Category: Texas HHSC

Stimulus Checks for SSI Recipients

It was been a long wait, but for many of you the time has come and the federal stimulus checks have been deposited! Some of you who receive government benefits are still waiting and can clink on this link for more information.

For caregivers, guardians, adult children or parents of individuals who receive SSI benefits and are the representative payees (“rep payees”) on bank accounts, you may be concerned about the extra money in your loved one’s bank account and how this money will affect SSI eligibility. Here is some good news – the stimulus $1,200.00 will not affect SSI eligibility. The Social Security Administration (“SSA”) posted on their website that they
“will not consider economic impact payments as income for SSI recipients, and the payments are excluded from resources for 12 months.”

Some of you are Representative Payees for your loved ones want to know what you can do with the stimulus money. Well, SSA and IRS agree, the funds belong to the Social Security or SSI beneficiary. The stimulus funds are not a Social Security or SSI benefit. You as a representative payee should discuss the funds with your beneficiary. If your loved one is the beneficiary and he or she wants to use the funds, then you as the rep payee should give the stimulus funds to them. The rep payee does not have a responsibility connected to the stimulus funds because, as stated above, the funds are not Social Security or SSI benefits. You will not have to include the stimulus funds in your annual accounting.

The hardest part of all this may be in determining how to spend that money on the beneficiary.

Acquire Knowledge Here to Improve Your Child’s Life – Step One

You have found my article, but the Filis Law Firm website is not the only site you should look at as a reliable source of information for families with children with special needs. Continue your research. You have access to information, now what will you do with it?

Acquire knowledge and turn it into wisdom. You have at your fingertips information to assist you in maximizing the protection of your family. Now start doing something. You may already be taking some of these action steps, such as:

Protecting your child at school by attending Special Education ARD meetings and thoughtfully contributing to your child’s IEP.

Protecting your child’s future by getting him or her countless treatments from doctors and therapists that are designed to help to put your child on a better pathway to achieving life goals.

Protecting your family’s financial future by working with an attorney and a financial advisor for purposeful estate planning.

Filis Law Firm has a list of Action Steps designed to assist families with children with special needs. These Action Steps have been collected by Leona E. Filis, owner of Filis Law Firm, based on what Leona has discovered during her life journey with her son. We will publish one step at a time.

STEP ONE: Sign up your child with special needs on the Interest Lists for Medicaid Waiver Programs and look into other government benefits such as SSI, Medicaid, SSD, and Medicare. Take ten (10) minutes today and call 1-877-438-5658 to put your child on the Interest Lists.

Supplemental Needs Trust, When to Fund and Possible Taxes Consequences

Many parents with children with special needs consider adding a Supplemental Needs Trust (“SNT”) to their Estate Plan. Using a SNT to receive assets and money from a parent’s estate is how many parents try to avoid disqualifying their child from receiving government benefits. For Supplemental Security Income (“SSI”) eligibility, applicants must be a U.S. citizen or national (or one of the limited categories of aliens), and over 65 years old, blind, or disabled, with limited income and resources.

To keep the child’s income and resources low in non-existent for benefits qualification, selection of the appropriate Trust is crucial. There are three types of special needs trusts to options to evaluate.

Master Pooled – The Arc of Texas can offers their services for a Master Pooled Trust (click here for more info).

Another type of SNT is a 1st Party or Self-Settled SNT. This is typically used when a disabled individual receives a personal injury settlement or child support. The funds of the 1st Party SNT after termination are subject to a claim of reimbursement by Medicaid Estate Recovery Program (government payback).

The most commonly obtained SNT is a 3rd Party Supplemental Needs Trust. When setting up Estate Plans, parents of children with special needs can, in their Last Will and Testament, can provide for long-term care of their child by leaving inheritance to the Trustee of the 3rd Party SNT. The parents are both the settlors/grantors, and initial trustees.

Some individuals wish to avoid probate, but are unsure of how to fund their child’s SNT. Many parents turn to life insurance for financing the years of care their child will require after both parents have passed.

As a rule, you should coordinate between the attorney drafting the SNT, the agent writing up the life insurance policy, and your accountant or financial advisor who should determine whether the estate plan is advisable for tax purposes.

For most people, the SNT remains unfunded during the lives of the parents/settlors, and as the trustees, the parents have no responsibilities or owe any duties to the Trust.

QUESTION: Do you want to prohibit the SNT from owning life insurance on the life of the parents/settlor?

Yes. The SNT agreement should be written so that the Trust will not be allowed to own a life insurance on the life of the Settlor.

Question: If the 3rd Party SNT is funded, is it a Qualified Disability Trust?

