#SpecialNeedsTrust

Eric Kearney

Nov 14, 2019
3 min

Year-End Gifts to Family Members With Special Needs

Here are some things to consider when making holiday gifts to family members who are on public benefits.

Eric Kearney

Jun 4, 2019
2 min

Gift Cards: A New Way to Contribute to ABLE Accounts

A Gift of Independence gift card is a new way to honor, celebrate, reward or support a member of your family, a friend, a co-worker or a nei

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Eric Kearney

May 9, 2019
2 min

Invite Others to Contribute to the SNT

A standalone third party trust can be a great opportunity for other family members to make a lifetime (or testamentary) contribution to a di

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Eric Kearney

Apr 10, 2019
3 min

IRA Distributions to Special Needs Trusts - Minimizing Income Taxes

For many parents, the majority of their savings is held in some kind of a retirement account, often an Individual Retirement Account (IRA). At age 70 1/2, an IRA account holder faces the Required Beginning Date, when he or she must take mandatory distributions from the IRA. These payments are determined by the government and are known as Required Minimum Distributions. If the parents have a child with special needs, it is often important for the parents' estate plan to direct

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Eric Kearney

Feb 16, 2019
2 min

What Can a Special Needs Trust Pay For?

A special needs trust is designed to provide a person with a disability the funds to enhance her quality of life while at the same time allowing her to remain eligible for needs-based public benefits. Government programs like Medicaid and Supplemental Security Income (SSI) provide essentials, such as medical care, food, clothing and shelter. Special needs trusts are intended to supplement, not replace, this kind of basic support. Such trusts pay for anything the trust docume

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Eric Kearney

Jan 3, 2019
2 min

Pooled Trusts: Should You Consider Taking a Dip?

Most special needs trusts (SNTs) are set up to benefit one individual. But it’s possible to contribute to a trust where the funds of many people with special needs are “pooled.” This kind of trust, called a pooled or (d)(4)(C) trust, may be a better option for some people than the conventional SNT, depending on the circumstances. In a pooled trust, individual beneficiaries create accounts within a larger trust, which is managed by a non-profit association. But as with an

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Eric Kearney

Jun 4, 2018
2 min

Social Security Provides Guidance on the Use of Prepaid Debit Cards by Special Needs Trust Beneficia

SSA recently issued new guidance regarding the use of prepaid debit cards like True Link with Special Needs Trusts. This marks the first tim

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Eric Kearney

May 3, 2018
3 min

Can I pay for travel expenses out of a Special Needs Trust? Can I pay for Companion Care?

A frequent question I get as a special needs planner is “Can I pay for travel expenses out of a Special Needs Trust? What about companion ca

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erickearney

May 1, 2018
3 min

Highlights From the New POMS

Special Needs Planners are excited about the new POMS that the Social Security Administration released regarding Special Needs Trusts. Learn

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Eric Kearney

May 1, 2018
1 min

New SSA POMS on Special Needs Trusts Issued

New guidance from Social Security Administration regarding Special Needs Trusts (SNTs) has issued. Take a look at the provisions.

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Eric Kearney

May 1, 2018
2 min

What Assets Are Not Counted When Applying for SSI?

Supplemental Security Income (SSI) is a federal program that helps people with disabilities and very low incomes pay for food, clothing and shelter. SSI is often confused with Social Security Disability Insurance (SSDI). One of the main differences between the two programs is that SSDI is available to people with disabilities no matter how much money they earn or have, while SSI places very strict limits on a recipient's income and assets. However, in most states, an SSI bene

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Eric Kearney

Nov 3, 2017
2 min

ABLE account aggregate annual contribution raised to $15,000 nationally

The IRS has confirmed an increase to Section 2503, the federal gift tax exclusion. Section 529A(a)(2) of the Stephen Beck Jr. Achieving a Be

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erickearney

Oct 8, 2017
2 min

Key Decisions in Setting Up a Special Needs Trust - Who will be the Trustee?

Simply defined, a trust is an agreement between two people -- a grantor who donates funds to the trust and a trustee who manages those funds according to the grantor's wishes, which are laid out in a trust document. The funds in the trust are typically used to assist a person or group, called the trust beneficiary. Although it may sound complicated, at heart a special needs trust is merely a trust established for the benefit of someone with special needs. Special needs trusts

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Eric Kearney

Sep 13, 2017
1 min

CMS Guidance on ABLE Accounts

At long last the Centers for Medicare & Medicaid Services (CMS) had provided guidance to states on how to treat “ABLE” accounts in Medicaid financial eligibility determinations. The Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (the ABLE Act), enacted in 2015, created a program under which people with disabilities can save money for their disability-related expenses in tax-advantaged accounts. Because disability can serve as a basis for Medicaid eligibilit

91 views0 comments

Eric Kearney

Aug 3, 2017
2 min

Is There a Difference Between "Supplemental" and "Special" Needs Trusts?

You may have heard the terms "special" needs trust and "supplemental" needs trust and wondered what the difference is. T

51 views0 comments

erickearney

Apr 1, 2017
3 min

How to Make Distributions to an SNT Beneficiary Without Disrupting Their SSI

When serving as the trustee of a special needs trust, it is crucial to be careful when making distributions for the benefit of the trust beneficiary. This is particularly true if the beneficiary receives Supplemental Security Income (SSI) because any distribution could potentially violate Social Security’s rules regarding unearned income for SSI recipients. If a distribution runs afoul of these rules, the Social Security Administration will treat the distribution as unearned

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erickearney

Apr 1, 2017
1 min

Why It Is Important to Have an Attorney Who Focuses on Special Needs Trusts

Many attorneys create trusts, and some even create special needs trusts, often using pre-written templates. So why, you may ask, do you really need an attorney whose practice focuses on special needs planning? It is important that special needs trusts not be unnecessarily inflexible and generic, which is what can happen with a “one size fits all” trust template. The eligibility rules for Medicaid are different from those for Supplemental Security Income which are different f

32 views0 comments

Eric Kearney

Dec 13, 2016
1 min

Special Needs Fairness Act Passes

The Special Needs Fairness Act has been signed into law as part of the 21st Century Cures Act. Competent disabled individuals can now establ

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erickearney

Dec 8, 2016
1 min

Progress on the SNT Fairness Act

The Senate approved H.R. 34, the 21st Century Cures Act, which includes the Special Needs Trust Fairness Act, by a vote of 94 to 5. The bill now heads to the President, who is expected to sign the bill which could happen as soon as today. Passage of the Special Needs Trust Fairness Act will have a direct impact on people with disabilities. No longer will individuals in need of a special needs trust, but without parents or grandparents, face undue legal difficulties. #SpecialN

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erickearney

Dec 1, 2016
1 min

House Passes Health Package with SNT Fairness Act

The House passed H.R. 34 – 21st Century Cures Act, a major health care package that included the Special Needs Trust (SNT) Fairness Act (Sec

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Eric M. Kearney, LLC