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19 Cards in this Set
- Front
- Back
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What are the three factors that should be present for SNT to be considered?
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1. Person is disabled;
2. person is receiving (or eligible to receive) public benefits; and 3. person receiving assets, assets being left to them, or has existing assets |
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In the special needs context, how is "disability" defined?
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Inability to engage in substantial gainful activity due to physical impairment lasting for more than one year.
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What is the maximum income for medical and SSI?
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$1,000 per month
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what are the maximum level of assets allowed for SSI and Medical recipients?
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$2000
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What is SSI payment
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$674/month
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who gets SSI payments
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disabled, blind, over 65
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If you are eligible for SSI, does that mean automatic eligibility for Medi-cal?
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yes
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What is the difference between a 1st party SNT and a 3rd party SNT?
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depends on who has the assets. If assets are held (or about to be held -- e.g. lawsuit recovery) by disabled person, 1st party. If gift or inheritance -- 3rd party
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what are some limitations on 1st party special needs trusts?
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can't use annual exclusion
includable in estate (for tax purposes) age limit of 64 years old subject to payback and medicare/medical claims |
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What are most important features of 3rd party SNTs?
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1. beneficiary can't have authority to revoke trust;
2. beneficiary can't direct use of trust assets for support and maintenance under terms of trust. |
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What is a pooled SNT?
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preexisting trust administered by non profit that receives/manages assets for beneficiary.
Useful when no suitable trustee for 3rd party SNT. |
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What are the variety of an options for planning for first party special needs (disabled individual holding/about to receive assets)?
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1. give assets away
2. spend assets down 3. modify trust to 3rd party SNT 4. 1st party SNT 5. pooled SNT |
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what is the effect of giving away assets in terms of eligiblility for SSI and medical?
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ineligible for up to 36 months
transferred amount divided by SSI = ineligibility period. |
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what are some exempt assets for puposes of SSI or medical?
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principal residence
automobile household items, personal effects musical intruments burial insurance, trusts, funds, plots term insurance; whole life with cash value under $1500 |
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Can prepayment of services be done to reduce assets and eligibilty for SSI?
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yes, e.g. food, shelter, services
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Is a disclaimer counted as a gift given for SSI purposes?
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yes
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How can a disqualifying 3rd party sNT become qualifying?
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petition the court to modify/reform the trust
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What is another name for a 1st party SNT?
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Seed trust
(d)(4)(A) trust |
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Limitations on a 1st party SNT?
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Settlor must have capacity
must be under 65 (alternative would be pooled snt) |
