Do You Have Dependent Family Members Who Have Disabilities?
Did you know that naming an individual with disabilities in your will could cause him or her to lose Medicaid or Supplemental Security Income (SSI) benefits?
Governmental assistance benefits also are in jeopardy if the individual with disabilities receives a lump sum of money, such as from a personal injury settlement, back payment from Social Security or even lottery winnings.Thanks to The Disability Foundation, a supporting organization of The Dayton Foundation, you can help ensure a good quality of life for your disabled loved one and not have to make the difficult decision to disinherit him or her or risk jeopardizing important entitlements.
HOW THE DISABILITY FOUNDATION WORKSThe Disability Foundation administers the Ohio Community Pooled Annuity Trust, a safe and affordable planning option for individuals with disabilities and their families.
Through the Trust, a parent, grandparent, legal guardian or an individual with disabilities can establish an account that will provide a lifetime plan of payments to support an individual's supplemental needs, without risking Medicaid or SSI benefits.
By contributing cash or other assets into the Trust, a charitable gift annuity is created for the benefit of the individual with disabilities. The annuity generates a lifetime plan of fixed, monthly payments, which are deposited into a spending account. The money in the account can be spent quarterly or accumulated for a future activity.
While the Trust cannot be used for an individual's basic necessities (i.e., food, clothing or shelter), it can provide for the "extras" in life, such as travel, hobbies, pets, recreation, or medical equipment and services not covered by Medicaid.
Assets held in the Trust are not counted for Medicaid or SSI purposes, so long as the monthly payments are used for the individual's supplemental needs. The monthly payment amount is calculated when the account is funded and is based upon the value of the assets transferred, the age of the individual with disabilities and charitable gift annuity rates at that time.
By designating a personal representative to oversee the account, a family has peace of mind that their loved one's best interests are being looked after now and in the future.
An account can be established in the Trust to supplement the individual's needs immediately, or it can be deferred and funded through an estate plan.
Best of all, there is no initial fee for establishing an account, and no annual maintenance fees are charged. Plus, each account is considered a general obligation of The Dayton Foundation, and all payments are backed by the assets of both The Dayton Foundation and The Disability Foundation.
For more information, please visit The Disability Foundation website at www.disability-foundation.org.
HELPFUL EXAMPLESTo illustrate how The Disability Foundation can help families provide for the future care and happiness of their loved ones with disabilities, take a look at these two examples:
Transferring a disabled individual's inheritance to help him pursue his hobbies and, one day, take the trip of his dreams
Establishing a deferred charitable gift annuity to continue a child's favorite activities, long after her parents have passed away
"To learn more about The Disability Foundation, including current and estate charitable tax benefits, and how the foundation can help you and your loved one with disabilities, call me, Kevin Hayde, executive director of The Disability Foundation, at (937) 225-9939. I'll be happy to talk to you or your attorney or other advisor about this planning option or other resources that might be available for your family."
Click here to access The Dayton Foundation's Summer 2012 issue of Good News, featuring an article on The Disability Foundation, "Providing Life's Little Extras."
Click here to access The Dayton Foundation's Spring 2010 issue of Futures, featuring Kevin Hayde discussing "The Ohio Community Pooled Trusts Are Helping to Aid People with Disabilities."
Click here to access The Dayton Foundation's Winter 2006 issue of Futures, featuring Jesse B. Beasley, Esq., Certified Elder Law Attorney, discussing "The Ohio Community Pooled Flexible-Spending Trust: A New Option for Loved Ones with Disabilities."
For a listing of The Disability Foundation's Board Members, click here.
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File date: 10-17-2012