What is the most important document you can create to help ensure that your loved one has the best possible life after you die? Most people would think of a special needs trust or a comprehensive set of estate planning documents. While we would agree that these documents are essential, a care plan for your child’s future may be the most valuable thing you can leave behind. Completing a care guide, also referred to as a Letter of Intent, can be an emotionally challenging process, but the benefits far exceed the emotional cost. A well-drafted care guide provides a detailed roadmap for future caregivers to maintain the quality of life for your child after you are gone. The format and the contents are up to you. The key to a well-drafted document is that it contains the information needed by future caregivers. In short, all the stuff that parents know about their child that they would want others to know, needs to be included. Some families will create a document and print and distribute paper copies to the people who will play a role in their child’s future. More commonly, we see families sharing and updating their documents electronically. There are some new services that prompt parents to upload information and images regarding various topics that can then be shared using passwords given to the future caregivers. In short, there is no wrong way to develop your care guide as long as you do something. People and agencies that you intend to play a role in the future caregiving of your child should be made aware of your intentions. You can share your expectations with them and include their input in your next update of the document. It is essential that they know the document exists and how they will get access to it either during your lifetime or after you die. If you have any questions or would like additional assistance about creating the document, please contact us directly or visit us on Spotify, The Special Needs Voice (link), to hear our recent podcast on the importance of creating a Care Guide.
The holiday season is a time of warmth, connection, and celebration. But for families with a loved one with a disability, it can also bring unique challenges like sensory overload, disrupted routines, or transition difficulties. The key to a fun and successful celebration lies in thoughtful preparation, flexibility, and a dash of humor to keep spirits high. The below tips are drawn from our years of experiences with our own family members that will help you build a comforting environment ensuring that the holiday season is enjoyed by everyone involved. Plan Ahead- Discuss your loved one’s preferences and needs in advance with your family, especially if you are traveling to a different location. When you communicate your loved one’s needs in advance, it offers insight into their world, fostering empathy and understanding before the festivities even begin. By sharing their roadmap, you empower others to contribute to a holiday that celebrates your loved one exactly as they are. Incorporate Humor and Lighthearted Moments- Laughter is a powerful equalizer. Play some fun inclusive games and share funny holiday stories that include everyone. Laughter can assist with building bonds while diffusing any tension, reminding family and friends that imperfections are part of the fun. Create a Comforting Environment- Communicate openly with guests about boundaries to foster an inclusive environment where your loved one feels supported and welcome. To minimize disruptions, consider creating a visual schedule or social story outlining the day including breaks for quiet time or a sensory friendly space. Practice Self Care- As caregivers, we carry most of the heavy lifting while navigating the complexities of the disability community, advocating, and managing our loved one’s daily life. This is why practicing self-care throughout the holiday season is a non-negotiable, and the primary prevention against caregiver burnout. Block time out in your schedule for a morning walk, a cup of coffee or hot chocolate (with whipped cream for extra measure), an exercise class, or a night out with a friend. Whatever it is that will allow you to make time for genuine restoration is what we encourage you to focus on this holiday season. Preventing burnout is not about doing more, it is about protecting the caregiver so the care can continue. Embrace the Unexpected-No matter how meticulously you map out sensory breaks, visual schedules, and allow for quiet time, the holidays have a way of writing their own script. When a loved one with a disability is part of the equation, these unscripted detours can feel amplified, but they are profoundly normal. We encourage you to pivot your expectations with compassion instead of frustration. We hope everyone has a wonderful and safe holiday season!
Hi, I’m Mike Walther with Oak Wealth Advisors. Today I want to share some tips for
understanding the asset tests related to acquiring and keeping means-tested benefits. It’s
important to recognize that for many governmental benefit programs available to our loved ones
with disabilities, eligibility is tied to how many assets the individual owns. These tests apply to
programs such as Supplemental Security Income (SSI), which is a cash benefit; Medicaid, which
provides both health insurance and a variety of waiver-based supports; and the Supplemental
Nutrition Assistance Program (SNAP), formerly known as food stamps, which helps provide
food assistance.
Asset limits vary depending on both the specific benefit program and the state in which you live.
However, the baseline federal asset limit for SSI is $2,000 in every state. Medicaid limits differ
by state, but generally, in order to maintain eligibility for means-tested programs, the goal is to
ensure that the individual with a disability keeps their countable assets below $2,000 on an
ongoing basis.
So what counts as an asset? Unfortunately, almost everything. You’ll want to review any
accounts or resources that your loved one may own to ensure that they either do not hold these
assets or hold very small amounts. The combined value of all countable resources cannot exceed
$2,000 when applying for or maintaining means-tested benefits. Countable assets include
checking and savings accounts (whether joint or individual), retirement accounts such as IRAs,
401(k)s, and 403(b)s, investment accounts holding stocks, bonds, mutual funds, or even gold,
and any trust—revocable or irrevocable—from which the individual can demand distributions.
