The Connecticut Elder Law Blog

Beware Trustees of Special Needs Trusts...

If someone with special needs is a beneficiary of a special needs trust and is also receiving SSI (Supplemental Security Income) benefits then the Trustee of the trust must be very careful to not make any distributions that would jeopardize SSI eligibility.

One of the no-no's for the trustee is paying for "food" or "shelter".  If a special needs trust picks up the tab at the restaurant or covers the grocery bill then it may reduce or eliminate the SSI benefits.  Although food is allowed under certain circumstances, such as food provided during a "medical confinement".

There could also be SSI eligibility problems if the trustee uses trust funds to pay for shelter costs such as rent, heating fuel, gas, electricity, water, sewerage and garbage collection services.  Again, the "medical confinement" exception applies.

But don't confuse "shelter costs" with "home ownership".  It's OK for a special needs trust to owna house in which the SSI beneficiary lives.

By the way, the words "food" and "shelter" are usually accompanied by the word, "clothing".  But not in the world of SSI eligibility, as of 2005.  In other words, gifts of clothing to SSI beneficiaries are no longer a problem because it's not counted as income or in-kind support and maintenance.

Health Care Reform: Senate Bill Addresses Long-Term Care

While the concepts of the public option and universal coverage are stealing all of the headlines I'm doing my best to keep track of what the proposed Senate bill is saying about long-term care issues.  And so far, I like what I see.

First, there's the Community First Choice Option which I posted on earlier.  Since then the House bill has added a "statement of support" for this option.

The Senate bill also offers increased Medicaid funding for states that establish community services for individuals who would otherwise require institutionalization.

The bill also extends the "Money Follows the Person" project (which has been taken up by 31 states) for another five years.  This program provides incentives for states to transition Title 19 beneficiaries out of the nursing home and back into the community with appropriate services whenever possible.

All of this seems to point towards an encouraging trend; making it financially possible to keep our elderly in the community (or get them back there) if medically possible. 

So, if you're inclined to voice your opinion on this bill to one of your U.S. Senators, please keep these provisions in mind. 

Lawyer Joke!

Please enjoy your Friday lawyer joke...

Q:  What's the problem with lawyer jokes?

A:  Lawyers don't think they're funny and non-lawyers don't think they're jokes!

SSI Basics

Many of my clients get confused between SSI, SSDI, Social Security retirement benefits, etc.  And with good reason; the acronym "SS" makes the names of these benefits too similar (clients have the same problem distinguishing between "Medicaid" and "Medicare").

Supplemental Security Income (SSI) is very different from regular Social Security Retirement benefits since you don't have to be a certain age to obtain it.  If you are determined to be disabled to the point that you cannot earn enough income to meet your basic needs, regardless of your age, then Social Security Administration (SSA) will send you a cash payment each month which is designed to help you pay for food and shelter.

Another big difference between SSI and regular SS retirement benefits is that SSI has asset limitations that must be met, which are $2,000 for an individual and $3,000 for a couple.  Furthermore, your "countable" income will reduce your SSI benefit amount, which means that if you have more countable income than the benefit amount then you cannot get SSI.

SSA recently announced that the maximum monthly SSI benefit amount for 2010 will be $674 for an individual $1,011 for a married couple.  These are the same rates as 2009, so no cost-of-living-adjustment next year.

Some states, like Connecticut, add a "state supplement" amount to the federal benefit.  The Nutmeg State tacks on $168 for an individual and $275 for a couple.

SSI benefits keep coming until you are no longer disabled.  Your case can be reviewed occassionally, and if SSA believes that your condition may improve in the future then they will probably schedule periodic reviews.

You can get more detailed information at SSA's website.

A Surprise-Cost for Conservatorship Applications

If you're thinking about pursuing a conservatorship for a loved one in your local Connecticut Probate Court and you're trying to figure out how much the whole process is going to cost, don't forget to include a bill from your loved one's "court-appointed attorney".

Connecticut law says that whenever a conservatorship application is filed in regards to a presumably incapacitated person (known as the "respondent") then the Court has to appoint an attorney to represent that person to make sure that he/she has an advocate in the process.  That attorney is usually picked off of a list of attorneys with plenty of probate experience that the Court maintains.  This is assuming that the person doesn't have the mental capacity to go out and get his own attorney.

The attorney's job is to meet with his client, explain the conseratorship process, advise the client on how to proceed and then zealously advocate for whatever position the client ultimately takes.  In other words, it's just like any other attorney-client relationship...including the part about the attorney submitting a bill for legal services.

Most people are told up-front by the Court staff that there's a $150 application fee.  But the arrival of a bill from the Court-appointed attorney usually comes as a surprise.

Granted, it's probably not the biggest legal bill you'll ever receive.  For the time the attorney must spend in traveling to the client and having a consultation, drafting and submitting a report to the Court and then attending the hearing to appoint a conservator the bill may be in the $500 range, probably a little less.  That's what you can expect for a non-contested matter.  However, if the situation is more complicated because some family members are kicking off World War III over the conservatorship application, then the attorney will obviously have to spend more time on the file, which raises the legal fee.

In any case, you and the rest of the family will need to be prepared for the Court-appointed attorney's bill.  And the money to pay for that bill comes from the pocket of the presumably incapacitated person, unless he doesn't have the financial means to do so, in which case the attorney submits the bill to Probate Court Administration at a greatly-reduced hourly fee.