The Estate Planning Law Group

Who to Put in Charge of Your Child's Special Needs Trust

If you haven't decided yet who to put in charge of your child's special needs trust, here's some guidance to help you decide.

During your life, you can be in charge of your child's trust. The job is pretty easy because there's usually not much to do. Most special needs trusts don't hold any money until after someone dies - most likely the parents. If there is no money owned by the trust, the trustee doesn't have to do anything. As a parent, you are a trustee in name only.

In some cases, parents will make gifts to their child's special needs trust during the parents' lifetime, but such gifts usually make sense only if the parents' estate is likely to be subject to estate tax. If you need to reduce the size of your estate because of estate tax, there are often better ways of reducing the size of your estate than making so-called annual exclusion gifts to a special needs trust. Annual exclusion gifts to a life insurance trust that pays out to a special needs trust lets your child end up with more money after you die.

If you use a special needs trust to transfer assets out of your estate during life, you won't be able to serve as trustee because the money gifted to the trust is likely to be pulled back into your estate for estate tax purposes when you die.

Here are some options for you to consider when selecting your trustee:

Model 1: A Trustee directed by a Trust Advisory Committee.
The trustee manages funds, makes distributions, does taxes, and keeps records. The Trust Advisory Committee can provide advocacy for your child, keep family members involved, meet as needed with the trustee, and in some cases amend the trust or replace the trustee. This model works well when family members (often siblings) can serve on the Trust Advisory Committee but a professional serves as trustee. Family members are involved but don't have day to day responsibility for managing the trust.

Model 2: A Trustee directed by a Care Manager.
In this scenario, the trustee manages the funds, but a care manager interacts with the beneficiary and advocates on their behalf. A Trust Protector can oversee the Trustee and care manager from a distance and replace either for any reason. If your child has a long time relationship with a caseworker or social worker, it might make sense to have them continue in that role. Meanwhile, a professional can serve as the Trustee to handle financial responsibilities.

Model 3: Co-Trustees.
This model allows family members to serve as co-Trustee. Although their responsibilities are the same, typically one person serves more in the advocacy role and one person serves in the financial role. Co-trustees who are not professionals will need to seek assistance from benefit, tax, and financial advisors.

Model 4: Single Trustee.
Naming a sole Trustee is not preferable, but it can work. If a single non professional serves as trustee, there is a significant lack of accountability; however, success is totally dependent on having the right person in the role. If an adult sibling has taken on the role of advocate before the parents die and has demonstrated a willingness to take on that measure of responsibility, they can serve successfully. Regardless, the sole trustee will need to seek guidance and advice from professionals.

Regardless of which model you choose, the following needs must be met: advocacy, accountability, and financial management. Choosing the right fit for your child depends on your family situation, the nature of your child's disability, and the amount of money in the trust.

In any event, you can hash over these issues with your lawyer so that you make a good decision that works for your family.


© 2009 The Estate Planning Law Group.

Adam Lambert and Danny Gokey Aren’t Just Entertainers—They’re Also Philanthropists!

This past Spring, I became engrossed in American Idol. I admit, it was a bit of a guilty pleasure, but the show does have a way of drawing you in because you start to feel like you know the performers as real people - not just as entertainers. Once I was invested in the show, it was hard to stay away. I wanted to see how the competition would play out and find out if my favorite would win - alas, he did not!
 
 During the summer tour, two of the top four contestants, Adam Lambert and Danny Gokey are involved in charitable endeavors while singing to packed stadiums across the country. Adam lent his name to DonorsChoose and asked his fans to stop buying gifts for him, and instead, make gifts to DonorsChoose.org in support of music education programs for children. So far, Adam's fans have contributed almost $100,000. The fan group that contributes the most will be able to participate in a live chat with Adam once the DonorsChoose competition is complete.
 
 At the same time, Danny Gokey continued work on Sophia's Heart Foundation, which was inspired by the untimely death of his wife last summer. Sophia's Heart was created to provide "restoration" to children in need.
 
 Both Adam and Danny are off to a great start with respect to charitable planning. Although neither of them has accumulated substantial wealth yet, it's likely that they both will do so over time - particularly if their albums are successful. They deserve it. When Adam was an unknown in Hollywood, his mother used to send him gift cards so he would have enough money to buy groceries. Talk about "starving artist!"
 
 I'm confident that neither of them is currently thinking about estate tax and transitioning wealth to the next generation in a tax efficient manner, but, at some point, they will need to address these issues.
 
 Because they are charitably inclined, both Adam and Danny will have some great options when it comes to being a force for good in the world and minimizing taxes.
 