Custodial accounts like UTMA or UGMA accounts, which typically transfer to the individual at
age 18 or 21 depending on the state, also count. Life insurance policies with cash value and
certain annuities can count as well.
This list makes it clear that families need to look carefully to ensure their loved one doesn’t hold
these types of assets when applying for benefits, and once benefits are approved, that their
accounts do not exceed $2,000 by the end of any month.
There are, however, certain assets an individual can own without affecting eligibility. A car and a
home of any value are excluded from the asset test. Assets held within a Special Needs Trust,
also called a Supplemental Needs Trust, are also excluded—provided the individual cannot
demand distributions and all distributions are made at the trustee’s discretion. Additionally,
funds held in an ABLE account are excluded up to $100,000; once the account exceeds that
threshold, the amount above $100,000 begins counting toward the $2,000 limit.
Keep these guidelines in mind as you work to secure benefits for your loved one. If you have any
questions about benefit planning—whether related to means-tested benefits or other areas—
please reach out to your advisor at Oak Wealth Advisors. We also encourage you to listen to our
Special Needs Voice podcast for new ideas and insights within the disability planning
community, and follow us on social media. We look forward to hearing from you and supporting
you with all your planning needs.
Hi, I’m Mike Walter from Oak Wealth Advisors with some 2025 year-end updates regarding ABLE accounts, which have become wonderful planning tools for our clients with loved ones with disabilities.
First, there are a couple of things that the recent legislation extended through the end of 2025 and into future years. The first of which is that if an individual has a college 529 savings plan, they’re able to roll that balance directly into their ABLE account on a tax-free basis and continue to invest and use the monies within the ABLE account on a going-forward basis. The only limit to that is you can only put in the $19,000 a year. So if your 529 plan has more than that, you have to spread those transfers over multiple years.
Second, the ABLE to Work plan has been extended. That’s the plan that allows an individual who’s employed to add their earnings up to $15,060 to their ABLE account in addition to the $19,000 cap from all other sources. So it’s two wonderful additional benefits from new legislation that will be available on an ongoing basis.
Vessels were made permanent in 2025. In addition, new legislation was passed this year that extends the age of onset for accessing the ABLE account. Previously, you had to be aged 26 or younger with your disability diagnosis in order to enable account. Now, anytime up till age 46, you can be diagnosed with disability and use the ABLE account. It’s a wonderful additional benefit to our veterans and other folks who suffer disability injuries that occur after they were 26 years old. That becomes effective on January 1st, and that’s going to help millions of additional people use ABLE accounts for their future benefit.
And then finally, there’s a new Savers Credit. This is an opportunity for the individual to contribute to their ABLE account and then get a tax credit back of between 10 and 50 for a maximum credit value of $1,000. That credit can reduce their taxes but not generate a refund. So again, it’s going to reduce their tax liability, if any, for 2026, but it would not generate a credit if that was the only thing driving their taxes below zero. That’s been available for the 2026 tax year, so that’ll really benefit them when they’re filing their return for 2026 in 2027.
And those are the new elements that have been put through through recent legislation affecting ABLE accounts. If you have any questions about your ABLE planning or any other part of your special needs planning, please reach out to your team at Oakwood Advisors. Also, check us out on the socials. Listen to The Special Needs Voice podcast for some inspirational stories from the disability community. We truly look forward to helping you with all of your planning needs.
With that, we’ll share our disclosures. You can read that as quickly as you can. We appreciate listening to our updates and we look forward to helping you in the future. All the best.
As parents or caregivers of children with disabilities, we often invest significant time and effort in
managing their medical care. This includes scheduling appointments, communicating with healthcare
providers and insurance companies, and ensuring that their medical teams meet their needs effectively.
However, as your child transitions into adulthood, their healthcare will undergo significant changes.
Legally, your child will be responsible for managing all their medical care when they turn 18, unless
protections are placed upon them to either share the decision-making responsibilities, or for you to
make decisions for them.
Over time, children can learn to take charge of some or all their medical care themselves to prepare for
greater independence. Beginning this transition sooner, rather than later, can make the process
smoother and empower your loved one to advocate for themselves as much as possible.
Let’s talk about some actionable steps to help your child gain confidence and competence in managing
their health care. Knowing that every child is unique and has different skill sets, you will want to tailor
these to your child’s abilities and start small to build momentum:
Greeting the doctor: encourage your child to greet the doctor at the start of each visit- this simple act
will help them feel like an active participant with their own care, feel more comfortable with their
doctor, and be more comfortable discussing concerns down the line.
