Resources
Estate Planning Weekly COVID-19 Update – 10.21.20
This weekly COVID-19 update is brought to you by our Chambliss Estate Planning team. We are sharing articles, legal developments, external resources, and tips for coping during these uncertain times. Each weekly issue will cover various trends of vital interest in the world of estate planning, elder law, and special needs planning. To be added to our email list, please subscribe.
Webinar Recording Now Available
Dana and Greg recently hosted the webinar Exploring Solutions to Address Potential Tax Law Changes. If you missed the webinar on October 7, or would like a copy of the recording, you can access it on GoToWebinar’s website.
The following topics were discussed:
- Details of the Spousal Lifetime Access Trust (SLAT)
- Advantages and disadvantages of having a SLAT
- Importance of beginning the SLAT planning process ASAP, prior to the November election
- Exploring possible estate and gift tax exemptions based on which candidate wins the presidential election
- Answers to your specific questions
Watch the webinar now on GoToWebinar’s website.
Featured Article
Navigating Life’s Twists and Turns
By: Jennifer Exum
I recently met with two brothers whose sister had died suddenly. Still dealing with their grief, the brothers were further confused by the probate process and how their sister’s estate would ultimately be distributed to them. We discussed the twists and turns that estate administration can entail, but I stopped when one of the brothers mentioned that he receives disability benefits.
Knowing that a person on benefits can be disqualified by an inheritance, I took some time to educate the brothers on what could – and could not – pass directly to a person with a disability. Aside from an interest in the house where the brother with a disability lived, he could not receive any financial assets from his sister’s estate without jeopardizing the disability benefits he needed.
This led to a discussion of first-party supplemental needs trusts, which are also called “(d)(4)(a) trusts” after the code section which allows them. A first-party supplemental needs trust is created by a person with a disability to hold assets on his/her behalf that would otherwise disqualify a person with a disability from needs-based benefits. The person with a disability creates this trust and names another individual, not themselves, to serve as trustee. Once assets are added to this trust, the person can receive those trust funds to supplement what his or her benefits provide, but the trust assets cannot be used to pay for those same services.
As we discussed this option, the brother felt a sense of relief. He would be able to inherit from his sister while retaining the disability benefits he needed. He would name his brother as trustee and was confident that he would manage those funds for his benefit, so they would be a blessing as their sister had intended.
While the prospect of putting his inheritance in a trust may have been daunting at first, my client was comforted that he would be able to enjoy his inheritance to supplement a variety of his needs and wants that are not covered by his disability benefits. For a list of the types of expenses that may be paid using assets in a supplemental needs trust, please click “Read More” below.
While it is difficult to anticipate every twist and turn that life may bring, as experienced estate administration and estate planning attorneys, we do our best to spot and address potential problems before they result in negative consequences for our clients. In this recent example, we were able to identify a serious planning issue for one of our clients in the midst of a meeting about his sister’s estate administration. With a little planning for this client with a disability, he can now enjoy his inheritance without any disruption of his benefits.
Estate Planning Resources
Medicare Open Enrollment Starts October 15: Is It Time to Change Plans?
Medicare’s Open Enrollment Period, during which you can freely enroll in or switch plans, runs from October 15 to December 7. Now is the time to start shopping around to see whether your current choices are still the best ones for you…
What Happens to Assets Left in a Special Needs Trust on the Death of the Beneficiary?
By their very nature, special needs trusts (SNTs) are usually designed to terminate, or at least radically change, when the trust’s primary beneficiary dies. But terminating a special needs trust is not as simple as merely writing a check to the remainder beneficiaries and calling it a day. There are several key considerations and requirements to keep in mind…
Also Check Out…
COVID-19 Vaccine Rollout Could Leave People With Disabilities Behind
With plans now in the works for distributing a coronavirus vaccine, there are worries that despite the high risk they face, people with developmental disabilities may not be given priority. Read more on the Disability Scoop website.
Tennessee COVID-19 Hospitalizations Reach All Time High
Tennessee has reached an all-time high for COVID-19 hospitalizations. There are currently 1,259 hospitalizations of people with confirmed COVID-19 cases , according to the Tennessee Department of Health. There are another 165 people in the hospital with possible cases. Click here to read more.
Palliative Care Team Helped COVID-19 Patients Avoid Unwanted Tx
When a COVID-19 palliative care team intervened in the emergency department to speak with older, severely ill patients, most of them or their surrogates chose not to go ahead with the full complement of life-sustaining tactics. Clinicians enlisted a COVID-19 palliative care response team to provide these conversations. Click here to read more.
PrepareForYourCare.org Uses Program to Help Families Plan for Their Futures
Prepare for Your Care is helping individuals develop a plan regarding medical decisions for themselves and others. Click here to see the five-step brochure that can help serve as guidance for creating a personal care plan.
Coping With COVID-19
Zoom in With the UTC Occupational Therapy Program – Fall Program Series
The Therapeutic Recreation Division of the Chattanooga Youth and Family Development Department is partnering with the University of Tennessee Chattanooga Occupational Therapy program to host several different virtual programs this fall. TR staff will be present at each Zoom meeting to help answer any questions you may have. Registration is required. For full details on the programs offered, view their October newsletter.
Fall Scavenger Hunt Crafts – Oct. 21
- What: Gather supplies for this interactive fall craft session! Bring your findings to the meeting to be led in artsy, woodsy craft creations. Family involvement encouraged as needed.
- Who: All ages! – Individuals with intellectual and/or physical disabilities and their siblings – family night encouraged!
- Time: 5-6 PM
- Contact: eadams@chattanooga.gov | 423.667.5214
Chair Yoga – Oct. 22
- What: Join the OT team to learn more about yoga! During this interactive class, you will learn basic chair yoga poses that you can do on your own and add to your current exercise routine.
- Who: Ages 13+, Individuals with intellectual and/or physical disabilities and their siblings
- Time: 4:30-5:30 PM
- Contact: mtbrickey@chattanooga.gov | 360.431.1717
Pizza Party – Oct. 28
- What: It’s a make your own pizza party! Learn the basics of making pizza, enjoy friends, play games, and share a virtual pizza dinner. Share your favorite toppings and bring your appetite!
- Who: All ages! – Individuals with intellectual and/or physical disabilities and their siblings – family night encouraged!
- Time: 5:30-6:30 PM
- Contact: mtbrickey@chattanooga.gov | 360.431.1717
Halloween Party – Oct. 29
- What: This Halloween party will be filled with pumpkin decorating, dancing, costumes, and fun! Participants are encouraged to dress up and bring a pumpkin (or paper) of any size to decorate.
- Who: All Ages! – Individuals with intellectual and/or physical disabilities and their siblings – family night encouraged!
- Time: 6-7 PM
- Contact: eadams@chattanooga.gov | 423.667.5214
Source: Chattanooga Therapeutic Recreation Services
Our Chambliss team continues to monitor legal developments in connection with the COVID-19 pandemic. Please contact Jim Catanzaro, Justin Furrow, or your relationship attorney if you have questions or need additional information.
