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Planning for Special Needs Presented by: The Special Needs Family Planning Group at AXA Advisors Contact Info Stuart Flaum - Tel: 917 318 5051 Email: [email protected]

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Overview • Why we are here • Us about Us • What we would like to accomplish • An overview of Special Needs Trusts • The advantages of forming a special needs trust

• How to properly establish an SNT • Why it makes sense to form it sooner rather than later

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Special Needs Trusts A trust is a form of ownership of property, whether real estate or investments, where one person – the trustee – manages the property for the benefit of someone else – the beneficiary. A special needs trust is one that one person, parent or spouse creates for the benefit of a special needs child or spouse with a disability.

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How it works Cash or Assets

Parents Or Relative Establish Trust Discretionary Payments Supplemental Needs: • Telephone Bills • Medical Care • Special Equipment • Education

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Government Benefits

Basic Needs: • Food • Clothing • Shelter

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What a SNT does Two primary functions • Manages funds for someone who may not be able to do so themselves due to disability. • It preserves the beneficiaries eligibility for public benefits, whether that be SSI, Medicaid, public housing or any other program.

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What does forming a SNT accomplish •It allows you to leave property and resources for the benefit of your child without causing the child to lose important public assistance. •It helps to ensure that the funds left to the child will be properly managed and distributed in the best interest of the child •It prevents any other children you may have with being overburdened with caring for the sibling with special needs •It helps to fairly distribute the estate between your child with special needs and any other children you may have. •The trust, if properly managed, will help to ensure that there is enough money to sustain your special needs child over time.

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The Wrong Approach Although they are an integral part of the Siblings and •network that will care for your child after you Loved ones no longer can they should not have the undue burden of maintaining all aspects of their siblings life. In addition this burden can cause strained relations between them.

Public •First and foremost public benefits programs are often inadequate and may need to be Assistance supplemented case with other resources. •Things change. The programs may change, your loved ones circumstances may change.

•Other resources need to be available just in case

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The team Legal The lawyers are responsible for forming the most appropriate type of trust and making sure that it is a legally sound

Financial Financial planners are responsible for ensuring that the trust is funded with the proper assets and that those assets are managed properly

Trustee Trustees should consult with both the lawyers and planners to decide how to distribute the assets in the beneficiaries best interest

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Review Things to consider

• Is your current plan appropriate for

both your current situation and your loved ones future

• Examine the effects of your plan on

your estate, potential federal aid, and taxes

• Develop a plan based on your specific situation

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Next Steps Get started on a special needs plan, or re-examine your current strategy

Prioritize and manage your complete financial goals, not just special needs funding Seek professional advice to help you evaluate your options

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Thank You!

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This seminar is for informational purposes only. Please be advised that this seminar is not intended as legal or tax advice. Accordingly, any tax information provided in this seminar is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer. The tax information was written to support the promotion or marketing of the transaction(s) or matter(s) addressed and you should seek advice based on your particular circumstances from an independent advisor. Securities products and services are offered through AXA Advisors, LLC, 1290 Avenue of the Americas, NY, NY 212-314-4600. Member FINRA.

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Why AXA Advisors? •

Dedicated financial professionals passionate about this area of financial planning.

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Both personally and professionally experienced in special needs planning

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Active members in the special needs community

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Subsidiary of a global financial services leader

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Part of a family of companies with a long history of helping individuals and businesses develop financial strategies

Broad range of products and services through an open provider network

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