Teach your child to identify and describe what hurts or bothers them- practice this at home through
role playing, creating scripts, or making lists during the appointment.
Prompt them to share this information directly with the doctor- help your child come up with at least
one question to ask the doctor at each visit. This increases their ability to engage in conversations about
their health through building confidence and self-advocacy skills.
Learning about their medical issues- explain your child’s conditions in age-appropriate ways use simple
language visuals or resources to help them understand their diagnosis treatments and needs.
Pharmacy skills- take your child to the pharmacy and demonstrate how to order prescriptions in person
and use the preferred pharmacy apps. Communicate how and where to pick prescriptions up and talk to
the pharmacist. Overtime, encourage your child to become an active participant in their healthcare
journey.
By prioritizing self-advocacy skills, you will help ensure your loved one receives the best possible care as
an adult. This transition is not always easy, but with patience and proactive steps, you can help your child
thrive in their adult healthcare journey.
Mike Walther with your special needs tip about the Blue Envelope Program. The Blue Envelope Program is a relatively new opportunity for families who have loved ones with autism, mental health challenges, or another form of neurodivergence who may face additional challenges while driving. These challenges can become especially difficult if they have an interaction with a police officer—whether due to an emergency or a routine traffic stop. The idea behind the Blue Envelope Program is to de-escalate situations that may arise from behaviors or communication challenges between law enforcement and the individual. So, what is it? The blue envelope is literally a blue envelope that holds vital information a police officer would request during a traffic stop. It typically contains a driver’s license (or a copy), vehicle registration, and insurance information. While the driver may already have their license on them in a wallet or purse, the envelope keeps all the key information together so the officer can quickly run a background check at the time of the stop. The outside of the envelope also includes important details about the person, such as their disability and the types of behaviors the officer might encounter. This could include fidgeting, lack of eye contact, or verbal outbursts—information that can help the officer better understand the situation and avoid unnecessary escalation. In some areas, drivers can also receive a sticker or seat belt wrap to display near the shoulder area. This alerts approaching officers that the individual likely has a blue envelope with important information to share. All of these tools are designed to improve communication and reduce misunderstandings. Not every community has adopted the Blue Envelope Program yet. While many have, it is still relatively new, so you may need to check outside your immediate area to find one. Most national disability organizations have them available on their websites, and your state’s Department of Motor Vehicles may also provide them. The details can vary by state or municipality. The key is to keep the blue envelope in the car and explain its purpose to your loved one. It’s meant to make it easier if they have to interact with a police officer—alerting the officer to their challenges, condition, and communication style so the interaction goes more smoothly. If you have any questions about the Blue Envelope Program, feel free to reach out to us at Oak Wealth Advisors. We also encourage you to visit our website, oakwealth.com, for additional resources and to check out our podcast, The Special Needs Voice. We feature conversations with leading innovators in the disability community who share their stories and highlight new developments on the horizon. We wish you all the best in your planning and hope we can be a valuable resource for you in the future. If you have any questions, please reach out to us directly. Thanks so much.
Does it make sense to maintain a Special Needs Trust if an individual is no longer seeking or eligible for means tested benefits? We believe so, find out why…
Most families understand that having a special needs trust is the cornerstone of their planning for their loved one with a disability. In many cases, the special needs trust is established for the primary purpose of keeping the individual eligible for means tested benefits. Those benefits include supplemental security incomeknown as SSI and Medicaid which includes both health care and Medicaid waiver services. The question that arises from time to time is whether or not it’s essential to maintain a special needs trust if the individual is no longer seeking or eligible for these means tested benefits.
While every circumstance is unique and deserves careful analysis, in most cases it does make sense to maintain a special needs trust for the benefit of the individual even if there are no means tested benefits being received. There are several reasons for this.
First, one of the primary purposes of having a special needs trust is to protect the assets that are being set aside for the future benefit of the individual, who is the beneficiary. A trust provides a protective shell around those assets and can ensure that the individual is never taken advantage of by someone seeking to take their money. Second, the trust allows for a professional fiduciary to evaluate spending and ensure that the assets are invested appropriately for the individual’s future benefit. In many cases the individual is not capable of making the best financial decisions. The trustee has a legal responsibility to invest the assets prudently for the benefit of the individual. Third, If the individual is not receiving means tested benefits and has demonstrated decent financial decision-making skills, the trustee should have the flexibility to make distributions from a special needs trust with fewer restrictions than if the individual was receiving means tested benefits.
In summary, if the special needs trust is drafted by an attorney experienced with special needs planning, it can play a valuable role in the individual’s planning regardless of how much success and independence they achieve in the future.