 Danny will be able to use his foundation as a means of supporting the kinds of charitable activities he believes in.  Plus, he will be able to make tax-free gifts to the foundation during his life. Adam hasn't created a foundation yet, but he should consider it once he starts to accumulate wealth (and buys that house he wants!). He can use the foundation to support a broad range of music education efforts while enjoying the involvement of his friends and family.
 
 Here are some of the issues you should consider if you would like to establish a private foundation:
 
 1) What is a private foundation?
 
 A private foundation is a distinct legal entity that is created by you and privately funded by you. Other people can also make tax deductible contributions to your foundation. Foundations are created for the specific purpose of contributing to various charitable causes (educational, religious, scientific, etc..) The foundation can be created with a specific purpose in mind (e.g. musical education for underprivileged kids) or it can be used to support a range of charitable activities (e.g. children who need "restoration" in various areas of their lives).
 
 2) What are the tax advantages of setting up a private foundation?
 
 Contributions are tax deductible, not subject to estate tax, and you can avoid capital gains tax on the sale of appreciated property. Neither Adam nor Danny likely has much appreciated property now, but over time, they will and can take advantage of these tax benefits.
 
 3) How can you involve your family?
 
 You can provide continuing employment and activity for your family members while preserving your family name for years to come. Perhaps Leila Lambert, Adam's mother, and Neil Lambert, Adam's brother, could participate? Family members can even serve as employees of the foundation.
 
 4) Who is in control of a private foundation?
 
 Foundations are managed by a trustee or executive directly who oversees the investments and makes charitable distributions. You can even appoint yourself as the trustee of our own foundation. This is a great way to maintain control over assets that would otherwise disappear into a public charity.
 
 5) How much must be distributed from the foundation each year?
 
 Your foundation must distribute at least five percent of its assets each year to public charities. With the current recession, foundations are likely to make only the minimum required distribution each year, but they are free to distribute more than five percent in good years.
 
 6) When is it cost feasible to set up and run a private foundation?
 
 You want to make sure that the foundation is sufficiently funded so that it can cover its operating expenses and can make yearly distributions while growing in value. You will need a lawyer to set up the foundation properly (and apply for non profit status). Fees range from a minimum of $ 7,500 and up depending on complexity (and it can be complex!). Once the foundation is set up, you will need an attorney to provide ongoing legal advice and a CPA to deal with tax issues. In some cases, there might be an employee who works on behalf of the foundation, which will add additional expense. You should be able to fund the foundation with at least several hundred thousand dollars, but over time, it's better if at least several million is available to fund the foundation's activities and expenses.
 
 The most enjoyable part of setting up a family foundation is working with an individual or family as they discern how to use their wealth to make the world a better place and bring their family together. The process makes it all worthwhile, and it doesn't necessarily require a lot of money. Some of my favorite clients run a very modest foundation that makes less than $ 10,000 in distributions each year, but they take their young children out in the community to visit various organizations and, together, they decide who will get checks this year. The kids help make the decision! What a great project to do together as a family.
 
 Even though we live in Chicago, we're going to the American Idol concert in Indianapolis, and we're looking forward to it.
 
 I'm sure I won't have a chance to talk directly with Adam (my favorite of Season 8), but I'd sure be willing to assist him when it comes time to set up his foundation.
 
 Just give me a call! 

Help! My Child Has Too Much Money

If your child has special needs, and they've been able to save some money while they are under age 18, congratulations! That's quite an accomplishment! You should be proud of your child and yourself for making that happen. Recently, I've received several calls from proud parents whose children have managed to amass some five figure investment accounts in their children's names. The children aren't yet 18 (but almost), and the parents have just started to realize that all the careful savings they have done over the years is going to cause a problem. In fact, by the time they call our office, they know they have a problem, but they aren't sure what to do about it. Here's what I tell them (just pretend you are listening in on the conversation. . . .) "Thanks for calling! I'm glad you are starting to think about what's going to happen when your child turns 18. You've probably heard lots of information from different people, and you aren't sure what step to take next. Here's the bottom line . . . . If you are planning on applying for government benefits when your child turns 18, your child is going to have to meet strict income and asset limitations. That means that he or she won't be able to have a bank account or other investment account with more than $ 2,000 in their name. Because your child is already over that threshold, you are going to have to do some benefits eligibility planning to make sure that your child is eligible as soon as possible after they turn 18. Here are your options . . . Spend down the money prior to your child's 18th birthday on things that your child needs; or Transfer your child's money to a pooled trust; or Set up a payback special needs trust for your child and transfer the money into the trust. Option (1) doesn't require a lawyer; option (2) requires the review of a lawyer but is much simpler than setting up a payback special needs trust; and option (3) requires a lawyer-one who knows how to set up the right kind of trust so it doesn't disqualify your child from benefits. What sounds right to you? I also do a lot of listening in these phone calls because I'm trying to get a sense of what is most important to the parents. The answer isn't always obvious, and it's not necessarily dependent on how much money is involved. As a general rule, the larger the amount of money involved, the more likely the parents will decide that it is necessary to create a payback special needs trust with the assistance of an attorney. That's not always the case however. Sometimes, the parent is adamant about preserving every penny for their child, and even if the parents could spend down the money on appropriate items, they want to make sure it is preserved for their child. Hence, the need for either a pooled trust or a payback special needs trust. Some people want to work with a lawyer, while others would rather work with one of the several well-run pooled trusts available in Illinois such as DayOne Reliance. In any event, I enjoy counseling parents about their options and helping them come up with a solution.

