1/26/2018. Winter Drive-In Conference: FEBRUARY 2, 2018 Hyatt Regency Lisle Hotel 1400 Corporetum Drive Lisle, Illinois 60532

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1 Winter Drive-In Conference: FEBRUARY 2, 2018 Hyatt Regency Lisle Hotel 1400 Corporetum Drive Lisle, Illinois :00 P.M.-6:00 P.M. Arbor C/D Brian Rubin, Attorney at Law Special Needs Legal and Future Planning The who, what, where, when, why, and how of Government Benefits, including SSI, SSDI, Medicaid, Medicare; Special Needs Estate and Future Planning including the who, what, where, when, why and how of and appropriate uses of Special Needs Trusts; Gifting by grandparents and extended family members; The impact of divorce and child support on government benefits; guardianships and Alternatives; Planning for when school years are over, when the bus stops coming; and navigating the maze of Adult Services; ABLE Accounts; guidance, education and information for the Future Team. 1

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3 3/13/77 Successful Happily Married Grandchildren Health 3

4 Rubin Law, A Professional Corporation @rubinlaw.com 866.to.rubin 4

5 S.I.B.S. Supporting Illinois Brothers & Sisters Illinois Chapter of the national Sibling Leadership Network S.I.B.S. Supporting Illinois Brothers & Sisters Illinois Chapter of the national Sibling Leadership Network or What YOU,, do Government Benefits 5

6 How much? WHERE FROM? Working? Parent(s)? Siblings? WHERE FROM? The GREAT STATE OF 6

7 REQUIRES SPECIAL Where from? NEEDS TRUSTS BEWARE Disabled? A two part test: Listing level impairment 1/3 less Diagnosis SSI/SSDI if: 1 Current Medical Information st of 3 3 rd - of ACA/Obama 3 - HBWD Medicaid Care Medicaid Don t charge rent (Health Benefits 1. Feds match 100% BEWARE: for Workers with Disabilities) - the current Illinois default Taxable Functional Income, If living limitations & may lose 1/3 Why exemption? reduction can t work? 1. Feds match CO-PAYS 2 nd 50% like traditional Medicaid If 2. turned No asset down test of (non-residential) 3 - for Traditional Medicaid Medicaid application or Documentation from to Professionals 2. Must be employed and FICA being withheld $ Income Feds match under 50% month residential Don t charge Earned IEPs, fair School share Records Concentration, 2018 Income: then or 3. lose Non-exempt Medicaid assets on under redetermination, $25,000 the - Non-student $2,000 But: of Generic non-exempt $2assets after $85 Assets State 4. Qualified doesn t Plans automatically (IRAs/401ks) fully then exempt try one of NOT Taxable Income Pace, = still month, Persistence may $750 lose 3. Brand Rx Income More - Co Name (Parents under RESIDENTIAL Pays than $1,030.00, $3.90 income counts Programs medical Deductibles (4/1/13) or a?) spend down exemption Appropriate only lose & won t keep Social Functioning the 5. Income other under types. Under $3,518 month cents work Income $2,000 Activities of Daily Living & $1,180 if over the dollar SSI 6. M.D. Previously $3.90 Not on on SSI or visit SSDI (4/1/13) as disabled amount Asset month Test 7. Hospital Doesn t Not $3.90 work on for residential day Insurance (4/1/13) only community $750 Understand, reduced to Remember, $500 Apply for Information personal (new use for 2017) Interact with Others (new for 2017) Medicare Adapt or Manage Oneself (new for 2017) IF DATE Quarters OF ONSET own BEFORE record: 22 & PARENT: Inability Deceased to Use Two 2018 Limbs $1,320 TWO YEARS On SSDI CDB (DAC) Retires Before and 24 receiving 6 quarters SSA on parent s record IF JUST Income Test MEDICAID is a? Post school years Residential (CILA + ICFDD) Work/Day Programs Supported Employment (DDD/DRS) Regular Work (Sheltered Employment) Community Day Services (DT) 7

8 Dependent children NOT subject to limiting age provisions! Even if living residentially! Even if can t claim as dependent for IRS Income Tax purposes! since1969, amended 1997 & the attainment of the does not operate to terminate the hospital and medical coverage of a person who, because of a handicapped condition that occurred before attainment of the limiting age, is. 8

9 PRIORITIZATION OF URGENCY OF NEED FOR SERVICES for infants, children & adults with. for: All Medicaid Programs Children s Waiver Adult Waiver CILA - Group Homes HBSS In-Home CILA Supported Employment Services Community Day Services (DT) Regular Work (Workshop) 9

10 The ISC ( ervice oordination) Agents (used to be Pre-Admission Screening Agents, name change, but same organizations) are point of to access state & federally funded services for persons with developmental disabilities, over the age of three, & their families. 10