If you have other questions about special needs trusts, or need to a referral to an attorney to draft one for your family or review your existing documents, please contact us.
Hi, I’m Mike Walther with today’s special needs financial planning tip, and this is an advanced tip really for use by a family where their loved one who wants to apply for benefits has way too many assets in their name prior to applying, or once they’re receiving means-tested benefits gets a large inheritance that was not properly directed into their third-party special needs trust.
So as we know, an individual can own the following items and not run afoul of having too many assets for means-tested benefit purposes. Those are: they can have a house of any value that they live in, they can have one car, they can have personal effects, and they can have $2,000 of other financial assets.
And that last piece is the one that typically gets people thrown out of the means-tested benefit programs because they have too many financial resources.
So let’s say we’re looking to apply for benefits and we know we have to get our assets down below $2,000, but maybe there’s $100,000 in various savings accounts that were accumulated over time. Person’s very fortunate, had some generous donors over time and they’re sending a lot of money.
Well, there are some basic planning tips we’ll use to get that number down below $2,000, but in some cases there might be too much money. So families say, well, why don’t we just give it to a parent or other relative and get it out of their name? What if we just spent it down on other people in the family or others in the community or charities to get us down to that $2,000 threshold?
Well, unfortunately these two strategies don’t work and in fact would cause the individual to have what’s called a look-back period of multiple years before they’d be eligible to get benefits. So that really would delay the timing of getting goods and services from the government. We don’t want to do that.
So the basic planning techniques would be to use an ABLE account, into which we can fund up to $19,000 a year. And that’s again from any person. So the individual, him or herself, can put up $19,000 of cash into that. Or you could use it to buy needed technology or other things they want.
That’s the basic spend-down methodology where you use it to buy things for that person’s benefit. As long as it’s for their sole benefit, that works and that’s not a problem.
Or you could set up what’s called the first-party special needs trust, which is a special needs trust funded with the person’s own assets. But when you use the trust, you now are going to have a tax obligation every year. You’re going to have to file a tax return, so it adds additional complexity and financial cost to the family in having an additional trust that’s got to be managed over time.
Is there another solution? Is there a solution that might allow that individual to get the money up to the parents who would then use it to spend for their loved one’s benefit and not run afoul of all these rules?
Well, the answer is yes, but it’s not one that’s typically discussed and not even well known within the financial planning circles. And that is to utilize a long-term contract for the individual’s benefit. It can be really one of two things typically, one of which is a long-term housing contract where you basically sign a long-term lease—5–10 years, whatever it might be. Or a long-term contract for services where, let’s say, a mother or a father is going to provide care for that individual at a reasonable rate for what it’s charged in that community.
In doing so, you can get hundreds of thousands of dollars out of their name by doing a prepaid contract. Let’s say that the rent is going to be $1,000 a month for 10 years. OK, so that’s going to be $12,000 a year, $120,000 a decade. That allows you to move $120,000 out of that individual’s name into the parent’s hands and immediately get access to government resources—or continue receiving resources if the $120,000 was to land in their lap while they’re already getting those program services provided.
So that’s the tip for today. Keep that in mind. If the individual ever ends up with a large sum of money and you’re trying to figure out how to most efficiently get it out of their name, using a long-term contract can be a wonderful solution.
We’d encourage you to work with your local attorney to set that up correctly. But that’s a wonderful, quick way to stay on benefits.
If you have any other questions about your planning, feel free to reach out to our team at Oak Wealth Advisors, check out our Special Needs Voice podcast, and look at us on the socials. We hope you have a great rest of your day.
People often ask us when they should begin planning for employment and housing for their loved one with special needs. The short answer is NOW.
You should expect that the transition to adulthood will be much more difficult for an individual with special needs than for someone without extra challenges.
Because the transition is more difficult, the planning needs to begin sooner than it would for a child without Special Needs.
If transition services are available through your child’s school district, often the most valuable topics to address are vocational skill development and independent living skills.
Families have to weigh the benefits of employment with the risk that the earnings may reduce or eliminate the benefits received from the government.
Another concern is that housing options are not as plentiful as most families would like them to be.
Finding agencies and firms that provide housing supports, job coaching, and employment services should be priorities for families as their children approach aging out of their school provided supports.
The earlier you start the planning for employment and housing, the more likely you’ll be to achieve positive results. Call us or visit our website today for more information.
There are a number of actions that every family with a child with Special Needs should take as soon as a diagnosis is received, and every time your family moves.
First, letting your local police department, fire department, and paramedics know the details of the disability that your loved one has may mean the difference between life and death.
Public safety officers can unintentionally diagnose a situation incorrectly if they’re not aware of an individual’s disability.
