In a message dated 10/20/99 6:01:18 PM Pacific Daylight Time, Tamar40 writes:

> 
>  From: Lawrence Jay Buchalter <[log in to unmask]>
>  
>    
>  
>  The Personal Advisor
>  Money Sense
>  
>  
>   
>  There may come a time when you cannot personally provide financial help to
>  your disabled loved one, so arrange plans now to assure security of their
>  monetary future. 
>   
>  
>  Allen N. Jones
>  Senior Vice President 
>  and Director
>  Private Client 
>  Marketing Group
>  Merrill Lynch  
>  Related Links
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>  Safeguard Quality of Life for Children with Disabilities — October, 1999 
>  
>  
>    
>  There are 14.7 million children and adults with severe disabilities, but
>  only a small fraction of their families have taken the necessary steps to
>  protect them from an uncertain financial future. At the same time, a
>  possible reduction in government benefits and a longer life expectancy for
>  the disabled mean more years of financial dependence and less money
>  available to fill this need. 
>  
>  Families of children with disabilities often face a wide disparity between
>  their needs and financial preparedness to care for loved ones, much due to
>  a lack of education and a knowledgeable financial advisor on the issues
>  these families face. A child with severe disabilities may need your help
>  for the rest of his or her life. Because you may not always be able to
>  personally provide it, a plan for the future is critical. 
>  
>  All parents have hopes for their children's future. But when a child has a
>  severe disability, a parent's concerns take on a special urgency. You worry
>  about who will care for your child if you are no longer able to, and where
>  he or she will live. You wonder whether he or she will have the resources
>  to sustain a decent quality of life. The issues involved can be
>  complicated, but you can create a plan that is both comprehensive and
>  effective. 
>  
>  A Five-Step Plan 
>  Consider this five-step plan to ensure that your child or grandchild
>  receives the best care throughout his or her life. 
>  
>  1. Prepare a letter of intent. 
>  A letter of intent is written by parents or other family members to
>  describe the child's history, current status and what future the family
>  hopes for him or her. It should cover such wide-ranging topics as
>  housing/residential care, education, employment, medical history and care,
>  behavior management, social activities and religious preferences, and it
>  should be updated as this information changes. As much as possible, involve
>  the child in preparing this letter, so that his or her preferences and
>  hopes for the future will be represented. 
>  
>  While you are living, the letter can be used by lawyers and financial
>  planners to help you draft a plan to ensure your wishes are carried out. If
>  you are become unable to take care of your child, the letter gives future
>  caregivers vital information on how to best meet his or her needs. 
>  
>  2. Choose guardians or advocates.
>  These people, most often family members, are selected to implement your
>  letter of intent. An advocate is a non-legal, usually informal position in
>  which the chosen individual can assist the person with disabilities on
>  almost any matter. Guardianship is a court-approved legal relationship in
>  which an individual is assigned a specific degree of responsibility for
>  designated matters. 
>  
>  3. Determine the realistic cost of your plan and the resources available. 
>  A financial planner experienced in working with families of children with
>  disabilities can review your letter of intent and help you prepare a
>  detailed financial analysis based on projected costs. Together, you can
>  then review the resources available to fund your plan. These may include
>  government benefits, your savings, assistance of other family members, your
>  estate, inheritances from other relatives and friends, property,
>  investments, military benefits and insurance. 
>  
>  4. Determine a funding plan. 
>  If your child currently receives (or may one day need to depend on)
>  government benefits, it is important to create a plan that will maintain
>  his or her eligibility. (Government benefits can include health care, job
>  training, supported employment, subsidized housing, transportation
>  assistance and personal attendant care, as well as money.) Bequeathing a
>  disabled individual assets worth more than $2,000 may eliminate their
>  eligibility for many benefits. 
>  
>  The rules of public assistance do allow family to provide some
>  supplementary income and resources to the person with a disability, but the
>  current level of benefits makes supplementation essential to a reasonable
>  quality of life. The regulations are strict, however, so the most reliable
>  way to leave an inheritance to your child with a disability and preserve
>  his or her eligibility might be through a special needs trust. 
>  
>  There are two types of special needs trusts: testamentary trusts created
>  upon the death of the parents and living trusts established while the
>  parents are still living. Living trusts may offer several advantages: 
>  
>  Families can start putting money into the trust now, as part of a long-term
>  savings program. 
>  Using trust funds to pay for current expenses is a good tax record-keeping
>  method. 
>  Other relatives can gift money to the trust now and gain tax benefits. 
>  Supplementary assistance to the beneficiary will continue at your death,
>  uninterrupted by any delays for probate and creation of a testamentary 
trust.
>  
>  Whatever kind of trust you set up, it must be administered by a trustee,
>  with the special needs person as beneficiary. The trustee has absolute
>  discretion to provide whatever assistance is needed, and trust funds must
>  be used for supplementary purposes only. 
>  
>  5. Meet with all involved parties to discuss your plan, and review the plan
>  at least once a year. 
>  Professional help can make the task of ensuring your child's future
>  security easier and more effective. Attorneys and financial planners
>  experienced with families of children with disabilities can provide
>  valuable expertise. Organizations that work with people with disabilities
>  and their families can also provide assistance and advice. Working
>  together, these professionals can help you address the concerns you have
>  about the current and future needs of your family. 
>  
>  To receive more information on Merrill Lynch's Families with Children with
>  Disabilities Program, order a brochure. 
>  
>    
>   
>    
>   
>  
>   
>  
>  Larry Buchalter
>  Berkeley California
>  [log in to unmask]
>  
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