<p>I only asked because sometimes parents settle money on their adult kids who are disabled, or give them money, or buy expensive things for them like cars. If the money/gifts are not in a special needs trust, then the adult child can be ineligible for Medicaid and other government disability benefits that they would otherwise be entitled to.</p>
<p>dstark, we are in NJ. Dont know if other states are different.
When we signed our DD for SSI at age 18, she automatically got medicaid as well.
That didnt mean much for her since she is able to continue on my (better) employer health coverage.
BUT earlier this year, there was a change here. All disabled people who wanted to continue to receive funding for day services, as our DD does, HAD to be on medicaid. So now, i watch that carefully to make sure her SSI stays in place so her budget is secure.</p>
<p>Her “self directed day services” budget pays for life skills programs, YMCA membersip, classes/lessons of many kinds. It is through our DDD (Division of Developmental Disabilities) at the state.</p>
<p>CF, you make good points. My wife and I so have to clean things up. If we both died tomorrow, there would be some issues. </p>
<p>Mr. Fang and I had a useful meeting with an estate/tax lawyer to make sure that things were situated properly for Fang Jr in case of our sudden death. I recommend it for other parents of disabled kids.</p>
<p>Can a regular trust be converted to a special needs trust? As part of their divorce settlement, my friend insisted on a trust fund for their disabled son but it is just a regular trust fund. He is 18 now with a mental age of 7. Dad wouldn’t probably have agreed to the special needs at the time as he was in big time denial. Wondering if it is to late to remedy the situation. </p>
<p>Musicmom, your set up sounds similar to our situation except we haven’t switched to medicaid yet.</p>
<p>Do you have a revocable living trust with instructions to fund a special needs trust upon your husband’s and your death? Or do you have a separate special needs trust? If so, is it funded? </p>
<p><a href=“FAQ's special needs trust attorney California”>http://www.ca-specialneedstrusts.com/faq.htm</a></p>
<p>This may be our set up. We may have to change this. This is very confusing. :)</p>
<p>"Some attorneys tell me they can prepare a testamentary special needs trust for me. What is the difference between a testamentary special needs trust and a stand-alone Special Needs Trust?</p>
<p>Some attorneys add a few provisions inside a regular revocable living trust and advise their clients that it is a sufficient special needs trust. The provisions are actually a testamentary trust, and consist of about ten paragraphs, which direct the trustee to set up a trust for your child with Autism after both of you (parents) die. The testamentary special needs trust has no name immediately because it does not exist yet. After both parents die, it becomes irrevocable, and without going to court, it cannot even be amended to be made current with changes in the law. As part of the parents’ estate, it is subject to the parents’ creditors and lawsuit claims. It does not name an advocate, or usually successor trustees, and does not nominate a conservator or guardian for the special needs person. In addition, grandparents or other persons who die before the parents cannot leave inheritances to it. Only the parents, or persons who die after the parents can fund a testamentary trust. If the grandparents die before the parents and leave an inheritance to a special needs child without a stand-alone special needs trust, the inheritance, if over $2,000, is a gift to the federal government, as the child will be disqualified from benefits until the inheritance is spent down. You can avoid all of these problems, and protect your child in many other ways by establishing a Special Needs Trust for your child with Autism."</p>
<p>Swimcatsmom, I do not think it is too late to open a sprcial needs trust except the young man is going to get limited government support if he has a regular trust fund more than $2,000 in his name. A lawyer is needed that specializes in special needs trusts.</p>
<p>He has considerably more than $2000. I was reading that certain non financial govt help is based on being Medicad eligible and I don’t think he will be. He also has full access to the trust funds when he turns 25 which is likely to be a disaster. He has no understanding of the value of money or that bills and credit cards have to be paid from money you have. </p>
<p>Ok…swimcatsmom, this is a mess. A man with traits similar to a 7 year old needs a legal guardian. Needs a lawyer. His own lawyer. A lawyer can be an advocate for this young man. </p>
<p>Yea, it’s a mess. After talking with several people knowledgeable in this area, my friend has met with a guardianship lawyer and a lawyer will be appointed to represent her son’s rights. Just hoping her ex will not be as vicious as he has been in the past. He does not like to be crossed (does not want guardianship himself FWIW) & is a bully with lots of money that he wields like a big stick. </p>
<p>Dstark, our daughter has a specific Special Needs Trust. It is empty and will stay that way until it is funded at our deaths from our estate. One half estate to son, one half to DD’s trust. </p>
<p>I have no knowledge of another option to protect the disabled persons eligibilty for government benefits.