Second, practicing what to do when an alarm is sounded in the house is an important exercise that families should repeat on a regular basis.
In some cases, extra accommodations need to be made in a house to ensure that everyone can safely exit the house in the case of an emergency.
Third, if the individual’s condition increases their likelihood of wandering, having them wear a watch, bracelet, or other device that can be activated to identify their location should be a priority.
There are many steps that can be taken to minimize risks in a home and make it easier for emergency responders to be successful when they are needed.
To learn more, call or visit our website today.
There’s never enough time to accomplish everything on our “to do” list.
That’s why family members of loved ones with special needs might not feel it’s worthwhile to spend precious time building a network of peers and agencies in their community.
However, having a network of friends and advisors who you can trust for recommendations, and who understand your challenges, can be invaluable.
It requires an investment of time to build a trusted network, but the payback will almost always be a multiple of the time you invest.
Often opportunities arise in the Special Needs community that may require swift action or have limited availability.
The more contacts and connections you have the better your chances are of being able to take advantage of the opportunities.
Your knowledge of the available care providers and service agencies in your community will directly impact the quality of the care plan you develop for your loved one with Special Needs.
Network building is a lifelong exercise that is well worth the time required. To learn more, please call us, or visit our website today.
When a child reaches 18, parents no longer have an obligation to provide food, shelter, and medical care for them. While some individuals with special needs will find employment with full benefits, the reality is that most will not. The government is required to provide basic housing, medical care, and food to all adults who are unable to afford these things due to their disabilities. Families should register their loved one for government benefits at the earliest age possible, because it’s impossible to accurately forecast their future needs. By making benefits available to their loved one with a disability, families are able to stretch their savings and other resources even further. In Illinois, children should be added to the Prioritization of Urgency of Needs for Services, or P.U.N.S., (pronounced like the word puns) list as soon as their disability is identified. Illinois and many other states have waiting lists for services, and getting on the lists as soon as possible increases your odds of getting the services your family member needs. Access to government benefits is not automatic, so it’s essential to start the application process as soon as possible. For more information, call or visit our website today.
Many people don’t understand exactly what a fiduciary is, and why it matters. Fiduciaries are people who are required, by law, to place your interests ahead of their own. They provide independent and objective advice. An attorney is an example of a fiduciary professional. The vast majority of people who refer to themselves as financial advisors, however, are NOT fiduciaries. Many so called financial advisors are just sales representatives for their insurance company or investment brokerage firm. Conflicts of interest are rampant among advisors who are not fiduciaries and those conflicts may cause families to overpay for insurance and investments while receiving advice that may not be in their best interest. By confirming you’re working with a fiduciary financial advisor, you can be assured that they’ll have your best interest in mind when making recommendations, and won’t be influenced by incentives or payments by firms pushing products. To learn more about our Fidicuary Promise, call us today, or visit our website at www.oakwealth.com.
While it might seem easiest to name a relative to play the role of guardian, trustee, and caregiver of your loved one with special needs, it’s almost never the best approach for many reasons. First, the roles of guardian and trustee require administrative and financial skills that not all relatives possess. Second, the roles can be very time consuming. Third, is the toll they take on the people who perform these roles – an issue that’s often overlooked. Many caregivers suffer from increased anxiety, resentment about the amount of time required to deliver the care, and financial losses for paying out of pocket expenses for the person in need. Often, well-meaning relatives offer to be caregivers without fully understanding how challenging it can be. The best approach is to consider professionals for the various roles, with a caring relative providing oversight of the professionals. It’s essential to consider whether a relative or professional is best suited for these roles when creating or reviewing estate documents, letters of intent, and care plans. Call or visit our website to learn more.
Many people believe that if their will states that all assets are supposed to pass to their child’s Special Needs Trust at their death, that they will. They are wrong! Many, if not most, of a family’s assets will NOT pass according to their wills. Beneficiary designations on life insurance policies, IRA accounts, company retirement accounts, pension plans, and accounts that have transfer-on-death provisions override the will and dictate where the assets go at the owner’s death. Sadly, many families don’t take all the necessary steps to ensure that they have all their beneficiary designations properly established. A well-drafted estate plan will include the specific way for beneficiary designations to be listed on policies and accounts that have them. It’s not enough to merely file a change of beneficiary form to change beneficiaries. It’s essential to get documentation back from the insurance companies and retirement plan sponsors CONFIRMING THE BENEFICIARIES to ensure the assets will transfer as intended. For more information, please give us a call or visit our website today.
