Estate Planning for Special Needs Families

I was honored to talk with the Down Syndrome Support Team (DSST) in Saline this past Sunday about estate planning when you have special needs in your family.  Many families have children that may require or presently require assistance outside of what the family can provide.  This can be either while the child is still a minor, or when they become an adult.  Unfortunately many of the programs require a "poverty" level economic status--and will not allow qualification unless assets are under a certain amount of money.

However, there are solutions to this potential or real problem, in the form of special needs estate planning.  First, the family can set up an Amenities Trust.  An Amenities Trust is a special type of trust that is designed to provide supplemental benefits to an individual with special needs who may be entitled to SSI (Supplemental Security Income), SSDI (Social Security Disability Insurance), and/or Medicaid.  "Amenities" are various sorts of items that are not food or shelter, so it can include non-grocery items, education, transportation, vacation, etc.  It also does not involve a direct transfer of cash.  Amenities Trusts are generally used by parents with special needs children.

A second option is what is called an OBRA 93 Trust.  An OBRA 93 Trust is a special type of Trust that is designed to protect an individual's own assets when that individual has special needs and either receives or qualifies for certain benefits, such as SSI, SSDI or Medicaid.  There are differences between an OBRA 93 Trust and an Amenities Trust, and those should be discussed with a lawyer in order to determine what Trust is more suitable.

It is an honor to assist families with special needs children, and provide them with options so that they can share their love freely and provide for their children even if something happens and they aren't here anymore. 

You can learn more about the Down Syndrome Support Team at their website:  http://www.downsyndromesupportteam.com/.

If you need any information on estate planning or special needs estate planning, feel free to call me at 734-665-4441, or email me at walton@psedlaw.com, or learn more about Pear Sperling Eggan & Daniels, P.C. at www.psedlaw.com.

New Durable Power of Attorney Requirements in Michigan

On May 23, 2012, the Governor of Michigan signed a new law pertaining to Durable Powers of Attorney. The new law, Public Act 141 of 2012, lists new requirements for Durable Powers of Attorney, which become effective for all Durable Powers of Attorney signed after September 30, 2012.

A Durable Power of Attorney is a legal document that designates an agent who can act on your behalf for all of your financial transactions. Most of the time, Durable Powers of Attorney are effective only upon someone’s disability.

The new law requires that two witnesses sign the Durable Power of Attorney, or that it is notarized, or both. Further, the Durable Power of Attorney is now not effective unless the designated agent signs an acceptance of designation that sets forth all of their duties. This is the most significant change in the law.

While the law is only prospective and has no legal effect on Durable Powers of Attorney signed before October 1, 2012, it is highly probable that the banks will begin to refuse to honor any Durable Powers of Attorney that do not comply with the new requirements. It is a good idea to have an attorney look at your Durable Power of Attorney or revise it to comply with the new law, thus eliminating any potential problem in the future.

If you are interested in learning more, please call Wendy Alton at 734-665-4441 or email her at walton@psedlaw.com. More information about her firm, Pear Sperling Eggan & Daniels, P.C., can be found here: www.psedlaw.com.
 

Should you draft your own Will?

A recent article in US News & World Report states that there is an increase of people handling their own estate planning by drafting their own Wills. There are a number of online resources to do this, and some people assume that by doing this online themselves, they will save themselves hundreds or thousands of dollars?

Is this actually a good, sound practice? Should people, with little or no knowledge of the law, draft their own Wills?

There are numerous problems that can arise when one takes on the task of drafting their own Will. First, each state’s law is different, and there are different legal terms and requirements for an authentic Will in each state. These requirements are not easily learned online. Second, if a mistake is made, or if a person drafts a Will without understanding the full effect of its language, there will be thousands of dollars spent fixing it afterwards. Third, and worse, you may draft your own Will and it may legally distribute your property exactly opposite of how you intended.

We have seen numerous tragic cases where people have either drafted Wills themselves, or used online tools to draft them, and in the end, the Wills have been declared invalid, or worse yet, they have transferred assets contrary to the person’s true intention.

Don’t take the risk of drafting your own Estate plan. At Fausone Bohn, we have attorneys who will provide a free consultation, and discuss a range of choices, options, and plans. Our estate planning is often conducted on a flat-fee basis, and the rates are affordable.

Let an attorney, who is skilled in the law, help you fully think through and understand what choices you have, and let them help you pick the best options for you. It is worth the peace of mind that you will receive when you know that your estate plan is drafted exactly how you want it.

You can read the US News & World Report article here: The Dangers of DIY Estate Planning


If you are interested in learning more, please call Wendy Alton at 734-665-4441 or email her at walton@psedlaw.com. More information about her firm, Pear Sperling Eggan & Daniels, P.C., can be found here: www.psedlaw.com.