Support the Special Needs Trust Fairness Act of 2015 for the Disabled (S.349)
Disabled Individuals who are able Should be allowed to Manage their own Assets
1) S.349 will allow disabled individuals to set up their own Special Needs Trust* without needing to hire an attorney and go to court. HISTORY: Persons with disabilities face potentially impoverishing long-term care costs. Many must rely on programs like Medicaid to cover these high costs. Currently, disabled individuals who are still cognitively able to manage their own financial assets are not allowed to set up a Special Needs Trusts* for themselves. Traditionally, Special Needs Trusts are set up by third-parties, usually family members, like parents, who want to safely provide for a disabled person after their death.
2) S.349 will allow disabled individuals, who are mentally capable, to manage their trust, without going through a third-party who often takes a large "fee" to manage it for them. HISTORY: Special Needs Trusts are currently managed by third-parties -- hopefully, a trusted relative, but too often enough, a stranger. By leaving out ?the individual,? the current law, in effect, decrees that ALL persons with disabilities do not have the mental capacity to handle their own affairs. Usually, third-party Trustees take an often high monthly fee, which decreases the funds available to the disabled beneficiary.
3) S.349 will allow the disabled individual to protect both current and future assets, while concurrently being able to receive benefits. This bill will not open the door to more people receiving benefits. Rather, it gives individuals with disabilities the opportunity to control their own affairs and removes the fundamental indignity of being presumed mentally incompetent. Their trust can allow them to pay for services such as additional medical care and treatments, needed living accommodations, necessary supplements, and other, related expenses not covered by Medicaid. S.349 will also protect any future non-work-related income, such as money left to them in a will, income gained by selling assets, or similar change in income, so they can use their savings and these funds for homeowners expenses such as housing costs, home repairs, and property taxes; clothing; food; other necessities; and miscellaneous needs. HISTORY: As it stands now, a disabled person without a Special Needs Trust can not protect their assets. They are required to reimburse the Government for extra income they receive (e.g., they win 2,000 in the Lottery) because they have received past benefits. This is not fair to a disabled person who most likely needs the cash for key necessities because they are not able to earn an income through working.
*WHAT IS A SPECIAL NEEDS TRUST?
A special needs trust is a trust designed for beneficiaries who are disabled, either physically or mentally. It is written so the beneficiary can enjoy the use of property that is held in the trust for his or her benefit, while at the same time allowing the beneficiary to receive essential needs-based government benefits.
2) S.349 will allow disabled individuals, who are mentally capable, to manage their trust, without going through a third-party who often takes a large "fee" to manage it for them. HISTORY: Special Needs Trusts are currently managed by third-parties -- hopefully, a trusted relative, but too often enough, a stranger. By leaving out ?the individual,? the current law, in effect, decrees that ALL persons with disabilities do not have the mental capacity to handle their own affairs. Usually, third-party Trustees take an often high monthly fee, which decreases the funds available to the disabled beneficiary.
3) S.349 will allow the disabled individual to protect both current and future assets, while concurrently being able to receive benefits. This bill will not open the door to more people receiving benefits. Rather, it gives individuals with disabilities the opportunity to control their own affairs and removes the fundamental indignity of being presumed mentally incompetent. Their trust can allow them to pay for services such as additional medical care and treatments, needed living accommodations, necessary supplements, and other, related expenses not covered by Medicaid. S.349 will also protect any future non-work-related income, such as money left to them in a will, income gained by selling assets, or similar change in income, so they can use their savings and these funds for homeowners expenses such as housing costs, home repairs, and property taxes; clothing; food; other necessities; and miscellaneous needs. HISTORY: As it stands now, a disabled person without a Special Needs Trust can not protect their assets. They are required to reimburse the Government for extra income they receive (e.g., they win 2,000 in the Lottery) because they have received past benefits. This is not fair to a disabled person who most likely needs the cash for key necessities because they are not able to earn an income through working.
*WHAT IS A SPECIAL NEEDS TRUST?
A special needs trust is a trust designed for beneficiaries who are disabled, either physically or mentally. It is written so the beneficiary can enjoy the use of property that is held in the trust for his or her benefit, while at the same time allowing the beneficiary to receive essential needs-based government benefits.
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