Getting the news that you have inherited money or property from a family member is usually a good thing. For some people, it may be more of a concern. If you receive income-based government benefits, you may be concerned that your benefits will be in jeopardy if you receive a significant inheritance. For instance, if you receive Medi-Cal or Supplemental Security Income (SSI), you assets must not exceed a certain amount in order for you to remain eligible. If that's the case, you need to … [Read more...] about Protecting Your Inheritance with Inheritance Planning
Special Needs Planning
Isn’t a Trust Just a Glorified Will?
People sometimes assume that a trust is a somewhat glorified legal device that accomplishes the same thing that a will would accomplish. In fact, there are different types of trusts. Trusts can satisfy objectives that a will would not satisfy. Let's look at some of these scenarios. Estate Tax Exposure The federal estate tax is a legacy threat to high net worth families. This tax carries a 40 percent top rate, so we are talking about a very significant level of taxation. The good news is … [Read more...] about Isn’t a Trust Just a Glorified Will?
THE ABLE ACT: New Financial Planning Tool for the Disabled.
In 2014, Congress passed a new law that will change the lives of millions of people living with disabilities. Achieving a Better Life Experience, otherwise known as the ABLE Act will allow those living with disabilities to establish tax-exempt savings accounts that will not be counted against them when qualifying for government assistance, such as Medi-Cal and SSI. In the past, disabled persons were limited to no more than $2,000 in assets in order to qualify for these assistance programs, … [Read more...] about THE ABLE ACT: New Financial Planning Tool for the Disabled.
Use the Right Trust for the Right Job
Estate planning is often misunderstood. People who do not obtain professional guidance can assume that it is an either/or proposition. They are under the impression that a last will is the right choice for people who are not multimillionaires. The idea is that a trust is the other option, but it would only be useful for very wealthy people. In fact, this is a very shortsighted point of view. There are numerous different types of trusts. It is true that there are trusts that are used by high … [Read more...] about Use the Right Trust for the Right Job
Don’t Disinherit a Child With Special Needs
There are various different circumstances that can exist within a family. For example, there may be a child that you love who has special needs. The desire to provide for the child within your estate plan may be there, but you may be concerned about eligibility for Medi-Cal coverage. Before we proceed, let's provide some background information about Medi-Cal for those who may not know the facts. The Medicaid program is in place to provide a health care insurance safety net for people of all … [Read more...] about Don’t Disinherit a Child With Special Needs
Is There a One-Size-Fits-All Estate Plan?
Instant gratification has become the expectation in many cases during our current era, and this is largely due to the emergence of the Internet. Without question, the fact that you can obtain information about anything with the click of a mouse is a very good thing, but there are some pitfalls to avoid. From a commercial perspective, there are many different offers out there. The idea is that you can sidestep the need for professional assistance if you use simple tools that are offered online. … [Read more...] about Is There a One-Size-Fits-All Estate Plan?
Can I Protect My Injury Settlement With a Special Needs Trust?
In many cases, people with disabilities are unable to earn much income. As a result, they qualify for need-based government benefit programs. Medi-Cal is a source of health insurance for people with financial need, and Supplemental Security Income can provide a basic level of financial support if you can qualify. An improvement in financial status could result in a loss of need-based government benefit eligibility. As a response, assets can be protected through the creation of a special needs … [Read more...] about Can I Protect My Injury Settlement With a Special Needs Trust?
When Would I Use a Special Needs Trust?
A special needs trust is a type of trust that can be used to set aside resources for the benefit of a person with a disability without disrupting need-based government benefit eligibility. In this blog, we will look at some scenarios that would call for the creation of a special needs trust. Direct Gifts and Inheritances Let's say that you have someone in your family who has a disability who is enrolled in the Medicaid program. Medicaid is a health insurance program, and it is only … [Read more...] about When Would I Use a Special Needs Trust?
What Is the Difference Between SSI and SSDI?
You hear various different acronyms when you are looking into government programs, and it can sometimes be confusing, especially when they are similar. In an effort to clear things up, we will look at the difference between SSI and SSDI in this blog post. Social Security Disability Insurance (SSDI) People with disabilities are often incapable of earning much income, but they have needs like the rest of us. The government accounts for this through the implementation of programs that provide … [Read more...] about What Is the Difference Between SSI and SSDI?
Are There Different Types of Special Needs Trusts?
Everyone needs health insurance, but it is more essential for some people than it is for others. Clearly, individuals with special needs are going to require care and treatment throughout their lives, and health insurance is an absolute must for these individuals. Most people get health insurance coverage through their jobs. Since people with disabilities are unable to work in many instances, this presents an obstacle. For these folks, Medicaid is often the solution. It is called Medi-Cal … [Read more...] about Are There Different Types of Special Needs Trusts?
