A special needs trust can provide important protections for someone who is disabled and who needs to qualify for Medicaid benefits. Special needs trusts can be used to protect assets owned or acquired by someone with disabilities. However, there are specific rules that must be followed for trust creation. Nirenstein, Horowitz & Associates can provide [ ] The post What are the Differences in First Party vs. Third Party Special Needs Trusts? appeared first on Nirenstein, Horowitz & Associates P.C..
There is a veritable alphabet soup used in the field of estate planning when it comes to acronyms. Some of these acronyms look very similar, and they may be used to represent programs and legal devices that accomplish similar aims, so there can be a lot of confusion. With this in mind, let’s look at the distinctions between SSDI and SSI. SSDI When you are working and paying taxes, one of the taxes that you pay is the FICA payroll tax. Some people scratch their heads when they see a significant chunk of their income going toward this tax. It can be frustrating to see that money go out the window. However, you can take heart, because it is going to benefit you in the long run if you are fortunate enough to reach the typical age of retirement. When you pay FICA taxes you are earning retirement credits, and you can accumulate up to four per year. When you have at least 40 retirement credits, you will qualify for Medicare coverage when you reach the age of 65. Medicare is a health insura
The Medicaid program is only available to people who can demonstrate a significant level of financial need. As such, there is indeed an asset limit. For a single individual, this limit is $2000. The $2000 limit is certainly attention-getting, but fortunately, some things that you own are not countable. The biggest asset that is not counted is your home, but in Connecticut, there is an equity limit that stands at $828,000 during the current calendar year. Topics covered in this report include: Medicaid Eligibility Click here to read the whole article or download the PDF.
People who devote time to military service make significant sacrifices, but they also obtain certain rewards. There are educational opportunities in the military, and you can obtain an education while you simultaneously build your resume as you serve your country. There are also benefits that can help you after you leave the service. People who serve for at least 20 years can qualify for a retirement pension, and if you stay longer than this, your retirement pension will be greater. In addition to the retirement pension, there is another pension that is called the Veterans Aid and Attendance special pension. The name of this pension is often shortened to Veterans A & A. While the length of service requirement for the retirement pension is 20 years at minimum, things are different with Veterans A & A . To meet the requirement with regard to length of service, you must have served for at least one day during a time of war. Your total length of service must be at least 90 days. The Veter
If it is done correctly, estate planning will involve careful consideration of the life situation of each inheritor. You should take a personalized approach and make sure that you are providing for each person that you love in the ideal manner. This is especially important if you have someone with a disability on your inheritance list. People with disabilities are clearly going to require health insurance. Most people get health insurance through their jobs, but a significant percentage of people with disabilities cannot work. For these people, Medicaid is a lifesaver. This is a government health insurance program that is available to people who can prove that they have a significant level of financial need. Once you obtain eligibility for Medicaid, your status is not necessarily permanent. If someone who is enrolled in the Medicaid program was to come into some money via an inheritance, eligibility could be forfeited. To address this type of situation, you could create a special need
People with special needs are often going to be unable to earn income on their own. There are a couple of different government programs that provide income for people who are in this position. One of them is Social Security Disability Insurance. When you work and you pay those pesky FICA or self-employment taxes, you are earning credits that will ultimately lead to eligibility for Social Security benefits. This program is for the most part in place to provide income for senior citizens, but it also protects you if you become unable to work due to a disability. If you have sufficient credits, you may be able to qualify for Social Security Disability Insurance benefits if a disability prevents you from earning much income on your own. Since this program is not specifically designed to provide for people with financial limitations, you could potentially qualify, even if you are in possession of resources. Supplemental Security Income The other government benefit program that provides inc
The process of estate planning involves careful decision-making. You should act in an intelligent and informed manner so that you do not make mistakes that cause unintended negative consequences. With this in mind, we will look at special needs trusts in this post. People With Disabilities There is no one-size-fits-all estate plan, because every family is different, and every person is unique. When you have someone with a disability in the family, you should certainly act in a measured fashion when you are putting your estate plan together. Individuals who have special needs are typically enrolled in the Medicaid program. Medicaid is a health insurance program that is jointly administered by the federal government along with each respective state government. The Medicaid program is designed for people who have significant financial need. As such, if you want to qualify, you must be able to meet the income and asset requirements. For an individual, the asset limit in most states is jus