Why should you hire Oak Wealth Advisors? When we first meet with you, we don’t ask how much money you have; we ask how we can help you. Oak Wealth Advisors was founded with a passion for helping families with Special Needs members achieve their goals, not for being the largest or most profitable financial services firm. We’re among a small percentage of firms that put our clients’ interests ahead of our own – we ONLY get paid by our clients. Many financial advisors get kickbacks from mutual fund firms and brokerage firms, incentive payments for making referrals, and bonuses for meeting sales targets. Advisors at those other firms are chasing multiple sources of revenue, so their focus is divided. Our SOLE FOCUS is on our CLIENTS. Isn’t that where you want your financial advisor’s focus to be? At Oak Wealth Advisors, we use our knowledge and experience to give you more time to enjoy your life while we invest your wealth prudently, monitor your financial risks, and assist you with all of your financial and Special Needs planning decisions. We also collaborate with your other trusted advisors, and listen to ensure that we maintain our focus on your highest priorities. If you are seeking a relationship with an experienced, independent, financial advisor who’ll prioritize your needs and goals, and will actively listen and proactively communicate with you, we look forward to hearing from you.
Often the biggest concern of parents with Special Needs children is how their children will be cared for after they’re gone. While good legal planning is essential, there is a non-legal document that may be the most valuable thing parents can leave behind when they pass away. A Special Needs Care Guide allows a family to document the essential facts that future care givers need to know to be successful. The details should include medical and contact information as well as information about routines, likes, dislikes, goals, and family traditions. We believe that the best Special Needs Care Guides are maintained electronically so that they can be easily updated and shared with those involved with the individual’s care. While the process of completing the document can be emotionally challenging, the benefits far outweigh the time and effort that’s required. If you want to help ensure that your loved one with special needs has the best future care possible, you’re welcome to download a free copy of the Oak Wealth Advisors’ Special Needs Care Guide template from our website at www.oakwealth.com.
Most families with special needs members have 2 top priorities – keeping them safe from financial abuse and helping them maintain eligibility for government benefits. Including a Special Needs Trust in their estate planning allows a family to ensure that the assets they leave behind for their loved one with special needs will be used for that person’s benefit. Because the Trustee of the Special Needs Trust is the only person who can approve a distribution, the ability for financial exploitation is minimized. In addition, the Trustee bears the fiduciary responsibility for managing the assets which increases the likelihood that the assets will be managed well. When it comes to government benefits, if the individual has as little as $2,000 in his or her name, the individual will NOT be eligible to receive Supplemental Security Income, also known as SSI, and Medicaid services. However, money in a Special Needs Trust, regardless of the amount, is not included in the calculation when the government evaluates the individual’s available resources. The Trust could contain millions of dollars and the individual would still be eligible to receive SSI and Medicaid. While creating Special Needs Trusts requires spending money with an attorney, the value of the Trust is significant. To learn more, call us today or visit our website.
People often ask us if they can use an ABLE Account instead of a Special Needs Trust to save for the future expenses of their loved one with Special Needs. ABLE Accounts have many attractive features which make them valuable as a savings option. They are tax-free accounts that aren’t included in the government’s calculation of the individual’s available resources, as long as the balance stays below $100,000. They can be opened online and funded with any amount up to $14,000 per year. While ABLE Accounts have many benefits, they also have limitations, and we recommend they be used together with Special Needs Trusts, rather than in place of them. ABLE Accounts are only able to receive $14,000 in deposits per year which eliminates them as an option for large inheritances. Because of the limit on the maximum account size, families need to be sure to spend down the ABLE Account as the balance rises to avoid any loss of benefits if the account exceeds $100,000. Also, any balances remaining in ABLE Accounts at the beneficiary’s death must be used to repay the government for Medicaid services received during the individual’s lifetime. Therefore, families should consider using ABLE Accounts as a savings account to handle smaller amounts of money and Special Needs Trusts for larger balances. Call or visit our website for more information.
