e estate S k y l i g h t S p e c i a l N e e d s P l a n n i n g - - PowerPoint PPT Presentation

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SPECIAL NEEDS PLANNING

S k y l i g h t F i n a n c i a l G r o u p S p e c i a l N e e d s P l a n n i n g Te a m S k y l i g h t S p e c i a l N e e d s P l a n n i n g Te a m

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GUIDANCE + DIRECTION

Time It rushes right by. We put off until tomorrow the things we know should be taken care of today. And then we put them off again…and again…until we look back and wonder, now what? Direction Where do we start when we feel like we’re already behind? How do we take that first step toward doing the things we know we should be doing? Guidance That’s where Skylight Special Needs Planning Team comes in. We’ll listen to your concerns and create a customized strategy to give you and your family the specialized guidance needed to face your unique challenges.

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• What will my child do after age 22? Work?
• Will I be able to retire?
• How do I choose a guardian or trustee?
• How do I write a letter of intent?
• Who will care for my child if I can’t?
• Do I need a special needs trust?
• What is the right amount of life insurance? Type?
• Can my child lose government benefits?
• Do I have a life plan for my child?
• What would happen to my son or daughter if I were disabled?

HAVE YOU EVER THOUGHT ABOUT?

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LIFE CARE PLANNING STAGES

Early Intervention

• Diagnosis, learning &

understanding

• Treatments &

medications

• Therapies & activities

Education

• Community support
• Organizational

resources

• Planning for the future

Transition

• Employment &

housing

• Guardianship
• Government benefits
• Future vision

Lifetime

• Family involvement
• Support teams
• Quality of life
• Daily activities

Ages s 0-3 Ages s 4-15 15 Ages s 16-22 22 Ages s 22+

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 Your family has unique resources in each of these 3

• segments. The integration of

these 3 teams of individuals is key to successfully navigating your future planning.

FOC OCUS US TEA EAMS MS

S k y l i g h t S p e c i a l N e e d s P l a n n i n g Te a m

Financial Medical Social

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 A collaborated approach to ensuring ultimate efficiency in your planning.

FINANCIAL TEAM

S k y l i g h t S p e c i a l N e e d s P l a n n i n g Te a m

Special Needs Financial Advisor CPA Debt Specialist Estate Planning Attorney Liability Specialist

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FINANCIAL POSITION ADEQUATE PROTECTION WEALTH STRATEGIES TAX REDUCTION STRATEGIES RETIREMENT PLANNING ESTATE PLANNING LIFE CARE PLANNING ASSISTANCE PROGRAMS

Financial Plan Life Care Plan Special Needs Financial Planning

S k y l i g h t S p e c i a l N e e d s P l a n n i n g Te a m

WHAT IS SPECIAL NEEDS PLANNING?

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FINANCIAL POSITION ADEQUATE PROTECTION WEALTH STRATEGIES LIFE CARE PLANNING TAX REDUCTION STRATEGIES RETIREMENT PLANNING ESTATE PLANNING ASSISTANCE PROGRAMS

S k y l i g h t S p e c i a l N e e d s P l a n n i n g Te a m

WHAT IS SPECIAL NEEDS PLANNING?

• Tracking your current

income & expenses

• Managing your debt
• Projecting your child’s

special needs expenses

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FINANCIAL POSITION ADEQUATE PROTECTION WEALTH STRATEGIES LIFE CARE PLANNING TAX REDUCTION STRATEGIES RETIREMENT PLANNING ESTATE PLANNING ASSISTANCE PROGRAMS

S k y l i g h t S p e c i a l N e e d s P l a n n i n g Te a m

• Provide for survivors in case of

premature death

• Protect a portion of income

lost if disabled

• Preserve wealth for future

needs

• Provide funding for special

needs vision

WHAT IS SPECIAL NEEDS PLANNING?

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FINANCIAL POSITION ADEQUATE PROTECTION WEALTH STRATEGIES LIFE CARE PLANNING TAX REDUCTION STRATEGIES RETIREMENT PLANNING ESTATE PLANNING ASSISTANCE PROGRAMS

S k y l i g h t S p e c i a l N e e d s P l a n n i n g Te a m

• Provide for education

expenses

• Reviewing your investment

portfolios

• Providing for support, care &

maintenance

• Preservation of eligibilities

WHAT IS SPECIAL NEEDS PLANNING?

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FINANCIAL POSITION ADEQUATE PROTECTION WEALTH STRATEGIES LIFE CARE PLANNING TAX REDUCTION STRATEGIES RETIREMENT PLANNING ESTATE PLANNING ASSISTANCE PROGRAMS

S k y l i g h t S p e c i a l N e e d s P l a n n i n g Te a m

• Creating a special needs

vision

• Creating a letter of intent
• Determining the organizations

that can provide resources

• Family involvement
• Insuring asset threshold

WHAT IS SPECIAL NEEDS PLANNING?

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FINANCIAL POSITION ADEQUATE PROTECTION WEALTH STRATEGIES LIFE CARE PLANNING TAX REDUCTION STRATEGIES RETIREMENT PLANNING ESTATE PLANNING ASSISTANCE PROGRAMS

S k y l i g h t S p e c i a l N e e d s P l a n n i n g Te a m

• Help minimize federal & state

income taxes

• Protect against future income

tax liabilities

• Develop long term tax

reduction strategies

• Managing eligible special

needs deductions

WHAT IS SPECIAL NEEDS PLANNING?

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FINANCIAL POSITION ADEQUATE PROTECTION WEALTH STRATEGIES LIFE CARE PLANNING TAX REDUCTION STRATEGIES RETIREMENT PLANNING ESTATE PLANNING ASSISTANCE PROGRAMS

S k y l i g h t S p e c i a l N e e d s P l a n n i n g Te a m

• Help ensure adequate

retirement income

• Government & employee

benefit plans

• Personal savings &

investments

• Project the impact of an early

retirement

WHAT IS SPECIAL NEEDS PLANNING?

