• The ward is a minor (less than 18 years old)
• The ward is mentally ill, as evidenced by the opinion of a qualified physician
• The ward is mentally retarded, as evidenced by the opinion of a qualified physician
• The ward, because of excessive drinking, gambling and the like, wastes or lessens his estate, commonly called a "spendthrift."

Source: www.massbar.org.

Health Care Proxy
The health care proxy helps to make medical decisions if you are unable to do so. The State of Massachusetts does not recognize the living will for health care decisions.

Letter of Intent
Although not legally binding, this form communicates your desires and concerns to future caretakers. It covers vital statistics, your child's financial picture, details about what works well or not so well for your child, suggestions about what changes might be needed for the future, and a list of the locations of all pertinent documents and records.

OBRA 1993 - (d)(4)(A) special needs trust
A section in the federal statute governing Medicaid (42 USC 1396 p (d)(4)(A)) provides that a person can maintain eligibility if he or she places excess funds in an eligible trust. These are called "Payback " trusts. "Payback" trusts are created with the assets of a disabled individual under age 65 and are established by his or her parent, grandparent or legal guardian or by a court. They also must provide that at the beneficiary's death any remaining trust funds will first be used to reimburse the state for Medicaid paid on the beneficiary's behalf. Source: www.elderlawanswers.com.

Pooled Trust - (d)(4)(C) special needs trust
Medicaid and SSI law also permits "(d)(4)(C)" or "pooled trusts." Such trusts pool the resources of many disabled beneficiaries, and those resources are managed by a non-profit association. Unlike individual disability trusts, which may be created only for those under age 65, pooled trusts may be for beneficiaries of any age and may be created by the beneficiary herself. In addition, at the beneficiary's death the state does not have to be repaid for its Medicaid expenses on her behalf as long as the funds are retained in the trust for the benefit of other disabled beneficiaries. (At least, that's what the federal law says; some states require reimbursement under all circumstances.) Although a pooled trust is an option for a disabled individual over age 65 who is receiving Medicaid or SSI, those over age 65 who make transfers to the trust will incur a transfer penalty. Source: www.elderlawanswers.com.

Power of Attorney
The power of attorney names an individual to act on your behalf during your lifetime if you become disabled or incapacitated and cannot make decisions.

Trustee
The person(s) who manages the Trust. There is a fiduciary responsibility for seeing that the funds are properly invested and disbursed according to the wishes of the Trustor and the laws of the state. The Grantor and the Trustee may be the same person.

Wills
A will is a written instrument controlling the disposition of an individual's property at death. The laws of each state establish the formal requirements for a will. Source: www.massbar.org.

Government Benefits

Medicaid
Medicaid is a joint Federal and state program that helps with medical costs for some people with low incomes and limited resources. Medicaid programs vary from state to state, but most health care costs are covered if you qualify for both Medicare and Medicaid. People with Medicaid may get coverage for things like nursing home care and outpatient prescription drugs that are not covered by Medicare. Source: www.medicare.gov

Medicare
The federal health insurance program for: people 65 years of age or older, certain younger people with disabilities, and people with End-Stage Renal Disease (permanent kidney failure with dialysis or a transplant, sometimes called ESRD). Source: www.medicare.gov.

Representative Payee
Sometimes, people who receive Social Security benefits are not able to handle their own financial affairs. In those cases, and after careful investigation, Social Security appoints a relative, friend or another interested party to handle their Social Security matters. That person is called a Representative Payee. They are required to provide detailed records of these funds. Having power of attorney over someone does not automatically qualify that person to be a Representative Payee. Source: www.ssa.gov/oig/hotline/repayee.htm.

Section 8 - Housing Assistance
The Section 8 Housing Choice Voucher program (HCVP) is the federal government's major program for assisting very low income families, the elderly, and the disabled to rent decent, safe, and sanitary housing in the private market. Since the housing assistance is provided on behalf of the family or individual, participants are able to find and rent privately owned housing, including single-family homes, townhouses, and apartments. The participant is free to choose any housing that meets the requirements of the program and is not limited to units located in subsidized housing projects. Source: www.mass.gov.

Social Security Disability Income - SSDI
Social Security Disability Insurance (SSDI) is a program financed with Social Security taxes paid by workers, employers and self-employed persons. In order to be eligible for a Social Security benefit, the worker must earn sufficient credits based on taxable work. Disability benefits are payable to disabled workers, disabled widow(er)'s or adults disabled since childhood, who are otherwise eligible. Auxiliary benefits may be payable to a worker's dependents, as well. The monthly disability benefit payment is based on the Social Security earnings record of the insured worker on whose Social Security number the disability claim is filed. Source: www.socialsecurity.gov.

Supplemental Security Income - SSI
The SSI program provides monthly income to people who are age 65 or older, or are blind or disabled, and have limited income and financial resources. Effective January 2004 the SSI payment for an eligible individual is $564 per month and $846 per month for an eligible couple. If you are married, and only one person is eligible, a portion of your spouse's income may be counted. In addition, your financial resources (savings and assets you own) cannot exceed $2,000 ($3,000 if married). You can be eligible for SSI even if you have never worked in employment covered under Social Security. Source: www.socialsecurity.gov.

Life Insurance

There are basically two forms of life insurance, term and permanent (whole life). Term insurance provides protection for a certain period of time. Permanent insurance provides protection for one's whole lifetime. This does not necessarily require premium payments for your whole life. If you have a child that will need your financial assistance for his or her entire life, it is a basic necessity to have permanent coverage. There are combination of both and variations as well. Below is a general guideline of the different types of life insurance policies available.

Permanent life insurance
Life insurance designed to provide lifelong financial protection. As long as you pay the necessary premiums, the death benefit will be paid. Most permanent policies have a feature known as cash value that builds up, tax-deferred, over the life of the policy and can be used to help fund financial goals, such as retirement or education expenses. Source: www.acli.com.

Survivorship (Second-To-Die) Life Insurance

This type of coverage insures two people and pays the death benefit at the death of the second insured. The premiums are significantly less than two traditional insurance policies because the policy insures two lives. For older individuals with some health considerations, this may be a viable option for coverage. The policy can be designed using either whole life or term, or a combination of both. This product is frequently used in the special needs market because the major concerns usually develop at the death of the second parent (or caretaker). This is the time when money is often needed the most.

Term insurance
Insurance that covers the insured for a certain period of time known as the "term." The policy pays death benefits only if the insured dies during the term, which can be one, five, 10 or even 20 years. Source: www.acli.com.

Universal life insurance (Adjustable life)
A type of permanent life insurance that allows you, after your initial payment, to pay premiums at any time, in virtually any amount, subject to certain minimums and maximums. This policy also permits you to reduce or increase the death benefit more easily than under a traditional whole life policy. To increase your death benefit, the insurance company usually requires you to furnish satisfactory evidence of your continued good health. Source: www.acli.com.

Whole life insurance (Ordinary life)
The most common type of permanent life insurance is whole life. With this type of policy, premiums generally remain constant over the life of the policy and must be paid periodically in the amount specified in the policy. Source: www.acli.com.