Interview With Joan Celebi, Ed.M., CLC

Kirsten:	Would you tell us a little bit about yourself and why you do what you do?
Joan:	I am a life coach for parents of children with special needs, and I've created a complete system for balanced living for parents who are juggling many roles. I have two children - one of whom has special needs. After my child with special needs was born, I
	went through a period of overwhelm. Even though I like to have my life in order, I felt like I was thrown into a world of chaos. I honestly felt like there was something wrong with me because I was dropping balls right and left, and I realized that I was deficient in my ability to manage things.  I joined a support group for parents of children with special needs and started to search for strategies that would help me navigate all the things I had to go through each day to do. I observed strategies from parents around me who seemed to have things under control and started to make a mental collection and use them in my own life. Now, I work with people all over the world. I am also lucky enough to have clients in Europe, New Zealand, and Australia. I've discovered that, no matter where we live in he world, we all go through the same things in our lives. There are so many similarities among parents. Through my work, I've created a complete system for balanced living for parents who are juggling the many roles they have. Most parents report being overwhelmed or feeling overwhelmed at some point, if not all the time. I've put together a book with strategies and systems work best for parents. I want parents to lead a balanced and joyful life and be able to focus on the things that matter to them.
Kirsten:	Can you tell me why it is so common for parents of children with special needs to feel overwhelmed?
Joan:	When I first started coaching, I kept hearing the word "overwhelmed" - where it feels like things are out of control and you don't have enough time in the day. Parents feel overwhelmed because of the huge juggling act. There is lots of advocating, driving, phone calls, advocating with health insurance companies and not enough time to handle it all. Parents also worry about not doing enough and about their children's future. Parents often ask themselves: "Am I doing enough? Could I be doing more? Is there something else I could have done?" Plus, we want to spend time with all of our children - not just our child with special needs. This is an added layer of things we have to deal with.
Kirsten:	Why is it so essential for special needs moms and dads to find balance in their lives?
Joan:	It is essential to find balance because your life depends on it! The obvious benefit is by making your life more manageable, you'll have a nicer life. When you get used to living at a crazy pace, you forget what it is like to have a normal life, which will take a toll on your health - physically and emotionally. You must get stress under control to preserve yourself for your children. We need to be in mental and physical shape for our families. When parents lead more balanced and less stressful lives, their children do better academically, socially, and emotionally. Think of your kids and their future. Plus, you want to set a good example for them so they realize that life isn't all stressful and unmanageable.
Kirsten:	So, how do you begin going about creating this balanced life?
Joan:	Parents often don't know where to begin, so I start with the basics. We have to meet our own needs before we can take care of our children. Where do you begin? It's not a matter of cramming everything in; it's a matter of stepping back and taking a look at the big picture. (1) First, how much sleep are you getting? Parents live on four to five hours of sleep per night. Try to find 3-4 nights per week to get enough sleep. Although irregular sleep patterns are common, sleep is the foundation of a balanced life. (2) What are you eating and when are you eating? You must eat well and at reasonable times. (3) You must stay hydrated by sipping water throughout the day. If you don't, your energy will sag as well. Go and buy a pretty water bottle and, then, use it. (4) Make sure you are taking time to breathe. There is the physical act of breathing; there is also value in taking two minutes every morning to start your day with some deep breathing. This is an automatic stress reducer. There are physiological things that happen when you do deep breathing. This sets the stage for the day. Stress may cause health issues. Release the stress any way you can. (5) Make exercise a regular part of life - even a five-minute walk is good and will give you a boost of energy.
Kirsten:	In your book, Overwhelmed No More, you talk about a "complete system for balanced living." Can you describe that for us?
Joan:	The basic strategies include simplifying your life, getting help, and banishing perfection. It's not hard to implement this in your own life - it's all small, simple, practical steps that people can start doing right now and see immediate results. Although most parents don't like to ask fro help, get the help you need into your life. Barter if you need help. Contact high schools and see if there is a certain number of community service hours students must meet before they graduate. As a parent of a child with special needs, you qualify for this help. College students are also looking for experience with children with special needs.
Kirsten:	What inspired you to start your website, www.SpecialNeedsParentCoach.com?
Joan:	I feel strongly that everyone should be able to access the benefits of life coaching, so one of my main goals is to help special needs moms and dads implement strategies for balanced living in ways that are simple, affordable, and not time consuming. That's why I offer free resources, including my newsletter and blog. I also have a book and an affordable coaching club. My mission is to get these strategies into the hands of as many parents of children with special needs as possible. Websites are a godsend because they are a great way to get these strategies out there. The book is $24.97 and is sort of a self-paced home study program. You can do a page at a time or a chapter at a time. I wanted to get the book out there as an alternative to working with me individually. I also offer a lunchtime teleconference series. The best thing to do is to get my free newsletter, which comes out every other work. You don'' have to think about it very much. In the Fall, I am going to start a low cost membership program. Once you subscribe to the newsletter, you'll find out about all of these strategies. Look for "Free Resources" on the options sign. You can also sign up for the all purposes seminar in the newsletter.

