A Special Needs Trust (SNT) protects assets for someone who is chronically ill or physically or mentally disabled so that they can remain eligible for public benefits while being able to inherit or draw income from a separate fund.

Various benefits like Supplemental Security Income, Medicare, Medicaid, or other programs provide monetary assistance for qualifying individuals who make below a certain amount. SNTs are set up so that the individual has a resource that does not belong to them, but that they can still draw from. A trust of this kind does not count as part of the individual’s assets, therefore they can qualify for financial assistance while still retaining a source of income. Generally, the funds have to be used for certain purposes, such as medical expenses, payments for caretakers, transportation costs, and other things that public benefits do not cover.

Having a protected source of income in a Special Needs Trust is incredibly beneficial for someone with a disability or chronic illness, where medical and living expenses are high but disability benefits can only go so far. It is important that the SNT gets established before the beneficiary turns 65 years old.

There are different kinds of SNTs that accomplish the same goals—supplying the individual with income while they remain eligible for public assistance—but in different ways. Additionally, the party who creates the SNT will designate someone to control it. That person will oversee the management of the trust and disburse the funds to the beneficiary.

The disabled or chronically ill person can put their own money into a first party SNT that they can draw from later. However, first party SNTs may be subject to Medicaid repayment rules, meaning that the money is still considered the individual’s and will be used to evaluate whether they qualify for financial assistance programs.

There are also third party SNTs, which are also called Supplemental Needs Trusts, which have funds that get put into the trust by someone else, such as the parents of the individual, which the disabled or chronically ill person draws from later. These funds are not subject to Medicaid repayment rules and do not effect the beneficiary’s eligibility for public benefits.

An SNT can be created as part of someone’s will or as a standalone. If the SNT is created under a Last Will and Testament or a Living Will, then the beneficiary cannot withdraw funds until the testator dies. If an SNT is created on its own and not part of someone else’s will, the beneficiary does not need to wait to withdraw funds. They are also designated as revocable or irrevocable, meaning that if the beneficiary has the power to revoke the trust, the assets will be considered available for Social Security and Medicaid purposes (remember, these programs consider the individual’s finances when deciding how many benefits they can award). If the SNT is irrevocable, the beneficiary cannot dissolve the trust and the assets cannot be seized by certain programs.

When setting up a Special Needs Trust or any kind of fund for yourself or a loved one, you should consult an attorney to draw up a valid legal document that will ensure that the trust has a clear directive and purpose. Seek out an attorney who has experience in trusts, estate planning, elder or disability law.

Happy New Year! Whether you are celebrating with family, making goals to achieve in 2022, or planning for the future, we wish you health, wealth, and happiness!

In a real estate transaction, there is a buyer and a seller. There is also the buyer’s real estate agent (also called a realtor or a broker) and the seller’s real estate agent. The agents’ roles are to help the buyer and seller navigate the process of transferring real property and ensure that each individual’s interests are protected. The buyer searches for a home to purchase while their real estate agent negotiates the sale and prepares the purchase offer. The seller formally agrees to list their home for sale and authorizes their real estate agent to market the home, attract buyers, and negotiate a home sale on their behalf. Usually the buyer and seller will each have their own agent.

A mortgage lender (which could be a bank or a mortgage broker) helps the buyer apply and be approved for a mortgage. A buyer will usually work with a mortgage lender before looking at any homes with a real estate agent, because the mortgage lender will give the buyer a “pre-qualification” letter that states how much money the buyer is financially qualified to borrow in order to purchase a house. This “pre-approval” can be very important in a competitive real estate market, as it can make your bid more attractive to a seller than a potential buyer without pre-approval.

Once an offer is made, the buyer will usually be given the opportunity to hire a licensed home inspector who will evaluate the home and ensure that the property is up to county or state code. The home inspector will evaluate sanitary facilities, living, sleeping, cooking, and dining areas, water quality, temperature, roofing, electricity, any lead paint, ability to access the property without trespassing onto someone else’s property, ensure there is safe drinking water, make sure there are no pests, mold, or mildew, and consider any non-residential use of the property. Generally, the home inspector will assess the property to make sure the house is fit to live in safely and comfortably. The inspector then provides a written report, which can be used by the purchaser to negotiate certain repairs or upgrades as recommended in the report.