The good news for families with special needs members is that ABLE account benefits have continued to grow since their inception in 2016. A number of states are now offering a state income tax deduction for contributions to the state’s ABLE account. Individuals are now able to contribute their earnings up to the annual poverty level, 12,140 dollars in 2019, and is indexed annually. Families with College 529 Savings Plans, not used for school expenses, can rollover up to $15,000 per year to an ABLE Account. Some newer states to offer ABLE are now eliminating Medicaid payback requirements on the account balance at the death of the beneficiary, and others are trying to the same. The contribution limits to these plans, indexed to the federal gift tax annual exemption amount, was unchanged in 2019, but seems likely to increase in the future. There is growing support to expand the age of eligibility to open an ABLE account from the current onset of disability age of 26 to age 46. We anticipate additional enhancements will be made to the ABLE account features in the years to come. Talk to Oak Wealth Advisors about your options and learn more about this and other Special Needs financial planning and other resources – visit: https://oakwealth.com/special-needs-resources-and-relationships/ Or contact Oak Wealth Advisors today at Phone: 847-945-8888 From the day we began our firm, we have operated as a fiduciary firm. What does this mean for you? Find out Here… https://oakwealth.com/fiduciary-manifesto/
The challenges faced by families with loved ones with special needs are significant. It is essential, that regardless of the size of a family’s own financial resources, that they evaluate and access as many resources and opportunities as possible for their loved one. The government will provide income, health care, food and housing assistance to those who qualify. Some of these programs require that the individual qualify for means-tested benefits like SSI and Medicaid. There are also community organizations that provide recreational activities and employment supports to assist individuals in living their lives to the fullest extent possible. The organizations also provide programs and support for the parents and siblings of the individuals with special needs. With so many options available, it can be difficult to make an informed choice. But it’s critical that families build a network for accessing information to give their loved one the best support possible. Talk to Oak Wealth Advisors about your options and learn more about this and other Special Needs recommendations and resources – visit: https://oakwealth.com/special-needs-services-resources/ Or contact us at (847) 945-8888. From the day we began our firm, we have operated as a fiduciary firm. What does this mean for you? Find out Here… https://oakwealth.com/fiduciary-manifesto/
Insurance is commonly used to fund an individual’s Special Needs Trust. Many families believe TERM life insurance will provide a sizable death benefit that can be used to support their loved one with special needs.Term insurance typically is not available once an individual reaches the age of 65 or 70. A family that pays premiums for decades may be left with no life insurance benefits for their loved one if they live into their eighties. While term life insurance is appropriate for covering lost wages due to a death prior to 70, it’s NOT permanent insurance coverage. Since a loved one with special needs has a permanent need, they need a permanent insurance policy. Permanent life insurance comes in a variety of different forms which a family can choose among. The key is to make sure that the policy will never expire as long as premiums are paid every year. If you have questions about a special needs child’s term insurance or special needs trust, contact Oak Wealth Advisors today. Phone: 847-945-8888 Talk to Oak Wealth Advisors about your options and learn more about this and other Special Needs recommendations and resources – visit: https://oakwealth.com/special-needs-services-resources/ From the day we began our firm, we have operated as a fiduciary firm. What does this mean for you? Find out Here… https://oakwealth.com/fiduciary-manifesto/
A Special Needs Trust is an essential part of a successful special needs financial plan. Unfortunately, a number of attorneys draft the Special Needs Trust as part of a parent’s individual trust to be the beneficiary of the parent’s trust’s assets. Problems can arise when individuals other than the parent wish to make gifts or leave inheritances to the Special Needs Trust. In many cases, Special Needs Trusts cannot be the recipient of gifts from the other relatives, as they only come into existence when the parent dies. Instead, these trusts should be drafted as stand-alone documents, for two reasons. First, the Trust could then immediately be the recipient of gifts and inheritances from anyone. Second, they provide more privacy, as the government will only be reading the Special Needs Trust and not any of the family’s other estate planning documents. To find out more about Special Needs Trusts as stand alone documents, speak with us today. Contact Oak Wealth Advisors – Phone: 847-945-8888 Talk to Oak Wealth Advisors about your options and learn more about this and other Special Needs recommendations and resources – visit: https://oakwealth.com/special-needs-resources-and-relationships/ From the day we began our firm, we have operated as a fiduciary firm. What does this mean for you? Find out Here… https://oakwealth.com/fiduciary-manifesto/
Maintaining Inadequate Medical Records for your Special Needs Planning is another mistake. Here is why and what you should do…
Medical record keeping can be burdensome and at times depressing. However, the benefits of having comprehensive medical records exceed the challenges. In order to qualify for both means-tested, like Medicaid and SSI, and no asset limitation benefits such as SSDI and Medicare, individuals must be able to prove their disability. The government requires medical records, including written letters from physicians, to confirm disabilities.
ABLE [pronounced “able”]accounts also require individuals to have documentation of a qualifying medical disability in order to qualify. Future care givers will also be better equipped to keep your loved one healthy, if detailed medical records are available for review. These are some reasons why maintaining up to date medical records is essential.