11 Prioritization of Urgency of Need for Services (PUNS) 1. You must first contact your ISC/PAS Agency for an interview. 2. Based on the information you provide during this interview, the ISC/PAS Agency will: a) complete a PUNS form b) will place your need for services into one of 4 categories: 1. Crisis You need services within 72 hours 2. Emergency Need - You need immediate services 3. Critical Need - You will need services within 1 year 4. Planning Need - You will need services in 1 to 5 years Note: A completed PUNS form: 1. does not mean that you are eligible for services 2. does not guarantee that services will be provided FYI The State is discussing changing to just 2 categories: 1. Crisis 2. Planning ensure that the Illinois Department of Human Services knows about your need for services. 2/01/08 The Illinois Maze! If under 18 regardless of parents assets & income 11

12 Based upon waiver approved by Feds: NOT part of LIGAS Class action lawsuit! 12

13 STATE OF ILLLINOIS DHS DDD DEFINITION OF DD FOR WAIVER 13

14 Personal Assistant Homemaker Services Home Health Services Electronic Home Response Home Delivered Meals Adult Day Care Assistive Equipment Environmental Modifications Respite Services Brain Injury (Behavior; Habilitation; Pre-Vocational; Supported Employment) Community Reintegration 14

15 2 Versions... Reserve Supplemental Fund Over & Above Government Benefits No $ limit Federal State 15

16 INHERITANCE THEN UPON BENEFICIARY PASSING GIFT INSURANCE IRA 401K FAMILY CHARITY GUARDIANS Beneficiary s own assets Including child support (divorce) 16

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20 So what s all the for? Instruction Manual Rules of the Road Who can use it? Parents Siblings Grandparents Anyone... Remember - 3 rd Party Parents & Family as Trustees 20

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22 WHAT ABOUT GIFTS? 22

23 BENEFICIARY consider spending it down on allowed expenditures, such as: COMPUTER, TV, DVD PLAYER VACATION PRE-PAID FUNERAL PAY OFF DEBTS EVEN TO PARENTS CLOTHES BUT MUST BE FOR HIS/HER SOLE BENEFIT 23

24 When to consider ABLE? 1. Excess SSI/SSDI/Earnings to avoid $2,000 issue? But if SSD not SSI & working, ABLE consider Account HBWD an 1st! option? 2. Now Short available term savings Illinois 3. Maximum For beneficiary $15,000 to a be year in control from ALL of some sources! spending money 4. Only Avoid ONE 1/3 account reduction per for beneficiary! housing if on SSI 5. Beneficiary Small inheritances is OWNER, not if correctly (or when) left 18, to if 3no rd party Guardian! trust 6. Small law suit settlements Balance can not be more than $100,000 for SSI, & never more than 7. NEW Convert traditional 529 Account up to $15,000 limit maximum for 529s in host State (Illinois = $400,000). 8. NEW Additional contribution of the lesser of earned income But, limited on how can spend ( sort of )! Penalties & tax! from employment for the year & $11,770, if no contribution by or for to Pay an back employer on death, retirement so not really saving not plan. for large However, 3 rd party beware contributions. the earned Tax free? income SO WHAT! will still be counted for purposes of eligibility. 9. What NEW if 2018 Beneficiary Claim has Saver s Guardian creditor for is contributions a minor? made by the beneficiary OBRA 93 Trust (d)(4)(a) or (C) Trust PAY BACK Trust (like an ABLE account because 24

25 1 st Party Special Needs Trust Medical Malpractice Personal Injury Inheritances & Gifts NOT to 3 rd party SNT Special Needs Trust His/Her own assets, such as savings bonds,& Then upon passing any left only then: FAMILY CHARITY GUARDIANS Only if NOT 65 Only by Parents, grandparents, Courts, guardians & self NOT others SSA Position... Courts often require... Pay Back to day

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27 WHICH FIRST? COMMON ATTORNEY MISTAKES! 27

28 COMMON ATTORNEY MISTAKES! COMMON ATTORNEY MISTAKES! COMMON ATTORNEY MISTAKES! 28

29 COMMON ATTORNEY MISTAKES! COMMON ATTORNEY MISTAKES! COMMON ATTORNEY MISTAKES! 29

30 COMMON ATTORNEY MISTAKES! COMMON ATTORNEY MISTAKES! COMMON ATTORNEY MISTAKES! 30

31 COMMON ATTORNEY MISTAKES! COMMON ATTORNEY MISTAKES! COMMON ATTORNEY MISTAKES! 31

32 COMMON ATTORNEY MISTAKES! COMMON ATTORNEY MISTAKES! COMMON ATTORNEY MISTAKES! 32

33 COMMON ATTORNEY MISTAKES! COMMON ATTORNEY MISTAKES! COMMON ATTORNEY MISTAKES! 33

34 COMMON ATTORNEY MISTAKES! COMMON ATTORNEY MISTAKES! 34

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37 School won t talk to parents without child s permission Doctors won t talk to parents without child s permission Health Insurance Company won t talk to parents without the child s permission. Parents will have no control of UTMA accounts after 18 (21). Parents cannot apply for SSI and/or Medicaid for/on behalf of the child. 37

