What Are Elder Law and Special Needs Planning?Elder law and special needs planning involve preparing for expected and unexpected life circumstances, including the possibility of becoming incapacitated as well as protecting and providing for future needs of loved ones with disabilities.At its core, Elder Law focuses on the unique needs of older persons and practice areas that address issues of concern for aging adults, adults with disabilities/incapacity, their families and caregivers.  Unlike traditional estate planning, Elder Law begins by assisting you with issues associated with a long and healthy life, rather than simply planning for death.  It mixes legal and practical issues such as being able to continue residing in your home if you had a chronic condition, having someone help in managing your finances, and not becoming a victim of financial abuse in the process.  Elder law endeavors to help you solve the problem of not knowing what you dont know.Special Needs Law focuses on solving legal problems for individuals with special needs and their caregivers.  Although there is no uniform definition of special needs, the phrase describes individuals with a wide variety of physical or mental conditions who require assistance with personal care needs, activities of daily living, paying bills, managing finances, etc., who may be vulnerable to and need protection from exploitation or abuse, and who may need access to public benefits or any number of other types of assistance. If you currently provide care for a child or loved one with special needs (such as mental or physical disabilities), you must have contemplated what may happen to him or her when you are no longer able to serve as the caregiver.  Frequently, parents and grandparents are concerned about how their children and grandchildren will be cared for after the parents or grandparents deaths and want to plan in advance to protect their special needs loved one.  Elder Law and Special Needs Planning encompass many different fields of law, including, for example:         Disability planning, durable powers of attorney, living trusts, advance directives, other tools to      delegate management and decision-making to another in case of incompetency or incapacity         Estate planning, including the management of finances and assets during life and disposition on     death using trusts, wills, and other instruments         Special/Supplemental Needs Trusts         Conservatorships and guardianships         Long-term care planning and placements          Trust and probate/estate administration         Elder abuse and financial exploitation         Medicaid planning         Retirement and Social Security planningWhen each day seems to present a new challenge, thinking about the future can be overwhelming.  A plan can help break things down into achievable pieces. No matter what age or stage, it is getting started that counts.This article is for informational purposes only and is not intended to be legal advice.This article was submitted by Ashley Day, Esq., A Day Law, LLC.  Reach her at 251-277-3377.  

For nearly a decade, people with disabilities have had the option to accumulate savings in a special tax-free account without risking their means-tested public benefits. In 2024, the annual limit on how much money one can deposit into these savings vehicles, known as ABLE accounts, will rise, allowing individuals to add up to $18,000 per year.What Is an ABLE Account?Many people across the disability community rely on such government assistance as Medicaid, Supplemental Nutrition Assistance Program (SNAP) benefits, or Supplemental Security Income (SSI). Yet having too many assets to their name can disqualify them from receiving these often critical benefits. For example, in most states, the resource limit to qualify for Medicaid is just $2,000. In 2014, Congress signed the Achieving a Better Life Experience (ABLE) Act into law to help address this issue.Individuals with an ABLE account can save up to a total of $100,000, tax-free, while remaining eligible for public assistance programs. Family members, friends, and others can make contributions to the account, too. The disabled person can then use these funds to help maintain their independence by spending them on disability-related expenses, including assistive technologies, education, transportation needs, vacations, legal fees, and health care.Unlike a special needs trust (SNT), an ABLE account can be opened by the individual with the disability. This offers them considerably more control over the account funds compared with an SNT. Starting in 2024, the annual limit on contributions to ABLE accounts will be $18,000, up from $17,000 in 2023. Through the end of 2025, ABLE account owners who work can contribute their employment income to these savings vehicles even beyond the per-year deposit limit. (Learn more about these rules under the ABLE to Work Act.)The idea for these accounts derived from the concept of a 529 college savings plan. Similar to a 529 plan, funds in an ABLE account grow tax-deferred over time. In addition, each state administers its own ABLE account program.To qualify, you must meet the Social Security Administrations strict definition of disabled. You also must have incurred your disability before age 26. (Note that the age cutoff will shift to age 46 come 2026. According to estimates, this age adjustment will result in roughly 6 million more individuals becoming eligible to open these types of savings accounts.)Why Open an ABLE Account?People with disabilities are among those most at risk for financial disaster. According to research, just 10 percent of people of working age who are living with a disability are financially healthy.ABLE Accounts, or 529A accounts, can serve as a form of future financial support for these individuals. Yet the vast majority of those who could benefit from these accounts remain unaware of them. As of 2022, 8 million people were eligible for this type of account, yet a mere 120,000 had one in place.Get Support With ABLE Accounts To learn more about setting up this type of savings account, consult with Ashley Day Special Needs & Elderly Law at 251-277-3377.