Michael Jackson: What Happens to His Kids?

In the wake of Michael Jackson's death last week, his three young children, Prince Michael, Jr., Paris Katherine Jackson, and Prince Michael Jackson II (aka "Blanket") face an uncertain future. On Monday, a Los Angeles County Superior Court Judge granted the children's grandmother, Katherine Jackson, temporary custody of the children. A hearing on permanent custody was set for next week. Katherine Jackson also filed a petition requesting to be appointed the administrator of the estate. Most recently, a will signed by Michael Jackson in 2002 was filed in court.

I noticed that immediately after Jackson died, scores of former "Jackson family attorneys" started to appear on the evening news broadcasts to give their perspective on what it all means.

Everybody has an opinion!

For those of us who provide guidance to people administering estates, I've heard this situation referred to as a sort of legal "Woodstock"! We just can't get enough.

Most of the estate administrations we guide do not result in litigation, and the facts aren't nearly as compelling or unusual. In fact, every day, people die, and the family picks up and takes care of the children and the money without all the drama, or fighting or litigation. That is what usually happens!

That's not how it's going to work with Michael Jackson's estate. There's too much money, too many creditors, and too many assorted advisors, attorneys, and other "hanger onners!"

Here's what is going to happen: litigation, and lots of it. This case is going to continue for years. There is a tremendous amount of money involved, young children who need to be cared for, and powerful and wealthy family members. In addition, it looks like there might be a dispute over who is going to be in charge of the estate. It all adds up to a toxic brew that is going to result in millions of dollars of lawyer's fees, court costs, bond, and executor/administrator fees.

What will happen to the children? What will happen to the money?

Because Jackson's death was only a week ago, there are still many unanswered questions, and the news is changing rapidly. On Wednesday, a will signed by Jackson was filed in the court. I've downloaded a copy already (I warned you, this is my estate planning "Woodstock!") and taken a look. Until the will was filed, there were allegations that Jackson's lawyers were keeping the will from his parents, Joe and Katherine.

In any case, a dispute might be brewing over whether the three non-family members named in the will are going to be appointed the executor of the estate or whether Jackson's mother, Katherine, will serve.

Now that Katherine has asked to be appointed the administrator of the estate, and a will has been filed, the judge will have to evaluate the evidence and determine whether the will is valid. If the judge determines that the will is valid, the judge will appoint the people named in the will to serve as the executors of the estate. If the will is not valid, the judge will have to make a determination as to who serves as the administrator.

The fact Katherine asked to be named the administrator of the estate (and not the executor) suggests that she did not believe there was a valid will at the time she made the request to be appointed the administrator. An adminsitrator is only appointed if there is no will or the will is invalid.

Whoever serves as the executor of the estate will be entitled to a significant amount of compensation based on California's statutory fee schedule for executors. These fees would be in addition to attorney fees.

At the same time, people are speculating about whether Jackson's three children are his biological children and whether Debbie Rowe is the biological mother of the oldest two. Did Debbie Rowe terminate parental rights to the children? Does she want the children returned? There's a large degree of uncertainly.

I've noticed that commentators have been making all sorts of suggestions regarding the three Jackson children: "They should go back to their biological mothers; they should go to Janet (she's the most stable); they should never go to Michael's father, Joe, because of alleged abuse; or the children should live with their nanny because they feel most comfortable with her and call her mom."