To meet the criteria to be considered a Qualified Disability Trust (“QDisT”), the SNT must be irrevocable, for the sole benefit of the individual with a disability under the age of 65, whose disability is as defined for purposes of SSI and/or SSDI programs. Have your accountant look at the deemed exemption of $4,150. This exemption amount is allowed in full and is not subject to phaseout in 2025 under the Tax Cuts and Jobs Act of 2017.

Question: What is a grantor trust and what are the tax benefits?

A Grantor Trust, as defined by the Social Security Administration, is a !st Party or Self-Settled trust where the Grantor/Settlor is also the sole beneficiary of the trust.

Texas School Finance

Do you have a child in public school? Is your child receiving the best education possible? How is your child’s school campus? Are there enough qualified teachers, paraprofessionals, and therapists? What are your thoughts about tying school funds to STAR test results?

Now is the time to call, not email, your state senators and representatives and tell them your thoughts and concerns about your child’s education.

I had an opportunity at a Civil Association meeting January 15th to see SBISD Superindendent Muri and Minda Caesar, Trustee. At the meeting, we learned that the Bond passed November 2017 by voters provided $898.4 million to replace or improve schools in Spring Branch. Work towards new buildings, increased safety and security, and acquiring upgraded classroom equipment has already begun. For more details, click https://www.springbranchisd.com/about/bond-2017

What is going on in Austin regarding our 5.4 million Texas students? The 86th Texas Legislature begun this month and will continue until May 27th. The Houston Chronicle’s January 10th article “Texas House Speaker Bonnen makes the case to conservatives to beef up education funding” describes why we as Texans need to focus on our children’s educational needs. Although Texas has more high school seniors graduating, our fourth graders have difficulty in certain subjects, and dropped to No. 46 in national rankings for reading. Voice your opinion as to how this problem can be addressed.

We have a Texas Commission on Public School Finance who submitted a report in December last year with about thirty recommended improvements. Both the House and Senate have their proposals, including a pay raise for teachers. I encourage parents to read about the proposals and call your representatives. As of January 16, 2019, the Texas House and Senate are about $3 billion apart on proposals for public education spending.

Contact John Cornyn’s DC office at 202-224-2934; Ted Cruz’s DC office at 202-224-5922 and look at https://www.govtrack.us/congress/members/TX#representatives

for more information to find your Representative and their phone number.

Study Up on THHSC Programs That Support Individuals with Special Needs

For all the new parents of babies and toddlers diagnosed with chronic illness or a disability such as Autism, one of the first things you should do is sign your child up for support and services with your  State and local authority. Years ago, for my child, I contacted the Department of Aging and Disabilities (DADS, now see Texas Health and Human Services Commission) and Mental Health and Mental Retardation Authority (MHMRA, now known as Harris Center).

 

Client Education 

 

My first reaction to receiving information about the Interest Lists for Medicaid Waiver Programs was one of disappointment.

I was certain that my household income would disqualify my son for benefits. I was wrong. The requirement for low or no income that you typically associate with Medicaid is waived for most of these programs.

If you have not already done so, please call 1-877-438-5658 to add your child to the Medically Dependent Children’s Program (MDCD) and Community Living Assistance and Support Services (CLASS) Interest Lists.

For those of our parents whose kids have spent a couple of days in a nursing facility, and is medically fragile, you may wish to look into the MDCP Rider 28 if your child is returning home. Talk to your child’s doctor about Form 2406, Physician Recommendation for Length of Stay in a Nursing Facility.

For more information, contact The Filis Law Firm at 713-462-1777 or search for Medicaid Waiver Programs on the Houston Special Needs Attorneys website.

New ABLE / 529 A Account Tax Benefits

To Parents with Children with Special Needs – Have you opened your child’s ABLE savings account yet? Is your child working?

The IRS released the following at https://www.irs.gov/newsroom/irs-reminds-those-with-disabilities-of-new-able-account-benefits

WASHINGTON — The Internal Revenue Service wants to remind those with disabilities that the Tax Cuts and Jobs Act (2017) made major changes to Achieving a Better Life Experience (ABLE) accounts. Eligible individuals may now put more money into their ABLE account and also roll money from their qualified tuition programs (529 plans) into their ABLE accounts. And certain contributions made to ABLE accounts by low- and moderate-income workers may now qualify for the Saver’s Credit.

ABLE accounts are designed to help people with disabilities and their families save and pay for disability-related expenses. Though contributions are not deductible, distributions, including earnings, are tax-free to the designated beneficiary if used to pay qualified disability expenses. These expenses can include housing, education, transportation, health, prevention and wellness, employment training and support, assistive technology and personal support services and other disability-related expenses.

