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Estate Planning – Protecting the Future Interests of Those You Love

Planning for the future of your loved ones in the event of your death is generally a difficult topic for many. Unfortunately, those of us who have family members with disabilities cannot afford to ignore estate planning. Many hours of hard work by parents and caregivers go into the qualification process for government benefits for our disabled children and relatives. Twenty-page forms to fill out and hour-long calls with multiple agencies are just a couple of examples of what parents endure to obtain essential benefits for their children. Rules for eligibility for State Waiver programs, SSI and Medicaid are confusing.

What parents, family members, and close friends do not want to see happen is the disqualification of eligibility of benefits. To avoid possible disqualification of benefits, I have seen grandparents attempt to do the right thing and disinherit certain grandchildren, out of love and out of a misguided attempt to protect their loved ones with disabilities from losing benefits. The law provides a better way to protect your loved one’s eligibility for benefits through Special Needs Trusts (“SNT”).

Special Needs Trusts can offer protection of assets and income. Special Needs Trusts allow friends and families to enhance the quality of life of a special needs beneficiary.

“Income” for most public benefits agencies is defined as:

(a) actual cash distributions to the individual, and
(b) distributions that could be converted to food and shelter, and
(c) in-kind support and maintenance.

The more practical trust that is utilized is a 3rd party Special Needs Trust. Parents and grandparents who leave an inheritance to a child with a disability will

(a) create a 3rd Party Special Needs Trust,
(b) obtain a Taxpayer ID Number from the IRs, and
(c) draft a Last Will and Testament naming the trustee of the SNT as the beneficiary.

If you do not have a Will, Texas Intestate Succession law could distribute your estate directly to your child, thus creating another scenario where government benefits could terminate.

Another “funding” source for a Special Needs Trust – If you or someone you know is anticipating the eventual relocation to a nursing home, applicants should review eligibility laws of the Texas Medicaid Program. The state has a “look back” period of 5 years to review transactions that may have been made to spend down an estate to reach eligibility for Medicaid. Many transfers of income and assets can subject the Medicaid beneficiary or applicant to a transfer penalty. There are certain transfers of assets that are not subject to penalty such as contributions to a Special Needs Trusts for a person under the age of 65 with a permanent and total disability. Another transfer example is payment to an attorney for estate planning.

Contact The Filis Law Firm for more information on Estate Planning that will be most suitable for you and your family.

Special Education in 2017

The U.S. Supreme Court heard oral arguments in the Endrew F. v. Douglas County School District on January 11, 2017 (official transcript). The issue before the court is “What is the level of educational benefit that school districts must confer on children with disabilities to provide then with the free appropriate public education guaranteed by the Individuals with Disabilities Education Act.”

Individuals with Disabilities Education Act (“IDEA”) passed in 1975, subsequently reauthorized and amended twice in 1997 and 2004, as the federal education law to provide a free appropriate public education (“FAPE”) to students who receive special education. In 1982, the U.S. Supreme Court interpreted the FAPE requirement in IDEA to mean schools must provide “some educational benefit” to their students with disabilities. Since then, IDEA has been amended to include the No Child Left Behind Act (“NCLB”). Further, the Americans with Disabilities Act (“ADA”) passed in 1990. The evolution of protections for our population of individuals with disabilities continues to address the needs of a growing segment of our population.

An attorney for the Petitioner, Jeff Fisher, argued to the Court that IDEA requires “for the school to provide instruction and related services to the child that are reasonably calculated to provide substantially equal educational opportunities.” Irv Gornstein for the Department of Education of the United States, argues in support of the Petitioner for a formulation that is “reasonably calculated to make progress that is appropriate in light of the child’s circumstances.”

In the event the Supreme Court rules in favor of Endrew F., there will be a substantive standard in states to provide a higher, meaningful education to children with special needs.

Later this month, the executive branch of the government will be headed by President-elect Donald Trump. Trump has picked Senator Jeff Sessions to serve as his Attorney General. In order to help predict future actions, we should visit the past. In May 2000, on the senate floor, Jeff Sessions stated “We have created a complex system of federal regulations and laws that have created lawsuit after lawsuit, special treatment for certain children, and that are a big factor in accelerating the decline in civility and discipline in classrooms all over America.” Sessions’ full statement is available on his website.

For more information on the Endrew F. case, click here for an Understood video interview Jack Robinson, an attorney for the parents of Endrew F.

Repeal of the Affordable Care Act

Many families with children with special needs received benefits in health care coverage due to several provisions of the Affordable Care Act (“ACA”).

Such provisions include:

  • Allowing adult children, up to the age of twenty-six, to be included in their parents’ health insurance policies;
  • Prohibiting health insurance companies from imposing a waiting period for coverage of a pre-existing condition;
  • Having a cap on out-of-pocket medical costs each year;
  • Prohibiting employer plans from including lifetime limits to coverage; and
  • Expanding Medicaid eligibility based on income to 138 percent of the Federal Poverty Level in states that chose to implement the expansion. Applicants who qualify for Medicaid benefits based on this expansion could start receiving benefits while waiting for eligibility based on a disability.

What are the changes taking place now? The Congressional Budget Act of 1974 allows for the expedited consideration of mandatory spending legislation. Recently, the U. S. Senate voted to approve a budget blueprint, by way of a reconciliation bill, to allow the removal of significant components of the ACA, without the interference of a filibuster. The U. S. House of Representative voted to approve a budget blueprint as well. A repeal to reform Medicaid is supported by many in congress.

