What does PLAN do for the Family?
In the present, PLAN helps the family develop a comprehensive assessment
of their loved one’s future needs with an analysis of the resources
required to fulfill them. PLAN then executes and provides all the documents
necessary for the family to join PLAN’s “Special Needs
Trust”. A carefully selected financial institution becomes the
trustee via a Master Trust with PLAN and PLAN becomes the “proxy
parent” by contract. Once the Trust is funded, the financial
institution will provide all fiduciary accounting and investment management
responsibilities. PLAN becomes the ombudsman and friend of the beneficiary,
arranging and supervising the care and support as outlined in the family’s
needs assessment—while protecting and maximizing their government
benefits. PLAN also provides information for your attorney to complete
this part of your estate planning.
What is a Special Needs Trust?
A “Special Needs Trust” offers a legal estate planning means
to protect your relative's eligibility for government benefits, while
providing a method by which he or she can receive the care and financial
supplements a family wants to provide. Instead of leaving an inheritance
directly to your loved one, you place it into a “Special Needs
Trust” of which she or he is the beneficiary. Many well-intentioned
family members don't realize that when a person on disability receives
an inheritance of more than $2,000, they are disqualified from receiving
various federal entitlements such as SSI. With that loss, they may also
lose Medi-Cal eligibility. The person must spend the inheritance before
becoming re-eligible to apply for SSI and other federal benefits. With
the high cost of medical care and housing, few families have great enough
wealth to make these basic government entitlements unnecessary for their
loved one’s security. Public benefits are almost always vital for
a disabled person’s basic needs of food, shelter and clothing and
as a safety net for psychiatric and other medical care.
Why is PLAN necessary?
No institutional trustee can understand the very special needs of a person
with mental illness. Because of our experience as family members, PLAN
does. Our goal will always be to maximize your relative’s health
and quality of life--just as we would desire for our own loved ones.
PLAN acts as the “proxy parent” to the beneficiary, becoming
a friend and advocate acting in his or her best interest. We select,
direct and oversee the Personal Support Specialist (PSS) who will work directly
with your relative. PLAN is guided in its decision-making by the written
guidelines you provide in a “needs assessment” we do with
you when you set up the Special Needs Trust. But, PLAN is also authorized
to change direction in the event the person’s circumstances change
either through crisis or improvement. PLAN, and its trust, is meant
to last a lifetime.
Why shouldn’t I just use a sibling or friend
as the decision maker and trustee?
A trusted friend or a sibling can act as the decision maker or trustee.
But, lives change. Sometimes hard decisions must be made regarding the
beneficiary and many siblings would prefer to remain their brother’s
or sister’s friend rather than handling the responsibilities inherent
in managing a special needs trust. However, under a PLAN Special Needs
Trust, a sibling or friend can be appointed as either a co-trustee or
advisor who will be consulted on major shifts in the care and treatment
plan.
What things can a Special Needs Trust Provide without jeopardizing public
benefits?
A Special Needs Trust can provide the same supplemental services that
you as a family are most likely providing in the here-and-now. They may
include expanded housing opportunities, transportation to dental, medical
and psychiatric appointments, shopping trips and assistance, recreational
activities, educational finance, crisis intervention, additional care
giving/case management and-- frequently most importantly-- on-going social
contact and friendship. Strict rules apply as to how supplemental services,
financial help and gifts can be provided to an individual without endangering
his or her government benefits. Strategic decisions must occur to protect
the beneficiary’s eligibility for SSI. PLAN is expert in understanding
and working with these rules in order to maximize the benefits provided
to the person
Does a Third Party (Testamentary) Special Needs Trust “pay back” the
government after the beneficiary dies?
Trusts established by parents, relatives or friends are NOT required
to have a pay-back provision. The Grantor of this type of Special Needs
Trust can specify who will receive any remaining assets in the trust
in the event the beneficiary passes prior to the full Trust being utilized.
Okay, I want PLAN, but I’m not wealthy. How
can I fund a Special Needs Trust?
Actually, a Special Needs Trust is not for the wealthy who need not be
concerned with protecting government assets. A Special Needs Trust does
not have to be funded immediately. Once the family has enrolled in PLAN,
the Special Needs Trust can be made available for any member of your
extended family to enjoin should they wish to leave money or marketable
assets to your child upon their death. Many families fund the Special
Needs Trust with what they consider their loved one’s “share” in
the family home. Others purchase an insurance policy or direct their
retirement residuals to fund the Special Needs Trust after their death.
Can PLAN provide its services in the here and now?
In some areas of California, PLAN has Personal Support Specialists who
are able to serve PLAN families in the "here and now". Once
you have become an enrolled member of PLAN, PLAN will gladly refer
you to those contracted PLAN Personal Support Specialists. As a “Pay-As-You-Go” client,
you sign an agreement directly with the support specialist based on
the number of contact hours you wish to be spent with or on behalf
of your loved one. The Family directs the contractor. We provide counseling
and advice on how to successfully set up a “Pay-As-You-Go” PLAN.
And, PLAN is always available for “Pay-As-You-Go” families
if they hit a snag.
How do I join the PLAN of California Special Needs Trust?
You can enroll in PLAN at any time with a tax deductible contribution
of as little as $1000, which can be made in payments. Then, whenever
you are ready, you are entitled to all our member services including
utilizing our Pay-As-You-Go program, having us complete the Needs Assessment
with you, and enjoining our Master Trust. We will complete all the
documents you need to take to your attorney to enjoin your will or
living trust to our Master Trust.
What is the future of PLAN?
PLAN is expanding its services to assist families who can’t afford
to contract with a “Pay-As-You-Go” Personal Support Specialist,
but who need help in the here-and-now. The project called “Bridging
the Gaps” operates a free “help line” to counsel families
on how to maximize access to the public mental health system or crisis
intervention. Through it, we are also preparing fact sheets on issues such
as understanding the involuntary treatment process and the criminal justice
system, effectuating jail diversion, how to obtain housing and applying
for government benefits. We will refer these families to membership in
their local NAMI affiliates for continuing support and additional education.
PLAN is also building an endowment that will continue services for those
beneficiaries whose Special Needs Trust may have run out of funds. When
the Endowment is fully funded, we plan to expand our services to families
who have nothing to leave except their love.
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