Normally, contributions totaling up to the annual gift-tax exclusion amount, currently $15,000, may be made to an ABLE account each year for the benefit of an eligible person with a disability, known as a designated beneficiary. Starting in 2018, if the beneficiary works, the beneficiary can also contribute part, or all, of their income to their ABLE account.

This additional contribution is limited to the poverty-line amount for a one-person household. For 2018, this amount is $12,140 in the continental U.S., $13,960 in Hawaii and $15,180 in Alaska. The designated beneficiary is not, however, eligible to make this additional contribution if their employer contributes to a workplace retirement plan on their behalf.

Also starting in 2018, ABLE account beneficiaries can qualify for the Saver’s Credit based on contributions they make to their ABLE accounts. Up to $2,000 of these contributions may qualify for this special credit designed to help low- and moderate-income workers. Claimed on Form 8880, Credit for Qualified Retirement Savings Contributions, this credit can reduce the amount of tax a person owes or increase their refund.

Finally, some funds may now be rolled into an ABLE account from the designated beneficiary’s own 529 plan or from the 529 plan of certain family members.

For more information about ABLE accounts and other tax reform changes visit IRS.gov/taxreform.

Keep the Family Home in the Family

Are one or both of your parents in need of more assistance with daily activities than what they are receiving in their home?

Nursing homes and assisted living facilities can be expensive, but the government helps those in need with Medicaid benefits. A problem many people face with Medicaid is that they are ineligible due to having too much money and too many assets.

For many retirees, qualifying for Medicaid to pay for nursing care appears to be impossible.

As their child, it may seem like this is a hopeless situation and quite unfair to have your parents lose everything they worked hard for over the past few decades to try to qualify for Medicaid.

MERP is the Medicaid Estate Recovery Program. MERP can only recover from assets that pass through probate. Both a Ladybird Deed and Transfer on Death Deed pass property outside probate.

Estate and Medicaid planning can be accomplished to keep your hard-earned assets in the family. Contact our office for more information.

CHIP Health Plan for Working Families

Do you earn too much money to be eligible for Medicaid, but not enough money to pay for private health insurance for your kids? Based on certain income requirements, kids and pregnant women may be qualified for the Children’s Health Insurance Program (“CHIP”). Currently, there are approximately 400,00 Texas kids and pregnant women enrolled in CHIP. Health care services in Texas include prescriptions and post-partum care.

CHIP was created in 1997. Texas adopted the program a couple of years later and since then, over one million children have been enrolled in the health insurance plan and able to obtain proper medical treatment.  For a child to be eligible for CHIP, a family of two can earn income up to 200% of the federal poverty level, around $32,000 a year or $2,666 a month.  According to a July 2017 article in the Business Insider, the average monthly rent for a 2-bedroom apartment in Houston, Texas is $1,088.  After paying rent, there is not much money to cover food, clothing, utilities and transportation, much less private health insurance premiums. CHIP is crucial for low-income working-class families.

On September 30, 2017, Congress failed to renew the authorization for CHIP funding. There is limited hope that six months worth of federal CHIP funding may be authorized prior to the holiday break, however, this would cover October 2017 through March 2018.  If Congress fails to authorize temporary funding, states will fund CHIP without their federal partner.  According to recent reports, Texas only has funds to keep CHIP active until February 2018 in the event the federal government chooses to discontinue the program.

Tired of Being Denied Government Services – Sign Your Child Up For Medicaid Waiver Programs

Texas Department of Aging and Disabilities (“DADS”) was the agency that, for many years, parents with children with disabilities reached out to for government assistance of support and services. Texas programs were administered by DADS until its abolition on September 1, 2017.

The Texas Health and Human Services Commission (“HHS”) is now charged with protecting vulnerable Texans. HHS administers programs formally serviced by DADS, including:

Community Living Assistance and Support Services (“CLASS“)

Deaf Blind with Multiple Disabilities (“DBMD“)

Home and Community-based Services (“HCS“)

Medically Dependent Children’s Program (“MDCP“)

A common complaint I hear from parents who are in search of help from the government is that their family fails to qualify for support due to household income.  Although income is not necessarily a factor for eligibility for benefits from these Medicaid Waiver programs, waiting on an interest list for can take years.

 

As of July 31, 2017, tens of thousand of Texans are on interest lists. HCS has 86,989 people on its interest list, CLASS has 61,926 people on its interest list, and MDPC has 18,867 people on its interest lists.  Parents should contact HHS and their local benefits provider, such as the Harris Center, to begin the application process.

https://hhs.texas.gov/about-hhs/records-statistics/interest-list-reduction