Ten Topics to Consider for Your Estate Planning Conference

Transcription

1 Ten Topics to Consider for Your Estate Planning Conference Laura Akins Attorney, The Witcher Law Firm E. Ponce de Leon Ave., Ste. 300 Decatur, GA (404)

2 1. Do you need a Financial Power of Attorney? 2. Do you need an Advance Directive For Healthcare? 3. Virtual Afterlife 4. Titling of Your Assets

3 5. Beneficiary Designations 6. Limited Liability Corporations (LLCs) and other Corporate Entities 7. Federal Estate Tax

4 8. Who to appoint as Executor? As Guardian? As Trustee? 9. What does it mean to probate a will? 10. The distinction between a will and a trust

5 Special Needs Trusts Sarah R. Watchko, CELA Hill & Watchko, LLC 1815 Lockeway Drive Suite 106 Alpharetta, GA (770) telephone

6 Why use a Special Needs Trust? Provide for individuals with disabilities Preserve eligibility for public benefits Create eligibility for public benefits Preserve the option of becoming eligible for public benefits in the future Provide quality of life money Prolong the use of available funds

7 Public Benefits 101

8 Disability Inability to engage in substantial gainful activity ( SGA ) ($1,170/mo for 2017) (For a child: marked and severe functional limitations) By reason of any medically determinable physical or mental impairment Which can be expected to result in death or to last for a continuous period of not less than 12 months

9 Two Genres of Public Benefits Insurance Based Benefits SSDI and Medicare Welfare Based Benefits SSI and Medicaid

10 Social Security Disability Insurance (SSDI) Eligibility is based on an individual s insured status quarters of coverage Maximum of 4 quarters/year can be earned Takes a minimum amount earned to obtain a quarter The required number of quarters of coverage is tied to the age of the worker at the time the disability occurs Retirement: 4 quarters/year for 10 years Disability: more complicated

11 SSDI (continued) A child who became disabled prior to turning 22 years old can draw SSDI on a parent s work record at such time as the parent dies, retires or becomes disabled After receiving SSDI for 2 years, an individual is eligible for Medicare benefits

12 Supplemental Security Income (SSI) Financial Eligibility Individual receives less than $735 per month in countable income Individual has less than $2,000 in countable resources

13 Medicaid In Georgia, an SSI recipient is automatically eligible to receive Medicaid benefits Medicaid is not limited only to SSI recipients Georgia has multiple Medicaid programs, each with differing eligibility requirements and varying levels of healthcare coverage

14 Special Needs Trusts The Basics

15 Special Needs Trusts (SNTs) Trustee is directed to use the funds in the trust to supplement (not support) the beneficiary Exempt resource for SSI and Medicaid eligibility Drafting and administration comply with SSI and Medicaid requirements

16 Estate Planning and SNTs (Third Party Inter Vivos SNT) Created by third party (someone other than beneficiary) Funded with third party assets No age restriction for beneficiary No pay-back required Trust can accept gifts &/or inheritances from multiple individuals

17 Third Party Testamentary SNT Established under a will Funded when the will is probated, with third party assets No age restriction for beneficiary No pay-back required Necessary planning tool for parents of children of any age who have disabilities Good option for planning for spouse with disability

18 Choosing a Trustee Family Member Trustee Professional Trustee Co-Trustees Pooled Special Needs Trust

19 First Party (d4a/self-settled) SNTs Should not be used in estate planning to accept inheritances Funded with first party (beneficiary) assets For the sole benefit of the beneficiary Must include pay-back at the beneficiary s death Beneficiary < 65 years of age Established by parent, grandparent, court or legal guardian, or by the beneficiary (under the Special Needs Trust Fairness and Medicaid Improvement Act as of 12/2016)