Buyers will also pay for an appraiser to inspect the homes and give a Notice of Value that shows the parties how much the home will cost. The primary function of the appraisal is to satisfy the lender that the home is worth the purchase price, since the home will be collateral for the loan.

A title company generally acts as the combined agent of mortgage company, buyer, seller, and other related parties, and their role is to ensure that the seller legally owns the property and can transfer the title to the new buyer. A buyer pays an initial deposit called “earnest money” to the title company to hold until the home’s closing, and the escrow officer is the person responsible for taking care of the money and having it available at closing to give the deed to the buyer. The company also issues a title insurance policy. An attorney may also be the escrow officer and replace the role of the title company instead.

The closing agent is either a title company or an attorney, who collects and the purchase money and closing costs, prepares the necessary documents for closing, ensures that the documents are executed properly and recorded in the public records as necessary, and then disburses the proceeds of sale to the seller after seeing that all closing costs are paid.  The closing agent will also inspect the legal title and certify to the lender and/or purchaser that they are receiving a good and sufficient legal title to the property. 

​Clearly, selling a house is harder than it looks. That is where qualified professionals can help you navigate a complex process while keeping your best interests in mind.

The Nursing Home Improvement and Accountability Act is a bill that was introduced in August which addresses common issues that nursing home staff and residents face, especially in the wake of COVID. Nearly 1 in 3 COVID-related deaths were connected to nursing homes, and more than 184,000 nursing home and long-term care residents and staff have died from the virus. The NHIAA is designed to improve staffing issues, quality, oversight of nursing home and long-term care facilities, require an infection preventionist to be working full-time, and improve transparency for residents and their families. Keep reading to learn about what the bill intends to do for seniors and staff:


1. Resolve Staffing Issues

The NHIAA will require all nursing homes to employ an “infection prevention and control specialist”—someone who controls and prevents the spread of diseases—and ensure that nurses are available 24 hours a day (currently nurses must be present only 8 hours a day). It also gives power to the Department of Health and Human Services (HHS) to study how many nurses and nursing assistants are needed in nursing homes to be able to provide quality care to residents. Then the HHS can also use that information to ensure that facilities are never understaffed.

2. Protect Seniors’ Legal Rights

Many nursing homes require applicants to sign an arbitration agreement before being admitted into the facility, which requires the residents and the facilities to resolve issues together instead of suing each other in court. The bill will protect seniors so that they won’t have to choose between long-term care and their right to sue their nursing home if they suffer during their car.

3. Ensure that Nursing Homes are Financially Stable

To ensure that nursing and long-term care facilities are financially secure, the bill requires that the post a bond of $500,000 to the HHS as an emergency fund. This bond ensures that there will always be money available in case of emergencies or unexpected circumstances, for example, if the facility must suddenly close or if it faces financial hardships. The HHS will also provide additional oversight to low-performing nursing homes to help improve their quality of care, infection control, and emergency preparedness.

4. Modernize the Physical Environments

​Facilities will receive help to upgrade their physical space for residents and staff. The NHIAA proposes to “enhance staff experience” and “promote evidence-based, patient-centered care for residents” to make nursing homes better places to live and work. There will also be a demonstration program which provides money to nursing homes so that they can invest in improving the facilities and raise workforce standards.


You can read more about the Nursing Home Improvement and Accountability Act here and read it in its entirety here.

If you are thinking about the future, you probably have a lot on your plate: How do I draft a will? What is a power of attorney? Why do I need to manage my assets? But, have you thought about nursing home care?

Probably not, because almost no one thinks they will have to live in a nursing home or that they will eventually need round-the-clock care. There is no debate that we all want to be independent and we all want to be able to take care of ourselves no matter what. However, despite our best efforts, it can be difficult to plan for emergency medical care or financial difficulty.

