special needs plan

Passing on Assets to People with Special Needs

As the year comes to an end and the holidays approach, many people consider making gifts to their loved ones. Not only is passing assets on an excellent way to show your love and consideration for your family members, but it is also a great strategy to reduce the risk of taxes. This is because current federal tax law allows taxpayers to gift amounts of up to $15,000 each year to a recipient without this being counted against a person’s lifetime gift exemption of $11.4 million.  There is also no better time than the present to make these distributions because the $11.4 million threshold will reduce to $5.49 million in 2026. This article reviews some special considerations that you should remember to follow, however, if you decide to transfer assets to a loved one with special needs. Anticipate the Risks If not properly navigated, passing on assets to loved ones with special needs can end up interfering with that person’s eligibility for government benefits. This is not the only risk involved with transferring assets, though. Even if a loved one does not receive Social Security Insurance or Medicaid, directly transferring assets might still not be a good idea if one     Read More

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Understanding When it is Time to Change Special Needs Plans

One of the greatest mistakes that many people make about special needs plans are thinking that estate planning is a one-and-done process. Even after properly appointing a guardian, trustee, health care proxy, and other necessary agents for a special needs plan, there are still circumstances that can arise and necessitate a change of these documents.    The following will review some important steps to follow to make sure that agent designations on special needs documents are properly updated.   Routinely Review Your Special Needs Plan   It is a wise idea to review your special needs agent appointment on a routine basis. It is also a good idea to stay in constant communication with your special needs agent. This is because changes inevitably occur that will change the appropriateness of your selection. The problem, however, comes in deciding how often you should review your estate planning decisions. Once a year is a reasonable guideline for reviewing these plans.    When to Change Special Need Agents   Even if you routinely review special needs documents, it can be challenging to determine exactly when to replace an agent. You should consider replacing a special needs agent any time after there has been     Read More

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