ELDER LAW THE ART OF ELDER LAW For more than 30 years the elder law firm of Ronald Fatoullah & Associates has been providing New Yorkers with legal solutions that protect, relieve and endure for generations. Our dedicated attorneys are skilled in the art of giving legal advice and are accomplished in elder law, Medicaid eligibility, estate planning, trusts, estate mediation, wills, asset protection, guardianships, probate and most issues associated with the challenges of aging. Our distinguished reputation is based on a commitment to the highest ethical and professional standards and our core values of honesty, integrity, and excellence. “We won’t settle for anything less”. 26 APRIL, 2017 | WWW.QNS.COM | LEFRAK CITY COURIER 1-877- ELDER LAW 1-877-ESTATES Queens • Long Island • Manhattan • Brooklyn ATTORNEY ADVERTISING community health.” Th e fi rst bill introduced by Crowley 15-24. In NYC, an average of 2,375 people are diagnosed with HPV-related cancer are some of the most eff ective forms of reversible birth control. Due to high to improve maternal health and reduce maternal mortality. The Elder Law Minute TM Use Care When Making Distributions to an SNT Benefi ciary BY RONALD A. FATOULLAH, ESQ. AND EVA SCHWECHTER, J.D. One of the most important goals for people with disabilities is to preserve funds for the long-term, to help maintain a higher quality of life. A special needs trust is a vehicle that holds funds for the benefi t of a disabled individual, and is designed to supplement a benefi - ciary’s income so that he or she can continue his/her standard of living, without jeopardizing his/ her eligibility for public benefi ts, such as Supplemental Security Income (“SSI”). Th e trustee of the special needs trust can utilize trust funds to provide items and services for the benefi ciary. When serving as the trustee of a special needs trust, it is crucial to be careful when making distributions for the benefi t of the benefi ciary – distributions should not be made directly to the benefi ciary. Th is is particularly true if the benefi ciary receives SSI. Th e Social Security Administration (“SSA”) has strict rules regarding unearned income for SSI recipients, and a distribution made directly to a benefi ciary could potentially violate Social Security’s rules. If a distribution violates these rules, the SSA will treat the distribution as unearned income on behalf of the benefi ciary and reduce the benefi ciary’s income dollar-for-dollar aft er the fi rst $20 of the distribution. For example, a trustee cannot provide a cash reimbursement to a benefi ciary for a purchase the benefi ciary has made. Th is is true even if the benefi ciary has a receipt. If the trustee reimburses the benefi ciary directly, the reimbursement will be considered unearned income and the benefi - ciary’s SSI will be reduced dollar-for-dollar for the reimbursement. It should be noted that there are ways to make purchases for benefi ciaries that will not negatively aff ect the benefi ciary’s SSI benefi ts. Here are four examples of appropriate disbursements. Th e trustee can distribute the requested goods directly to the benefi ciary in person. For example, if a benefi ciary wants a specifi c item from a brick-and-mortar store, he can communicate that information to the trustee; the trustee would then go to the store, buy the item using trust funds, and deliver it directly to the benefi ciary. Th e benefi ciary would receive the goods quickly, and shipping costs would be avoided. One potential downside to the benefi ciary is the cost of having to compensate a professional trustee for the time spent purchasing and delivering the goods. Th e trustee can purchase services or goods with trust funds and have the goods or services delivered directly to the benefi ciary. For example, a trustee can purchase an item for the benefi ciary online and have the items shipped to the benefi ciary’s residence. Th is can be a very effi cient way to handle a benefi ciary’s request for an item. Th e trustee can also reimburse a third party who pays for a service. For example, a relative might pay for a benefi ciary to attend an event and the trustee can reimburse the relative for the cost of the benefi ciary’s ticket. In such cases, it is important to have documentation of the cost of the service and the date on which it was provided. In certain circumstances, the trustee can pay a benefi ciary’s credit card bills. It is important to note that this does not include debit cards, which are considered cash and should not be used. Credit cards off er a way for the trustee of a special needs trust to avoid giving the benefi ciary cash while allowing the benefi ciary more autonomy. However, there are additional restrictions for paying off a benefi ciary’s credit card bill, including not paying for food or shelter, and in the case of a Sole Benefi t Trust, not paying for goods or services that were used by other people. When used correctly, a Special Needs Trust can be an important tool for individuals with disabilities to ensure that they keep their government benefi ts while also enjoying a higher quality of life. Ronald A. Fatoullah, Esq. is the principal of Ronald Fatoullah & Associates, a law fi rm that concentrates in elder law, estate planning, Medicaid planning, guardianships, estate administration, trusts, wills, and real estate. Eva Schwechter is an associate with the fi rm. Th e law fi rm can be reached at 718-261-1700, 516-466-4422, or toll free at 1-877-ELDER-LAW or 1-877-ESTATES. Mr. Fatoullah is also a partner with Advice Period, a wealth management fi rm, and he can be reached at 424-256-7273. RONALD FATOULLAH ESQ, CELA*
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