What do you do when you’ve promised your loved one that you’ll never place them in a home, but you’ve realized that you don’t have the skills to take care of them like a professional? It is a difficult decision for elders and families alike, so it is rare for anyone to even acknowledge that they will have to deal with these things.

Nonetheless, even though no one thinks they will even have to consider full-time care in a nursing home, but sometimes the unexpected happens and then you’re facing having to spend thousands of dollars a month while draining your savings and your children’s inheritance. These kinds of changes can be sudden, jarring, and scary.

Medicaid can help cover the costs of a nursing home if you have less than $2,000 in assets, but the reality is that most people funnel their life savings into monthly nursing home care until there is nothing left, and only then can Medicaid step in to help. Medicaid Estate Planning Attorneys have the specialized knowledge and training to avoid this outcome and help protect your future.

Medicaid Estate Planning can be a difficult field to navigate with complex laws and ever-changing policies, but with the help of an attorney, you do not have to make difficult decisions about long-term care by yourself. If you are already thinking about estate planning—the process of setting up legal protections for your money, assets, and property for yourself and the loved ones who will inherit from you—you also need to plan for long term care.

If you are not thinking about your future, you should start planning now. Medicaid Estate Planning attorneys can help you protect your money and property for yourself, your future, and your loved ones, while simultaneously helping you qualify for Medicaid financial assistance for nursing home care whenever you may need it.

August 21st was designated as Senior Citizen's Day by President Ronald Reagan in 1988. According to the U.S. Census Bureau, there were more than 54 million senior U.S. residents on July 1, 2019.

A day of celebration and recognizing the accomplishments of our more mature citizens. Take the day to show appreciation for all that they have done and have yet to do! 

Many people tend to overlook the real cost of a traffic ticket. Speeding or other traffic infractions are not always as simple as paying the fine. “Going with the flow of traffic” can lead to points on your driving record which can lead to higher insurance premiums for several years. Driving home from vacation and happen to miss that work zone sign? States have different point systems and can add points to your driving record for an out-of-state violation.

Many factors come into play with insurance premiums. Your driving record will not only affect your automobile insurance but life and health insurance as well.  Life insurers are worried about a high risk of auto fatalities.  According to eHealthinsurance.com some health insurers will deny coverage if you have had a DUI within the past 3-5 years. Insurance companies are less likely to penalize an individual with a clean driving record than someone with many citations, reckless driving or offenses where drugs or alcohol are involved.

How fast were you driving when you received the ticket? Speed is a major factor; rates will go up with the number of miles over the speed limit.

Under the age of 18? According to the Virginia DMV traffic offense convictions result in the following penalties:

• First conviction.  You must complete a driver safety clinic within 90 days or else DMV will suspend your driving privilege until you complete the course and pay a reinstatement fee.
• Second conviction.  The DMV will suspend your driving privilege for 90 days
• Third conviction.  The DMV will revoke your driving privilege for 1 year (or until you turn 18 years old, whichever is longer).

Consequences can be far more serious than paying a fine or taking a class. Reckless driving is considered a criminal charge and could be charged as a misdemeanor resulting in possible jail time.   Not only can these infractions stay on your Virginia driving record for 11 years but criminal charges can remain with you for a life time.   
We want our drivers to use more caution and drive more carefully. An article by U.S. News gives tips on how to reduce costs.

• Cooperate with law enforcement. Drivers who are polite and cooperate with the officer are far more likely to get a ticket reduced or dropped.
• Challenge the ticket. Especially if it’s a first infraction, it might be worth challenging the ticket or asking that the fine be reduced.
• Consider hiring a traffic lawyer. It is possible to get a ticket dropped but lawyers know what strategies work best. If you are out of state, it’s possible you may not even need to take time off to appear in court.
• Opt for traffic school. Some states allow you to sign up for traffic school to avoid point on your driving record for noncriminal moving violations. Although you pay for the cost of driver improvement course, it might be cheaper than paying a high insurance premium.
  

