Do you have a client who wants to include an individual with disabilities in his or her estate plan?

Is your client disabled and about to receive a lump sum, such as a personal injury settlement or back payment from Social Security?

In both of these cases, if the individual with disabilities is receiving governmental assistance, such as Medicaid or Supplemental Security Income (SSI), the receipt of an inheritance or lump sum can result in the termination of eligibility for assistance.

Through the Trust, a parent, grandparent, legal guardian or an individual with disabilities can establish an account that will provide a lifetime plan of payments to support an individual's supplemental needs, without risking Medicaid or SSI benefits.

By contributing cash or other assets into the Trust, a charitable gift annuity is created for the benefit of the individual with disabilities. The annuity generates a lifetime plan of fixed, monthly payments, which are deposited into a spending account. The money in the account can be spent quarterly or accumulated for a future activity.

While the Trust cannot be used to fulfill an individualís basic necessities (i.e., food, clothing or shelter), it can provide for the "extras" in life, such as travel, hobbies, pets, recreation, or medical equipment and services not covered by Medicaid.

Assets held in the Trust are not counted for Medicaid or SSI purposes, so long as the monthly payments are used for the individual's supplemental needs. The monthly payment amount is calculated when the account is funded and is based upon the value of the assets transferred, the age of the individual with disabilities and charitable gift annuity rates at that time.

By designating a personal representative to oversee the account, your client has peace of mind that their disabled loved one's best interests are being looked after now and in the future.

Your client can establish and account in the Trust to supplement the individual's needs immediately, or the account can be deferred and funded through your client's estate plan.

"To learn more about The Disability Foundation, including current and estate charitable tax benefits, and how the foundation can help you serve your clients and their loved one with disabilities, call me, Kevin Hayde, executive director of The Disability Foundation, at (937) 225-9939. I'll be happy to talk to you or your attorney or other advisor about this planning option or other resources that might be available for your client's family."