To find out more about medical records and special needs planning, contact us today – Phone: 847-945-8888
Talk to Oak Wealth Advisors about your options and learn more about this and other Special Needs recommendations and resources – visit: https://oakwealth.com/special-needs-resources-and-relationships/
Special Needs Planning Mistake 5 Missing Government Benefits for Which You are Eligible such as SSI, Medicaid, Social Security Disability. Read why it is a mistake to not have these in place… For individuals with a significant disability, SSI is often their sole source of income and Medicaid is their only medical insurance. While these government benefits are important, there may be others you’re entitled to, but are unaware of. Some examples include: The Supplemental Nutrition Assistance Program, or SNAP, card for up to $200 a month for food. Medicare insurance, once a parent begins receiving Medicare, the child with a disability becomes eligible 24 months later. This Medicare insurance is in addition to Medicaid insurance. Social Security Disability income – When a parent reaches full retirement age, their child with a disability, and no work record, is eligible for income based on their parent’s work record. Many individuals with disabilities can also qualify for the Housing Choice Voucher Program to cover some, or all of their rent. Oak Wealth Advisors can discuss these programs with you, so you can apply for all the programs for which you qualify. Contact us at Phone: 847-945-8888 Talk to Oak Wealth Advisors about your options and learn more about this and other Special Needs recommendations and resources – visit: https://oakwealth.com/special-needs-resources-and-relationships/
According to our financial planner for those of Special Needs, failing to communicate your intentions to your relatives is a mistake. Do you have a Trustee or Guardian?
Nobody wants to see a lifetime of hard work go to waste after they die. The key to ensuring that your loved one with special needs lives a full life with the best care is communication with those who play important roles. While it can be difficult to have a discussion about what will happen when you die, it is essential. Some relatives will expect to be a playing a role, while others will have no expectations.
If there is a relative you plan to designate as a Trustee, Guardian or care provider, it’s far better to let them know now. The advance notice provides you time to find another individual, if the person you designated declines. Also, by informing them now, and sharing your Care Guide or Letter of Intent, you can answer any questions they may have. Once you’ve made the initial communication, be sure to update those involved as the planning changes.
Talk to Oak Wealth Advisors about your options and learn more about this and other Special Needs recommendations and resources – visit: https://oakwealth.com/special-needs-services-resources/
Special Needs Planning Mistake 3 Not Verifying Beneficiary Designations, Retirement Accounts and more is a mistake. Learn why… Most people think that their will dictates where all of their assets will go after they die. While wills and Trusts identify who’ll inherit many assets, they don’t control where insurance proceeds will go nor determine the beneficiary of an employer retirement account or IRA. Beneficiary designations determine who gets the money when the owner dies. Beneficiary designations ensure that assets flow into a Special Needs Trust and not directly to the individual with a disability. This distinction can be the difference between maintaining and losing, temporarily, government benefits such as Medicaid and SSI. A problem we often encounter is that people wrongly assume they know who the beneficiaries are on their retirement accounts and insurance policies. A beneficiary change requested, but not implemented by the carrier, can also be problematic. We’ll help you here at Oak Wealth Advisors verify all your beneficiaries and avoid any incorrect distributions.
Assuming Guardianship is Appropriate for All Individuals with Special Needs is a mistake. Learn why… Guardianship might be a good idea for your loved one with special needs, but you should consider both the benefits and the challenges. Guardianship is the transfer of rights from one person to another by a judge, who is also the only one with power to return those rights. You must consider whether it’s in a special needs person’s best interest to have their rights removed. Guardianship is usually used to assist an individual with a disability in making financial and health care decisions. In cases of severe impairment, it makes sense. However, when the disability involves some cognitive limitations, but the individual can do some things for themselves, the decision is more difficult. In many cases, there may be more beneficial and less costly alternatives, such as Powers of Attorney. If you’re considering Guardianship for a loved one, talk to Oak Wealth Advisors, your Special Needs Expert, about your options and learn more about this and other Special Needs Financial Planning and resources – visit: https://oakwealth.com/special-needs-resources-and-relationships/ Or contact us at Oak Wealth Advisors today – Phone: 847-945-8888. From the day we began our firm, we have operated as a fiduciary firm. What does this mean for you? Find out Here… https://oakwealth.com/fiduciary-manifesto/
Oak Wealth Advisors was founded with the intention of helping as many families as possible with loved ones with special needs develop and implement comprehensive financial plans while growing their wealth to support their families’ needs. All Oak Wealth Advisors employees have personal family experiences navigating the challenges in the special needs community. We choose to work at Oak Wealth Advisors because we believe in the mission and we take great joy in helping families reduce their stress related to caring for their loved one with special needs. Unlike other firms that sell insurance or other financial products as their means of getting compensated by their clients, we get paid by our clients for providing them with objective planning advice and helping them grow their savings. We go home every night knowing that we have made a positive difference in our clients’ lives. From the day we began our firm, we have operated as a fiduciary firm. What does this mean for you? Find out Here… https://oakwealth.com/fiduciary-manifesto/ Talk to Oak Wealth Advisors about your options and learn more about this and other Special Needs financial planning and other resources – visit: https://oakwealth.com/special-needs-resources-and-relationships/ Or contact Oak Wealth Advisors today at Phone: 847-945-8888