If a custody battle ensues over the children, the judge will give great deference to the fact that Jackson named his mother to serve as guardian of the three children. Jackson's nomination in the will is not the final word, however. If there is a conflict, opposing parties will present evidence to the judge, and the judge will decide based on the evidence presented in court.

Guardianship appointments are not automatic. The judge must still be satisfied that the appointment of a particular legal guardian is what is best for the children. If the judge finds that Debbie Rowe was the mother of the two oldest children and did not terminate parental rights, she would likely obtain custody even if she isn't the biological mother of the children. Whether she will seek custody is an open issue, but it is possible.

Whoever is appointed guardian will likely be required to go to court each year and report on the well-being of the children. The court-appointed guardians will serve until each child attains age 18. At that time, they are emancipated and will no longer be under a court-supervised guardianship.

The person who obtains guardianship of the children may or may not be in charge of their finances. Jackson's 1992 will indicates his mother should serve as guardian of the person and estate of his chidlren. The will indicates that the entire Jackson estate should go to the Michael Jackson Family Trust; it doesn't specify who the beneficiaries of the Family Trust are.

It will be interesting to see whether Jackson's assets are already titled in the name of the Family Trust (if so, those assets will avoid probate) or whether most of his assets will go through the probate process before being distributed to the Family Trust.Presumably, the assets in the family trust will be used for the benefit of Jackson's three children.

If the children inherit any money directly (i.e. not in a trust), the court will appoint a guardian to supervise the children's financial interests until each child reaches age 18. The court will exercise strict supervision over any part of the estate that is intended for the minor children. The investment choices will be restricted, a bond will have to be procured at great expense, and the court will require yearly accountings and perhaps permission to make any major distributions.

The probate process in California is both expensive and burdensome. The current situation is a toxic mix of money, celebrity, and a strong willed group of family members and professional advisors, who are likely to create drama for years to come and at great expense.

Given Jackson's diverse business interests, the sudden nature of his death, the large number of creditors who will be seeking compensation, I'm not sure there is anything Jackson could have done to avoid litigation upon his death.

Most families will never have to fact the kind of litigation that is going to ensue in this case. Regardless, I hope this story is a wake up call for all parents with young children. If you haven't named guardians already (both short term and permanent), do so immediately. Make it as easy as possible for your family if something should happen to you. Leave clear instructions about who you want to be in charge of both your children and your money. Let your loved ones know how you would like your children to be cared for.

R.I.P. MJ. 

© 2009 The Estate Planning Law Group

WANT TO USE THIS ARTICLE IN YOUR E-ZINE OR WEB SITE? You can, as long as you include everything in quotes with it:

"© 2009 The Estate Planning Law Group. Written and edited by Kirsten Izatt and Bill Deitch. Bill and Kirsten's mission is to make the world a better place by providing a lifetime of ongoing guidance and counsel to people who want to make the very best decisions about how to plan for and protect their families through estate planning. Get their revealing, enlightening, and sometimes humorous "Family Wealth Builder" e-zine at www.FamilyWealthBuilderNewsletter.com."

What the Illinois Doomsday Budget Means

It's been a busy week so far. I've received emails, telephone calls, and urgent requests to act and make sure that the Illinois Legislature passes a new budget. Why? Two weeks ago, the State legislature passed a so-called "doomsday budget."

Unless further changes are made, on July 1, state funding for social service agencies is going to fall off a cliff.

The FY 2009 budget for the Illinois Department of Human Services (DHS) is $ 4 billion, but the FY 2010 "doomsday" budget for DHS is $ 1.6 billion. The difference equals a reduction of more than half the social services budget in the state of Illinois.

What will happen? Infants, children, and adults are going to lose current services. Programs will shut down and staff will be laid off. Payment delays for providers will get worse, and some community organizations may go out of business.

More specifically, the following services will be cut: community grants, small and large group homes, day training, workshop, employment, and supported employment, family support, case management, statute institutions, everything in the developmental disability system. These cuts will have a severe impact on the disability community in Illinois.

There is a $ 12 billion dollar budget gap, and either spending must be cut or taxes must be increased. Illinois isn't the only state dealing with a fiscal crisis, but there is a long history in this state of holding social services funding hostage to powerful and entrenched political interests.

Something has to give. Governor Quinn proposed plan for balancing the budget included a 50% hike in the income tax rate was a nonstarter. His plan B is to cut social services to the bone.

If you don't like what would happen if the human services budget is cut like this, please contact your State legislator and tell them to "restore the human services budget." If you don't know who your legislator is, go to www.votesmart.org to find out.

As the pressure increases, I think that the legislature will restore the human services budget, but they are seeking political cover before doing so. Take action and let your legislator know what you think.

