There are nearly 58 million people in America that identified as differently-abled.  This makes them the largest minority group by far.  Every year when the holiday season comes near most of us start to think of ways that we can give back to those that are not as fortunate as we are.  Most of us have a family member that struggles do to a disability of some kind.  We often have clients that might see an opportunity while going through the estate planning process to include their differently-abled family member in order to make their life a little bit easier, but should we steer our client away from doing so?

When a client lists heirs are you asking the right questions?  If a client is wanting to leave part or all of their estate to a differently-abled family member there are a lot of factors you have to take into account.  Most of the time the family member is receiving some type of disability payment already such as social security disability.  They are also most likely receiving Medicare and if they are single could be qualified for Medicaid and the often forgotten Medicaid Extra Help Program.  When receiving social security disability the individual is given an amount that they are allowed to make based on their job history before qualifying for SSDI.  This is just one reason that any direct payment that the client would want to make should be re-advised.

Medicaid recipients are also limited to a cap of $2000 in their bank accounts in most cases and run the risk of losing benefits if this amount goes over.  Most states now have what is called a Medicare Waiver Program.  Each state’s waiver programs are different, but all are based on income, physical needs, mental support needs, and some also include property in determining eligibility.  If a client were to leave a waiver program recipient a gift, the recipient would most likely lose their place on the waiver program.  Waiver programs take about 3-5 years to receive a spot in states like Georgia or 10-12 years in states like Kentucky.  For this reason when a client wants to leave all or part of their estate to a differently-abled child or adult explain why a trust is the best way they can help their family member.  As stated before, SSDI does allow a differently-abled person to make a set amount a month, so the trust can be made accordingly.  Make sure  that you know all of the programs that recipient is enrolled in so the parameters can be met.