In this Issue
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About Us
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The Traub Law Office is a Full Service Law Firm located at 8601 RR 2222.
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Andrew Traub is my name, and I want to help you ensure that your loved ones are taken care of. Call me at 343-2572 or email me.
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Free Initial Consultation
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Did you know that the Traub Law Office offers a free initial consultation?
Part of my dedication to my clients is ensuring that there is a good fit between you and I.
The purpose of the free initial consultation is for you to tell your story, learn about me,
and then we can decide whether we would work well together. There is no obligation on your part,
so why not schedule a free initial consultation today?
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Joke of the Month
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Toddler Property Laws
- If I like it, it's mine.
- If it's in my hand, it's mine.
- If I can take it from you, it's mine.
- If I had it a little while ago, it's mine.
- If it's mine, it must never appear to be yours in any way.
- If I'm doing or building something, all of the pieces are mine.
- If it looks just like mine, it's mine.
- If I think it's mine, it's mine.
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Free Family Protection Seminar
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Mark you calendars. I will be giving a free seminar on protecting your family's welfare on May 26th at Babies R Us (northwest corner of 183 and Mopaq) from 7 p.m. until 9 p.m.
Handouts and refreshments will be provided. Topics to be covered include:
- Why do you need a will or revocable trust.
- What is probate and how do you choose an executor.
- Choosing who will take care of your children if something happens to you.
- Controlling when will your children receive any property you leave them.
- How to chose between a will or revocable trust.
- What other documents do you need to ensure your family's well-being.
Please RSVP so I can ensure we have enough seating.
Andrew Traub
Trusts for the Disabled
When a family includes an individual who is disabled, a special trust or special trust provisions should be considered to protect the financial interests of that person. Of course, the term disability can have a wide range of meanings. Generally speaking, reference is to individuals who would not be able to care for themselves or whose interests would be better served by retaining control and management of the disabled person's inheritance or other assets in a trust.
In some cases, certain types of trusts are essential in order to preserve benefits the disabled person may be receiving. For example in the case of a person who is eligible for Supplemental Security Income (SSI) benefits, the receipt of an inheritance or personal injury award would immediately disqualify that person from benefits, but if these funds are instead placed in a special trust for the individual's benefit, he would not be disqualified.
Even if a person is not receiving government benefits but is under a guardianship or conservatorship because of his disability, the outright receipt of an inheritance or gift will cause unnecessary complications and fees. Again, fees, publicity, and often even the need for court supervision can be avoided by placing the person's inheritance or other funds in a trust with appropriate provisions.
While it is virtually impossible to suggest the exact provisions that should be placed in every trust for a disabled person, there are certain guidelines that, if followed by a competent practitioner, will help protect the funds and the beneficiary.
In the typical case of a family with a disabled child, a parent (or other relative) may want to provide for the disabled child on the parent's death. If the child is receiving or may in the future receive government benefits, an outright bequest to the child will disqualify the child from eligibility for benefits, which could be a very expensive loss. Instead, the parent can consider placing the child's share in a "supplemental needs trust" or a "fully discretionary trust."
A supplemental (or "special") needs trust (SNT) is an irrevocable trust for the benefit of the disabled person and the operative provision states that the trustee may make distributions only to or for the disabled person to provide for the needs of that person over and above the person's basic needs for food, clothing, and shelter. The reason for this is the government regulation providing that if a person on certain disability benefits (SSI) has unrestricted access to assets in a trust to the extent that such assets may be used for the person's basic needs and support, then those assets will be considered available to the person. Since the SSI program is a welfare program and eligibility is based on a lack of assets available to the individual to provide for his basic needs, if the trust assets are considered so available, then the individual could lose his eligibility. In order to eliminate the possibility of this happening, then, the trustee of the supplemental needs trust is actually prohibited, by the special provision, from making distributions for the beneficiary's basic needs.
Care must also be taken to ensure that the trust cannot be considered to be revocable by the beneficiary. Further, many SNTs have "self-destruct" provisions causing termination of the trust if the continued existence of the trust would cause the beneficiary to lose his government benefits. While the self-destruct provision is useful, the trust should not provide that on such a termination the assets will be distributed to the disabled beneficiary.
The problem with the typical supplemental needs trust is that it is fairly rigid in its operation and restrictions. With this in mind, a fully discretionary trust may be preferable.
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