Next month, I'll let you know what unfolds.

In the meantime:

Here is the latest list of media events and rallies related to the budget impasse:

Governor Quinn, Thursday, June 18, 11:30, Champaign, Developmental Services Vocational Building, 3102 Clark Road.

Governor Quinn, Thursday, June 18, 3:30, LINC, 120 East Street, Belleville, contact 618-235-9988.

Thursday, June 18, 11:00, Major Human Services Rally, Chicago, James R. Thompson Center, 100 W. Randolph, contact Sarah Frick: Sarah.Frick@ywcachicago.org

Thursday, June 18, 4:30, YWCA, 412 First Ave, Sterling, for info call 815-625-0333

Thursday, June 18, Joliet, 3:30, Will County Courthouse, 14 W. Jefferson Street, contact Amy Emerson: 815-741-1163

Friday, June 19, Aurora, 10:00, Mercy Hospital Campus, 400 Mercy Lane, contact AID at 630-966-4100

Friday, June 19, Wheaton, 2:00, DuPage County Courthouse, east side of 421 County Farm Road, Contact Lori Hornick: 630-628-7174

Friday, June 19, Watseka, 9:15, The Arc of Iroquois Co, 700 East Elm Street, contact Christine McTaggart: 815-432-5288.

Saturday, June 20, Urbana, United Way Office

Monday, June 22, Olmstead Anniversary Rally for Disability Rights, 11:00, Thompson Center, 100 W. Randolph, contact: Gary Arnold: 312-640-2199.

Monday, June 22, Joliet, Legislative Forum, 4:00 to 6:00, Will Grundy CIL, 2415-A West Jefferson Street, contact 815-729-0162

Tuesday, June 23, Springfield, MASSIVE RALLY at the state capitol. 11:30. Arrive by 11:00 to pass through security.

Wednesday, June 24, Mundelein, Legislative Forum, 4:00 to 6:00, Lake Co. CIL, 377 N. Seymour Ave, contact: 847-949-4440

Friday, June 26, Oak Lawn, 11:00, Park Lawn, 10833 S. LaPorte, info contact Brendan McCormick: 708-335-0020

© 2009 The Estate Planning Law Group.


WANT TO USE THIS ARTICLE IN YOUR E-ZINE OR WEB SITE? You can, as long as you reference the author. For articles written by Kirsten, include everything in quotes with it: "© 2009 The Estate Planning Law Group. Written and edited by Kirsten Izatt.  Kirsten and Bill Deitch's mission is to ensure that the parents of children with special needs have the information and resources they need to build a fortress of protection around their child that will last a lifetime. Get their revealing, enlightening, and sometimes even humorous "SNAP" e-zine at www.SpecialNeedsAllianceProject.com."

Three Documents Every College Age Kid Should Have

Did you know that, once your child turns 18, you no longer have access to their medical records or their financial information?

Did you know that one of the first things you should do when your child turns 18 is take them to your lawyer's office?

It might seem like just yesterday your child was running around in the backyard playing silly games. Now they are graduating high school and maybe even going away to college. The government says your son or daughter is now an adult, but to you, they'll always be your baby. While you will no longer be wiping their tears away as you put a Band-Aid on a skinned knee, you can make sure you have the legal authority to help them and care for them - no matter what.

Most parents don't realize it, but once your child turns 18, there are three very important legal documents your children must have in place. They are: a Financial Power Of Attorney, Health Care Power of Attorney, and a HIPAA Authorization. Although unthinkable, if your child ever became incapacitated and unable to make decisions on his or her own, a Power of Attorney gives you the legal authority to make the best decisions for your child.

During the summer, we always encourage our clients to bring in their college age children and take care of this important legal business! In fact, I like to explain to our clients that one of the first thing my kids are going to do when they turn 18 is visit the office and sign their first legal documents. I'm sure that visiting my office won't be at the top of their "to do" list, but it's going to be at the top of my list.

We've got time though - my oldest is only 12 years old, so I've got six years to get the documents prepared. Right now, they like to come in only if there is new candy in the bowl.

A "health care power of attorney" lets both your child's physician and you know their health care preferences, including the types of special treatment they want or don't want if they are hospitalized. Many parents don't realize that when your child goes off to college, you won't have access to their medical records or talk with physicians at your child's school. A health care power of attorney and a HIPAA authorization will allow you to make sure that your child is taken care of no matter what happens. Now that your baby is a young adult, these documents are critical to their well being - and one of the greatest gifts you can give them.

See you soon!

© 2009 The Estate Planning Law Group.