To date a comprehensive reform bill has not been provided for review. President-elect Donald Trump has expressed approval for a couple of aspects of the ACA, such as the inability of insurer to deny coverage for people with pre-existing health conditions and allowing children to stay on their parents’ insurance policies longer. President-elect Trump’s ultimate goal is to repeal the ACA and replace it with a plan essentially simultaneously. Trump proposes his plan will provide “insurance for everybody” and that pharmaceutical companies are “politically protected but not anymore.”

Unfortunately, one cannot predict whether the two ACA mandates approved by Trump will ultimately be a part of TrumpCare. House Republicans have a Better Way plan that promises to protect patients with pre-existing conditions and allow dependents up to age twenty-six to stay on their parents’ health insurance plans.

Parents of children with special needs have valid concerns if the ACA is repealed. Will their children, especially those over eighteen years old, with pre-existing medical conditions have private health insurance? If not, will Medicaid be an option and if so, how long is the wait for eligibility for benefits?

Thanksgiving – Perfect Time to Select Your Key People

During the upcoming Thanksgiving festivities, when your family and friends gather for hours in a cozy family home or two homes, consider that this time offers you a remarkable opportunity to determine who your key people will be in your legal documents. Who are key people – these are the people who you chose to have as your independent executor, trustee, and attorney-in-fact. If you are married, it is likely that your first choice is your spouse; however, you should have alternates listed on all your personal legal documents.

I am not suggesting you make your family holiday gathering more awkward than it typically is every year. My proposal is that you silently observe your siblings, their spouses and kids, and how everyone interacts with your child/children from the perspective of a parent removed from the situation. Siblings are not the only candidates for the role of key people. Outside of your immediate family, there are cousins and family friends to consider. Parents to choose key people candidates near their age or younger.

Thinking of your possible untimely death or disability may seem morose; however, your Will, Power of Attorney (“POA”), and Medical Power of Attorney (“Medical POA”) are legal documents in which you designate in writing people you trust to make important decisions about your child/children, your finances, your bank accounts, and vital medical decisions.

The key people you should be looking for are people that can naturally offer patience to raise your child or children in the event they become orphans. The selected key person to raise your children may not be the same key person who you select to be your “attorney-in-fact” in your POA. The key person you choose to handle your finances may not be the key person you select to make end-of-life decisions in your Medical POA.

Look on www.filislaw.com for the Will Packet prior to scheduling an appointment for a consultation.

It is IEP Season

Getting prepared for your next ARD meeting can be challenging.

Here are some Frequently Asked Questions pertaining to IEPs and ARDs that I have received the last couple of weeks.

Can parents request information of teachers’ and paraprofessionals’ qualifications?

Changes per the TEA beginning with the 2016-2017 school year –  the schools and teachers only need to meet the state requirements for certification.  Paraprofessionals must still meet the highly qualified requirements under No Child Left Behind for the 2016-2017 school year.

Once at the ARD meeting, can I postpone?

You can request more time or disagree and ask to recess and reconvene within ten school days. Review and if you agree, sign the IEP by the deadline. You can ask for a Facilitated IEP. If both parents and school agree, a trained person assists in getting people to reach an agreement. If the ARD committee cannot reach a mutual agreement, parents are allowed to write your own statement of disagreement.

What if I do not agree to the content of the Evaluation or Reevaluation Report?

Request the evaluation report in advance of the ARD.  Request clarification if the evaluation report is vague. If parents do not agree with the results of the school’s evaluation or reevaluation, parents may request an Independent Educational Evaluation (IEE).  The school has the option of (1) paying for the IEE or (2) requesting a due process hearing to prove the appropriateness of the evaluation.

How do we request a paraprofessional?

Structure your request for a dedicated paraprofessional by answering Who, When and Why for your child’s needs.

Who –  Paraprofessionals in Texas public schools this school year must meet the federal definition. Do not allow “aide” to be used as a substitute for the “paraprofessional” in the IEP.  When – Throughout the entire school day, specific classes or times of day, or only transitions. Why – Behavior management, activities of daily living, social skills, instructional support.

 

Feel free to send me more Special Education questions at leona@filislaw.com.

 

Special Education case before the U.S. Supreme Court

The U. S. Supreme Court will decide what is the standard of education public schools must provide to students with disabilities.  Specifically, the dispute is about the intention in the Individuals with Disabilities Education Act (“IDEA”) for the level of education public schools must offer.

In 1982, the U. S. Supreme Court stated that IDEA contains no “substantial standard prescribing the level of education to be accorded handicapped children.” Board of Education of Hendrick Hudson Cen. Sch. Dist. v. Rowley, 458 U.S. 176, 189 (1982). Due to Rowley, the Supreme Court allows States to provide a program “reasonably calculated to enable the child to receive education benefits” then it “has complied with the obligations imposed by Congress and the courts can require no more.” Rowley at 206-207.

Should IDEA be interpreted to demand school districts to provide a “substantial” education or merely make an effort to educate children? Cases from various Courts of Appeals conflict with their interpretation of IDEA.

Endrew F. is a minor child with autism whose parents filed suit against the Douglas County School District.  Individualized Education Program (“IEP”) is a legal document containing written statements regarding the student’s education program.    Endrew F.’s parents objected to the District’s offering of substantially similar IEPs year after year and not the achieving the level of education that meets an appropriate standard for Free Appropriate Public Education (“FAPE”).

Oral arguments before the Supreme Court are scheduled for mid-January.

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