 
Drive safe bloggers!

When it comes to retirement, surveys of our aging population leave us with one resounding piece of advice:  Don’t underestimate how long you could live.  If you’re lucky enough to retire at age sixty-five, then it might not be unreasonable to expect that you could need to subside on your retirement savings for another thirty years.  A 2015 survey of octogenarians (people in their 80’s) by New York Life found that more than half of participants were not expecting to live as long as they had, leaving them wishing they had saved more money throughout their lives.

Americans are now living much longer lives than our grandparents did.  Our own longevity is increasing, while the longevity of Social Security is in doubt.  The 2015 Social Security Trustee’s annual report projected that the combined trust funds that help pay old age and disability benefits will run out by the year 2034.  That means the funds will dry up by the time today’s 48-year-olds reach full retirement age.

This projection doesn’t mean that retirement payments will stop completely in 2034.  It means that by that time, the funds won’t hold enough money to pay the retirement benefits fully; only about 75% of the benefits will be covered.  So what does that really mean for us?  It means that unless politicians act to adjust the current system, we may not be able to rely on Social Security getting us through our retirement years.  We like to think that Congress will act sooner rather than later to initiate a solution.  But for now, the current precarious position of Social Security forces us to think beyond “Plan A” and onto “Plans B, C and D.”
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Shockingly enough, over half of all American households nearing retirement age have absolutely no retirement savings.  So what provides most of the retirement income for about half of all seniors?  You guessed it:  Social Security.  If aging Americans can’t fully rely on Social Security to provide for us through retirement, then we need to think about financial planning, and the sooner the better.

More and more Americans do not have access to a retirement savings plan at their workplace.  While it’s clear that most of us are far more likely to save for retirement if we can do so out of our paychecks, there are still plenty of ways to save even if our employer doesn’t provide a 401(k) plan.  If you're planning for retirement, consider speaking with a financial adviser about funding an IRA or a Roth IRA.  An IRA, or an Individual Retirement Account, is a type of savings account geared toward retirement that offers a few tax advantages.  With traditional IRAs, you can defer paying income tax on up to $5,500 that you contribute.  Investors over age 50 can defer paying income tax on as much as $6,500.  You can defer to pay income tax while you invest your money in your IRA, but income tax will be due once you withdraw the money from the account.  A Roth IRA is slightly different, in that you do not get a tax deduction on your contributions, but you don’t pay any tax on the earnings and the withdrawals are tax-free when you’re ready to retire.

Another way to ensure you’re saving for retirement is to put aside your tax refunds every year.  Save them in an account promised for retirement.  In fact, by using IRS Form 8888, you can directly deposit your tax refund into a savings account, an investment account or an IRA.

If you have trouble saving your earnings, try setting up a direct deposit.  You can allocate a certain percentage of each of your paychecks to go into your retirement account.  That way, you can save passively and ensure your money is set aside in a safe place.  If you’re wondering how much you should set aside, most financial experts are now recommending saving 15% of your income for retirement.

If you are very close to retirement age already, consider delaying your Social Security benefit.  The older you are when you file for Social Security benefits, the greater your annual payment (up to age 70).
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Once you have your nest egg, no matter how big or how small that egg may be, the most important and urgent next step is to protect it.  Building your savings and failing to protect them is like storing your nest egg on the edge of a brick wall; Humpty Dumpty can fall at any time.  In our elder law practice we've witnessed this happen to many families.  Illness and injury send over half of all older adults into long-term care facilities.  Often, a person admitted into a long-term care facility, such as a nursing home, feels forced to spend down their savings and even sell their house to pay the bills.  With nursing homes costing well over $80,000 per year, it’s no wonder that most families find their savings drained within the first year.  Don’t let this happen to you.  With a little planning, you can protect your savings from the devastating costs of long-term care.  In fact, even if you or your loved one is already admitted into a nursing home, there are still steps you can take to protect whatever savings you have left.  We can help you protect your assets from the costs of long-term care and health crises.  Contact us for a free consultation.