Special Needs Trusts

There are two types of special needs trusts: (1) a special needs trust that is funded with the disabled person's own assets—OBRA '93 Payback Trust; and (2) a special needs trust funded with assets from someone other than the disabled person, such as a parent or other family member—Third Party Special Needs Trust.

THIRD PARTY SPECIAL NEEDS TRUST

A special needs trust is a discretionary trust set up for the benefit of an individual who has a disability that substantially impairs that individual's ability to provide for his or her own care. The purpose of this trust is to maximize private resources available to a person with special needs to provide for his or her own care, and also to insure that the disabled person remains qualified, or is able to qualify in the future, for federal, state, and local government benefits. Currently, in Illinois as many other states, such trusts are exempt from consideration as an available resource to the disabled person and are insulated from reimbursement claims by the state when the disabled person dies.

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Small Estate Affidavit

The estate administration process can be complicated. However, there are some situations where an estate may be settled more quickly and efficiently through the use of a small estate affidavit.

• Are total personal assets under $100,000? If estate personal assets are $100,000 or less, then you can pass the asset on using a small estate affidavit. This affidavit cannot be used for real estate.
• If there is a will, file the will with the Circuit Clerk, obtain a certified copy of the will, and attach it to the small estate affidavit.
• If there is no will, then you will list each heir.

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Special Needs Trust Expenditures

Including but not limited to the following:

• ADDITIONAL PHYSICIAN VISITS OVER THE MEDICAID LIMIT
• APPLICANCES
• BICYCLE FITNESS EQUIPMENT/PERSONAL TRAINER
• BOTTLED WATER
• BUS OR TRAIN PASS CAB TRIPS

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Powers Of Attorney And Planning For Potential Disability

By: Carol A. Nolan, Attorney at Law

As the population grows older, legal issues of mental incompetence are taking on greater significance. Planning for possible disability and the continued management of assets is one concept of estate planning. There are three disability strategies for management of assets: Powers of Attorney for Healthcare and Property, Guardianship through the probate court, and Revocable Living Trusts. This article will discuss Powers of Attorney for Healthcare and for Property.

The Illinois Probate Act, 755 ILCS 45/2 et seq, Durable Powers of Attorney (hereinafter referred to as the "Act"), recognizes "each individual has the right to appoint an agent to make property, financial, personal, and health care decisions for the individual but that this right cannot be fully effective unless the principal may empower the agent to act throughout the principal's lifetime, including during periods of disability, and have confidence that third parties will honor the agent's authority at all times." The Illinois General Assembly enacted the Power of Attorney Act to address this need.

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