We used a law group very active in our area that pretty much are the “go to” guys for special needs law issues.
The attorney we worked with has a brother with special needs, which just is icing on the cake for us.
This trust is really important so we hope we got it right.</p>
<p>Swimcatsmom, i dont remember if there is a look back period for SSI eligibility. Assets over $2000 will be a problem. Medicaid is tied to SSI, at least in our state. Funding for day services for us are tied to Medicaid.
I dont know if its possible to move funds after young man is 18.
He needs some help.
If you would like you can PM me. Maybe our law group can refer to someone in the correct state?</p>
<p>The son’s lawyer will help immensely. Can’t control the dad’s attitude but the son has rights and things can work out for the son. </p>
<p>I’m glad that the mother in this situation is seeing a lawyer. Parents with special needs kids who have assets that thtey want to leave to their child should go to a lawyer. The situation is complicated and needs to be gotten right!</p>
<p>Not every disabled person should have a special needs trust. Our lawyer recommended against it for our son, because he doesn’t now receive government benefits and we don’t anticipate that he will in the future. Each situation is individual, and even though lawyers are expensive, in this case the expense is worth it.</p>
<p>So musicmom, does your daughter have a special needs trust set up at a financial institution? Or is it just a legal document? </p>
<p>This is bad to admit. I have to look for our trust. :)</p>
<p>I have what may be a silly question. I feel like I should be able to do this myself and can’t figure out how. My son’s psychiatrist has suggested that we apply for disability for him. I don’t know how to get started. We have applied before and got turned down but I can’t remember how I did it.</p>
<p>And, does age matter? S is 16. I am guessing that is considered a child/minor but maybe it is the cut off between adult and minor and I should really be applying as an adult for him?</p>
<p>Yes. Age matters. Once a person is 18, a person qualifies for ssi based on his or her own income and assets. </p>
<p>Your son should not have more assets than $2,000 when he turns 18. So you don’t want bank accounts in his name. </p>
<p>I don’t know what is available for people younger than 18.</p>
<p>You could contact an attorney who specializes in disability and see if he or she would talk to you for a few minutes. I got disability for my son, but he was 22. It’s a blessing to have a little extra income to pay for college and equine therapy! He also got on our state insurance, so all of his medical expenses are covered. If he is ever hospitalized again, we don’t have to worry about the cost.</p>
<p>I don’t know if it’s still the case, but until 5 or so years ago, the great majority of SSI cases were denied at first appication, with half approved on appeal.</p>
<p>Dstark, i missed your question upstream on post #232.</p>
<p>Our DD’s special needs trust is just a hunk of papers right now. No actual account associated with it at a financial institution yet as there’s no money in it. We just use the trust at this point to assign beneficiaries on our life insurance, 403b, IRAs, etc. So money will not ever go to DD, but to her trust. </p>
<p>DH just filed for early SS retirement. So, ive learned that most of DD’s SSI is is converted into what they call a “childs benefit”. Even though shes an adult, it is termed that due to her disability. So, she receives mostly SS with a bit of SSI to equal same monthly amount as previous.
Just when i THOUGHT i knew what was going on…</p>
<p>Wow musicmom, it just gets more and more confusing. </p>
<p>Ok…my daughter’s special needs trust set up is similar to yours.</p>
<p>Good to hear, dstark.
Maybe we’re on the right track! :)</p>