38 Establish and transfer of money/property to a 1 st Party OBRA Pay Back Trust or ABLE account. Represent: 1. IRS 2. Residential 3. Employment or DT 4. SSI/SSDI/Medicaid/Medicare 5. HIPAA 38

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40 The child is on the computer buying things with mom s credit card The child announces that he/she is getting married The child announces that he/she is moving in with a friend The child refuses to have parents at IEP/504 meeting The child is going for driver s license without parents approval or agreement. 40

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42 5. To any person, as a driver, who has previously been to be afflicted with or suffering from any mental or physical disability or disease and who has not at the time of application been restored to competency by the methods provided by law; 8. To any person when the Secretary of State has good cause to believe that the person by reason of physical or mental disability would not be able to safely operate a motor vehicle upon the highways, the person shall furnish to the Secretary of State a verified written statement, acceptable to the Secretary of State, from a competent medical specialist to the effect that the operation of a motor vehicle by the person would not be inimical to the public safety; 42

43 EXCEPT, certain counties have received extensions: Cook 6 months to 7/1/18 DeKalb 6 months to 7/1/18 DuPage full 18 months to 7/1/19 Madison - 6 months to 7/1/18 McHenry - 6 months to 7/1/18 Winnebago - 6 months to 7/1/18 NEW ILLINOIS LAW REQUIRED TRAINING FOR GUARDIANS even for parents Public Act effective September 8, 2018 (except, for some reason, not applicable to Cook County) The new law requires guardians of the person appointed in counties of less than three million (all counties except Cook) to complete a training program within one year from the date of appointment. Public guardians, licensed attorneys, and corporate fiduciaries are exempted from this requirement. A court may exempt, for good cause shown, any other person so appointed. 43

44 NEW ILLINOIS LAW REQUIRED TRAINING FOR GUARDIANS even for parents New Section 33.5 of the Guardianship and Advocacy Act provides: The State Guardian shall provide a training program that outlines the duties and responsibilities of guardians appointed The training program shall be offered to courts at no cost, and shall outline the responsibilities of a guardian and the rights of a person with a disability in a guardianship proceeding NEW ILLINOIS LAW REQUIRED TRAINING FOR GUARDIANS even for parents 755 ILCS 5/11a of the Probate Act (Adult Guardianship) was amended by adding: The order of appointment of a guardian of the person shall include the requirement that the guardian of the person complete the training program and file with the court a certificate of completion one year from the date of issuance of the letters of guardianship, except that: (1) the chief judge of any circuit may order implementation of another training program (2) employees of the Office of the State Guardian, public guardians, attorneys currently authorized to practice law, corporate fiduciaries, and persons certified by the Center for Guardianship Certification are exempt from this training requirement; (3) the court may, for good cause shown, exempt from this requirement an individual not otherwise listed in item (2). For the purposes of this subsection (e), good cause may be proven by affidavit. 44

45 FAMILY OR ON OWN IN HOME SERVICES STATE OP (SODC) PRIVATE ICFDD CILA OTHER: EARNINGS + SSI/SSDI + HBSS + FAMILY/SNT CIF/MICROBOARD STAY TUNED 24/7/365, INTERMITTENT, IN HOME/FAMILY 45

46 LIGAS V. HAMOS CONSENT DECREE - JUNE 15, 2011 SERVICES FOR WAITING CLASS MEMBERS IN SITUATION OF CRISIS Definition of Crisis (same since 2/2008) Caregiver is deceased Caregiver is unable to address support needs, jeopardizing health and safety of individual Individual is being physically or mentally abused Individual is homeless Behaviors put the individual and/or family member(s) at risk Those in Crisis will receive services expeditiously (72 hours?) WAITING LIST CLASS MEMBERS NOT IN CRISIS 1. Class member residing at home not in crisis will be placed on waiting list. 2. 1,000 class members from waiting list will receive community services by 6/15/ additional by 6/15/ additional by 6/15/ additional by 6/15/ additional by 46

47 You need to write it ALL down! Guidance & Instructions For Future Guardians, Trustees, & Care Providers. MITCH RUBIN WRITE IT DOWN! Family information & history (relationships), including family medical history WRITE IT DOWN! History of: diagnoses hospitalizations medications doctors other professionals PAST & PRESENT! 47

48 WRITE IT DOWN! WRITE IT DOWN! WRITE IT DOWN! 48

49 WRITE IT DOWN! WRITE IT DOWN! WRITE IT DOWN! Government Benefit Information 49

50 WRITE IT DOWN! Emergency Information, including DPAs, Short Term & Stand By Guardian Declarations WRITE IT DOWN! Wills, Trusts, Life Insurance, Powers of Attorney, SNT, funeral desires & related info WRITE IT DOWN! 50

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