they need through an appeal process.