WANT TO USE THIS ARTICLE IN YOUR E-ZINE OR WEB SITE? You can, as long as you include everything in quotes with it: "© 2008 The Estate Planning Law Group. Written and edited by Bill Deitch and Kirsten Izatt. Bill and Kirsten's mission is to make the world a better place by providing a lifetime of ongoing guidance and counsel to people who want to make the very best decisions about how to plan for and protect their families through estate planning. Get their revealing, enlightening, and sometimes humorous "Family Wealth Builder" e-zine at www.FamilyWealthBuilderNewsletter.com."

How DayOne Network Cares

Because we work with so many people who are doing their estate planning for the benefit of a loved one who has a disability, we often receive many questions about services available in the community. Family members are often overwhelmed trying to access the appropriate services and ask many questions, and we do the best we can to offer guidance.

Fortunately, we have strong relationships with many services providers in the community, and we can often provide referrals to the appropriate organization. We wish we had all the answers, but we don't. That's why we are so pleased to be able to refer people to a place that can meet their needs.

DayOne Network, Inc., a nonprofit, community based agency established in July, 1989, is one of those places! Because the delivery of social services for the disabled is highly decentralized in Illinois, local service coordination is a must.

Here's what DayOne Network provides . . . .

The organization provides service coordination and advocacy services to children and adults with developmental disabilities and/or delays in Kane and Kendall Counties and Hanover Township in Cook County.

Their purpose is to ensure that people with developmental delays and/or disabilities are identified, evaluated, and referred for services appropriate to their needs. Service Coordinators monitor the plan to ensure that it is fully implemented.

People seeking the assistance of DayOne Network include people entering the system for the first time as well as "long term users" experiencing changing service needs, emergency situations, or discontent with their current services. In addition, DayOneNetwork is the point of entry for infants and toddlers and their families to access services in the early intervention service system in Kane and Kendall Counties.

Individual Service Coordinators make the system work! They sort through the red tape and help families make informed decisions.

DayOne Network's sister organization, DayOne Reliance, provides solutions for people who want to set up trusts for their loved ones without jeopardizing governmental benefits.

DayOneNetwork receives funding from the state, charitable foundations, and individual donors.

There are many ways to help the organization. If you would like to be involved, please go ahead and contact Joyce Helander, the Executive Director, at 630-879-2277. She is warm, caring, and would love to hear from you.

Likewise, if you would like to make a charitable contribution to support the goals of the organization, you can find out more here.

© 2009 The Estate Planning Law Group.


WANT TO USE THIS ARTICLE IN YOUR E-ZINE OR WEB SITE? You can, as long as you reference the author. For articles written by Kirsten, include everything in quotes with it: "© 2009 The Estate Planning Law Group. Written and edited by Kirsten Izatt.  Kirsten and Bill Deitch's mission is to ensure that the parents of children with special needs have the information and resources they need to build a fortress of protection around their child that will last a lifetime. Get their revealing, enlightening, and sometimes even humorous "SNAP" e-zine at www.SpecialNeedsAllianceProject.com."

Keeping the Family Together

There is nothing like young newlyweds starting their life together. You're young, you're in love, and even though there isn't much money in the bank account yet, life seems filled with promise. It all seems pretty simple. You get married, add your new spouse's name to your joint checking account, and you're ready to go.

Then life happens . . . You have children, one person grows a business; you start to accumulate life insurance, retirement accounts - even disability insurance. You may experience a divorce. There may be step children - even children from more than one marriage.

And, hardest of all, what happens when there is an untimely death of a spouse and, then, remarriage?

When my Mom was diagnosed with metastatic colon cancer almost four years ago, one of the first things my parents did was visit their estate planning attorney (it's not me!) to make sure their estate plan was up to date and made sense in light of her situation. They had worked with the same attorney for many years, but they still wanted to make sure their plan would work for them. By the time my mom passed away 15 months later, their planning was rock solid. From a financial perspective, everything was taken care of.

My parents are planners. In my practice as an estate planning lawyer, I've learned that it is highly unusual for someone to receive a terminal cancer diagnosis and think first of their estate planning attorney. In fact, many people feel like they are "giving up" if they take care of their estate planning in the face of a terminal illness.

I'm so grateful that my parents were able to face these tough issues and take action in the face of such a terrible diagnosis because I've seen what can happen when people leave these decisions to their surviving family members.

Why? Because my Mom and Dad's decisions have given me and my siblings the tools we need to make sure our family stays together in the long run. You see, my Dad has three children from his first marriage, two children from his second marriage (I'm one of them), and a third wife with a long time family business.

As you can see, there's a lot of room for problems to arise if my Mom and Dad hadn't set forth some clear instructions about EXACTLY what they wanted to happen when each of them passed away.