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FINANCIAL POSITION ADEQUATE PROTECTION WEALTH STRATEGIES LIFE CARE PLANNING TAX REDUCTION STRATEGIES RETIREMENT PLANNING ESTATE PLANNING ASSISTANCE PROGRAMS

S k y l i g h t S p e c i a l N e e d s P l a n n i n g Te a m

• Outline appropriate estate

planning vehicles

• Trusts including all types of

special needs trusts

• Choosing guardians, executors

& trustees

• Planned giving strategies

WHAT IS SPECIAL NEEDS PLANNING?

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FINANCIAL POSITION ADEQUATE PROTECTION WEALTH STRATEGIES LIFE CARE PLANNING TAX REDUCTION STRATEGIES RETIREMENT PLANNING ESTATE PLANNING ASSISTANCE PROGRAMS

S k y l i g h t S p e c i a l N e e d s P l a n n i n g Te a m

• SSI & SSDI
• Medicaid
• Waiver programs
• Maintaining eligibility
• Insuring asset thresholds
• Notifying extended family

members

WHAT IS SPECIAL NEEDS PLANNING?

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PERSON CENTERED PLANNING

Special Needs Individual Accountant/Debt Specialist

Family Members or Caregivers Attorney/Liability Specialist Social or Case Workers

Medical Professionals

Financial Professional, Certified in SpecialCareSM

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Financial Medical Social

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TOTAL INTEGRATION

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THE ABLE ACT- WHAT IS IT?

The Achieving a Better Life Experience Act of 2014 (the ABLE Act) that was signed into law as part of the December 2014 Tax Extender package, allows states to create qualified Achieving a Better Life Experience (ABLE) programs beginning in 2015. What are the benefits? ABLE accounts offer three main benefits.

• tax-deferred growth
• not included in income
• generally disregarded in determining eligibility for Medicaid and

Supplemental Security Income (SSI) benefits.

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WHO IS AN ELIGIBLE INDIVIDUAL/ DESIGNATED BENEFICIARY?

You are eligible if you are

• Eligible for Social Security Disability Insurance (SSDI) or SSI benefits based on blindness or

disability; or

• If you have a disability certification filed with the IRS for the tax year.

Who can contribute?

• Anyone may make contributions to an ABLE account, including the eligible individual. Total

contributions from all contributors in any year are limited to the gift tax annual exclusion ($15,000 for 2018).

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TAXATION AND EXPENSES

Taxation

• If ABLE account distributions do not exceed the designated beneficiary’s qualified disability expenses, none of

the distribution is includible in income.

• 10% penalty for taxable

Qualified Disability Expenses

• Expenses related to the eligible individual’s blindness or disability made for the benefit of a designated

beneficiary, including:

• Education; Housing; Transportation; Employment training and support; Assistive technology and

personal support services; Health

• Prevention and wellness; Financial management and administrative expenses; Legal fees
• Expenses for oversight and monitoring
• Funeral and burial expenses

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TREATMENT FOR MEDICAID AND SSI

Treatments are not considered in determining eligibility for means-tested federal benefit programs or the amount of the benefits under the programs. There are two exceptions:

• Distributions from the ABLE account for housing expenses are

considered as income in determining eligibility for SSI.

• If the ABLE account balance exceeds $100,000, the excess is

considered a resource of the designated beneficiary. If this happens, the designated beneficiary’s SSI benefits are suspended until the individual’s resources are less than $100,000.

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ESTABLISHMENT OF ABLE PROGRAMS

Must be established and maintained by a state, a state agency, or a state instrumentality (a program state). To qualify as an ABLE program, the program must meet the following requirements:

• Allow contributions to an account to meet the qualified

disability expenses of the account’s designated beneficiary;

• Limit a designated beneficiary to one ABLE account;
• Limit ABLE accounts under the program to designated

beneficiaries who are either a resident of the state or a resident of a contracting state

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ABLE ACT CONCLUSION

The ABLE Act allows accounts to be established for qualifying individuals that can supplement their Medicaid and SSI benefits without disqualifying them from receiving benefits. ABLE accounts are created under state plans and are subject to limitations on the amounts contributed and how distributions can be used. They will not replace special needs trusts in all situations but can provide significant benefits without the complexities of a special need trust.

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NOW ASK YOURSELF AGAIN?

• What will my child do after age 22? Work?
• Will I be able to retire?
• How do I choose a guardian or trustee?
• How do I write a letter of intent?
• Who will care for my child if I can’t?
• Do I need a special needs trust?
• What is the right amount of life insurance? Type?
• Can my child lose government benefits?
• Do I have a life plan for my child?
• What would happen to my son or daughter if I were

disabled?

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KNOWING WHERE TO TURN FOR ANSWERS

S e c u r i t i e s , i n v e s t m e n t a d v i s o r y s e r v i c e s a n d f i n a n c i a l p l a n n i n g o f f e r e d t h r o u g h q u a l i f i e d r e g i s t e r e d r e p r e s e n t a t i v e s o f M M L I n v e s t o r s S e r v i c e s , L L C M e m b e r S I P C O S J : 2 0 1 2 W . 2 5 t h S t r e e t , S t e . 9 0 0 C l e v e l a n d , O H 4 4 1 1 3 . 2 1 6 . 6 2 1 . 5 6 8 0 M M L I n v e s t o r S e r v i c e s L L C , d o e s n o t p r o v i d e t a x p l a n n i n g s e r v i c e s . C R N 2 0 2 0 0 5 - 2 3 0 3 9 1