Question: Should I name my daughter to be her older brother's trustee?
Answer: Probably not is you really love her.
Most people underestimate the complex tasks that a trustee must perform. The three main duties are:
1.Invest assets in a tax efficient way over a long period of time.
2.Distribute needed funds in a tax efficient way that does not undermine social security rules.
3.Report taxable activity to the IRS.
From my experience, most of the trusts that get into trouble are due to gross mismanagement of one or all of these duties. A more compelling reason against her nomination in this case might be that you place her in the unenviable position of constant conflict with her brother over the proper use of the money. If he gets it into his head that he wants something that she doesn't feel is a justified use of the funds there may be a conflict arise that could break the familial link that you hoped would always be there for him. Also, if he tends toward aggression, she could be in harms way. In the end, she may decide to cut and run.
My advice would be to use a professional trust company to handle the 3 tasks and name your daughter as Trust Advisor. This method will relieve her of the management burdens while still maintaining control over the trust managers. Now, if he wnats something outlandish she can tell him that it's out of her hands. This should keep her involved in his life, which is what you wnated in the first place.
Monday, December 13, 2004
Trustee for a son with a brain disorder.
Wednesday, December 01, 2004
Social Security problem.
Question: Can we get Medicaid back for our son? He lost it when they changed his benefit to SSDI when I retired. They said he now received too much income to qualify. We need the coverage since he has to wait 2 years for Medicare to start.
Answer: Yes you can.
Continuing Medicaid after SSI goes away.
§15.466(a) — Type Program 18. Individuals 18 and older who were denied SSI benefits on or after July 1, 1987, because of entitlement to or an increase in RSDI disabled adult children's benefits may be eligible for Medicaid if they otherwise would meet all current SSI eligibility criteria in the absence of those disabled adult children's benefits. Eligible individuals are also entitled to the exclusion of subsequent increase in those benefits.
To be eligible, an individual must
1. be at least 18;
2. have become disabled before 22;
3. be denied SSI benefits because of entitlement or an increase in RSDI disabled children's benefits received on or after July 1, 1987, and any subsequent increase; and
4. meet current SSI criteria if the children’s benefit is excluded.
If you are preparing to start on Social Security, you should contact SSA and inform them of your change in status and that you have a dependant receiving SSI and Medicaid. Tell them that you are aware that your dependant will be able to continue Medicaid under Type Program 18. This is usually all it will take to make the change. If you encounter any trouble, ask for an Aged and Disabled Specialist in the SSA office.
Your dependant will be eligible for Medicare and the 24-month waiting period will be waived due to the previous Medicaid coverage. Also, ask if they will be QMB eligible. More on that in a later posting.
Answer: Yes you can.
Continuing Medicaid after SSI goes away.
§15.466(a) — Type Program 18. Individuals 18 and older who were denied SSI benefits on or after July 1, 1987, because of entitlement to or an increase in RSDI disabled adult children's benefits may be eligible for Medicaid if they otherwise would meet all current SSI eligibility criteria in the absence of those disabled adult children's benefits. Eligible individuals are also entitled to the exclusion of subsequent increase in those benefits.
To be eligible, an individual must
1. be at least 18;
2. have become disabled before 22;
3. be denied SSI benefits because of entitlement or an increase in RSDI disabled children's benefits received on or after July 1, 1987, and any subsequent increase; and
4. meet current SSI criteria if the children’s benefit is excluded.
If you are preparing to start on Social Security, you should contact SSA and inform them of your change in status and that you have a dependant receiving SSI and Medicaid. Tell them that you are aware that your dependant will be able to continue Medicaid under Type Program 18. This is usually all it will take to make the change. If you encounter any trouble, ask for an Aged and Disabled Specialist in the SSA office.
Your dependant will be eligible for Medicare and the 24-month waiting period will be waived due to the previous Medicaid coverage. Also, ask if they will be QMB eligible. More on that in a later posting.
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