Estate Plan Check-UpsEffective estate planning is personal, and its more than just deciding who to leave your assets to once you die.  Effective estate planning  is a comprehensive process that encompasses pre-need planning: health care decisions, financial management, and maintaining a delicate balance between independence and security.  Like your preventive doctor visits, you should regularly check in on your estate plan to ensure it fits your current needs, considers and plans for potential future care needs, and will give effect to your wishes now and in the future. Generally, estate planning involves creating a last will and testament, possibly a revocable trust, possibly an asset protection trust or a supplemental needs trust for a loved one who is unable to manage finances or may be vulnerable to abuse or exploitation.  Estate planning also involves important advanced directives, such as a durable financial power of attorney, a health care power of attorney, and a living will.   Creating an estate plan, or getting my affairs in order, tends to be an item on our to-do lists, for us to get done and move on to the next thing. However, while it may not be something you have to look at every month, or even every year, once your initial estate plan is completed, it is something that needs to be reviewed with some regularity.Most people get an annual physical when they are healthy, not when they are sick. They do this because they want to proactively spot any issues that could cause them to become ill in the future. The same concept can and should be applied when it comes to reviewing and updating your estate plan. Your estate plan may be healthy now, but you want to make sure that it stays that way by checking it regularly, to ensure it fits your needs and family circumstances, protects and provides for you now, and  accomplishes your goals and wishes in the future. Editors Note: This article is for informational purposes only and is not intended to be legal advice.  This article was submitted by Ashley Day, Esq.  Ashley Day Law, LLC.  Reach her at 251-277-3377. 

Choosing a Trustee for a Special Needs TrustWhen handled appropriately, special needs trusts can protect your loved ones assets and provide for their needs over time while allowing them to receive government benefits. As the trustee plays an invaluable role in managing the beneficiarys finances, protecting your loved ones interests, and maintaining your loved ones eligibility for benefits programs, selecting the correct trustee is crucial.When establishing a special needs trust, consider the following:Dependable family members or other trusted individuals can serve as trustees, as they know the beneficiary and can protect the beneficiarys interests.An independent trustee, such as a bank or trust company, can also manage the trust, lending specific financial knowledge.Special needs trusts can have co-trustees. Two family members can be co-trustees. A family member and an independent trustee can also collaborate, balancing personal connections and expertise.When a financial institution serves as a trustee, a family member can be a protector or advisor. Although this individual has no legal authority over the trust, the protector can advise the trustee about the beneficiarys needs.Choosing the Best CandidateGiven the power they will have to control your loved ones funds and look after their well-being, the trustee you select must be honest and reliable. Although the law imposes a fiduciary duty on trustees to act ethically, there is little court oversight, leaving beneficiaries vulnerable to dishonest actors. To ensure unselfish decisions, the person should have no conflicts of interest and should not receive personal funds from the trust.Understanding public benefits programs, such as Medicaid and Social Security, can help the trustee provide for the beneficiarys needs while preserving eligibility for these programs. Few family members will come into the role completely understanding public benefits regulations. Those without experience with Medicaid or Social Security should be willing to learn how these rules will affect the beneficiary and how to manage the trust to ensure the beneficiary maintains eligibility. A special needs planning lawyer can explain the law and provide guidance.In addition to solid ethics and a willingness to learn about public benefits programs, the trustee should be responsible, organized, and financially savvy. Handling investments, reports, records, and tax returns are part of the trustees role.The right trustee will also understand and respect the beneficiarys needs. The trustee should recognize the beneficiarys autonomy and strive to allocate funds to support independence while protecting your loved ones interests.Before you or your loved one appoints a trustee, talk to the person you have in mind and ensure that the proposed trustee wants to and can take on the role. Consider the persons health and life expectancy. The ideal trustee should be able to take on the rule for the duration of the beneficiarys life.Including another trusted individual as a successor trustee can protect the beneficiary if the first trustee passes away or can no longer manage the trust.Ashley Day is an Elder Law, Special Needs, Trust and Estate attorney.  Contact Ashley Day to learn more about selecting the best trustee for a special needs trust.  Call 251-277-3377 for more information.