They've already answered all those questions.

Who's in charge? We know.

Where does everything go? We know.

Who lives in which house for how long? We know.

What to expect regarding an inheritance? We already know.

Which lawyer to work with? We know.

Should my Dad's third wife expect support from him if he passes away first (or vice versa)? We all know what will happen.

Are the three children from my Dad's first marriage entitled to anything my mother received from her parents? There are clear instructions on this issue.

You see, when my Dad passes away (he's doing great right now!), I want everything to be perfectly clear so that our family stays close together and isn't torn apart through misunderstandings, confusion, or resentment. I want my Dad and his new wife to enjoy their lives together without the rest of the family (on both sides) worrying about what will happen to his stuff or her stuff.

So, this Mother's Day, here's a thank you to my Mom and Dad for taking such good care of their family!

© 2009 The Estate Planning Law Group

WANT TO USE THIS ARTICLE IN YOUR E-ZINE OR WEB SITE? You can, as long as you include everything in quotes with it:

"© 2009 The Estate Planning Law Group. Written and edited by Kirsten Izatt and Bill Deitch. Bill and Kirsten's mission is to make the world a better place by providing a lifetime of ongoing guidance and counsel to people who want to make the very best decisions about how to plan for and protect their families through estate planning. Get their revealing, enlightening, and sometimes humorous "Family Wealth Builder" e-zine at www.FamilyWealthBuilderNewsletter.com."

Why Almost Home Kids Are Lucky Kids

At a recent meeting of the Suburban Chicago Planned Giving Council, I met Monika Pandya, who is involved with Advancement for CoACH Care Center. During the meeting, I discovered that CoACH Care Center (soon to be called Almost Home Kids™) works every day with kids who have special needs. I couldn't resist finding out more, and Monika was kind enough to invite me over for a tour of their facility.

Wow! I was so impressed with the services provided by CoACH Care Center, I had to let you know what they do. CoACH is located at 7 S. 721 Route 53, Naperville, IL 60540. Their main phone number is 630-271-9155. (Call for directions, online maps won't get it right, trust me!!).

CoACH (Coordinating Action for Children's Health) provides medical services and therapy to medically fragile children who are transitioning from hospital to home. It is a nonprofit organization, which was founded in 1999 by two moms who saw a need in the community. Since then, the organization has grown with tremendous community support and the leadership of President and CEO, Deobrah A. Grisko.

Today, CoACH can take care of 10 children in a warm home-like atmosphere. They are currently looking to expand so that they can care for up to 12 children at one time. While the children reside at CoACH, the staff teaches the parents how to care for their medically fragile children-including how to use special medical equipment and watch for signs and symptoms of problems.

Over time, parents gradually take over the care of their children under the supervision of the nursing staff while they're still in transitional care at CoAch. I was so impressed by the resources and support provided to the children and their parents at CoAch. In some cases, the children transitioning from hospital to home will completely recover from their high needs medical situation, but in other cases, the child may have special medical needs for life.

In either case, while their child is at CoACH, parents are able to identify resources in the community that will provide support once their child returns home. Monika explained that CoACH also serves as a respite center for parents who need to take a break from the daily care routine. That's why children often stay at CoACH more than once! I bet that going back to CoACH feels like a mini vacation from their day to day routine.

The care model provided by CoACH is a win-win for all involved. The insurance companies are supportive because the cost of care is much less expensive than keeping the child in a hospital, and parents love the attentive training received from the skilled nurses. The respite program saves the system by helping to keep families intact and in their own homes and out of other more costly state systems, e.g. DCFS, Family Court, Foster Care, Mental health, and Institutional Care.

The leadership at CoACH hopes that CoACH wills serve as a model for other care centers around Illinois and the nation. The good news is that they have received numerous inquiries from people in other states who would like to start similar organizations in their state.

About one-third of the organizations' budget is derived from contributed support. If you'd like to support this organization, I encourage you to contact Monika Pandya at 630-271-9155. 

"Almost Home Kids" are certainly lucky kids!

© 2009 The Estate Planning Law Group.

WANT TO USE THIS ARTICLE IN YOUR E-ZINE OR WEB SITE? You can, as long as you reference the author. For articles written by Kirsten, include everything in quotes with it: "© 2009 The Estate Planning Law Group. Written and edited by Kirsten Izatt.  Kirsten's mission is to ensure that the parents of children with special needs have the information and resources they need to build a fortress of protection around their child that will last a lifetime. Get their revealing, enlightening, and sometimes even humorous "SNAP" e-zine at www.SpecialNeedsAllianceProject.com."