FOR BREAKING NEWS VISIT WWW.QNS.COM MARСH 5, 2020 • HEALTH • THE QUEENS COURIER 49
health
Encouraging youth sports and their benefi ts
Sports help shape kids’ lives, but due
to funding shortages, some school sports
programs are at risk.
Most experts agree physical activity is
an essential aspect of youth development
that teaches teamwork, builds confi dence
and fuels academic potential. However,
according to a survey of middle school
educators engaged with DonorsChoose.
org, 6 in 10 feel their middle school athletic
programs are barely funded or underfunded.
Elder Law Minute TM
Special Needs Trusts for the Elderly
BY RONALD A. FATOULLAH, ESQ.
AND EVA SCHWECHTER, ESQ.
For many seniors, government assistance
programs such as Medicaid and
Social Security benefi ts are a necessity
in order to survive. Both Medicaid and
Supplemental Security Income (“SSI”)
can be a lifeline to seniors who are living
with limited assets. It is important to
be familiar with the ins and outs of both
programs in order to achieve and maintain
eligibility.
Medicaid and SSI are both means-tested
programs; this means that an individual
must keep his or her assets and/or
income below a certain level to achieve
and maintain eligibility. Medicaid is a
healthcare benefi t administered individually
by each state. In New York, the
current resource (assets) level for a one
person household is $15,750, while the
income level for a one person household
is $875. SSI is the basic federal safety net
program for the elderly, blind and disabled,
providing them with a minimum
guaranteed income up to the Federal
Benefi t Rate, which is currently $783 for
one individual, as long as the individual’s
resources are below the program’s
resource limits of $2,000. Once an individual
qualifi es for and is in receipt of
these benefi ts, it is important to remain
eligible. Th e receipt of an inheritance or
ELDER LAW
a personal injury settlement can impact
eligibility if no further action is taken.
Supplemental needs trusts (also
known as “special needs” trusts) can be
an important planning tool for anyone
receiving means-tested government benefi
ts. Th ese trusts allow a special-needs
benefi ciary to receive inheritances, gift s,
lawsuit settlements, or other funds and
yet not lose her eligibility for certain government
programs. Th ere are two main
types of special needs trusts that can be
applied to settlements and inheritances:
the fi rst-party trust and the pooled trust.
A fi rst-party trust, designed to hold an
SSI benefi ciary’s own assets, is only available
to those under 65, and therefore
is not an appropriate tool for the elderly
who require government assistance.
A pooled trust is an alternative to the
fi rst-party special needs trust that can be
used for those 65 and older. Essentially,
a charity sets up a trust that allow benefi -
ciaries to pool their resources for investment
purposes, while still maintaining
separate accounts for each benefi ciary’s
needs. When the benefi ciary dies, the
funds remaining in her account reimburse
the government for her care, but a
portion also goes towards the non-profit
organization responsible for managing
the trust. Although pooled trusts are
available to seniors, they should only be
used in specifi c circumstances; depending
on the amount received, joining a
pooled income trust can trigger a penalty
of up to three years for SSI benefi ts
that can adversely impact the benefi ciary.
Another option available to shield settlements
and inheritances are ABLE
accounts. ABLE accounts are tax-advantaged
accounts which are not countable
resources by any of the means-tested
government benefi t programs. Th e
SSA does not impose a transfer penalty
for creating ABLE accounts aft er age
64. However, there are some drawbacks
related to ABLE accounts. First, ABLE
accounts can only be set up by a client
who had a disability prior to turning 26,
although the disability does not have to
have been diagnosed until much later.
Second, there is a maximum of $15,000
that can be contributed to an ABLE
account annually, and am ABLE account
can only hold up to $100,000 in total
without hurting an SSI benefi ciary’s eligibility,
so these accounts would only be
helpful in the case of smaller inheritances
or settlements. Finally, because ABLE
accounts are fairly new, the way in which
they are treated by Medicaid, specifi cally
regarding the aged population, remains
somewhat unknown at this time.
It is important to note that other government
programs such as Medicare,
Social Security Disability, and Social
Security Retirement are not means-tested,
and do not require asset or income
qualifi cations. Given the complexity
of this fi eld, if an elderly individual
is in receipt of government-issued,
means-tested benefi ts, he or she should
consult an experienced elder-care attorney
knowledgeable about how an inheritance
or settlement can impact both
Medicaid and SSI benefi ts.
Ronald A. Fatoullah, Esq. is the founder
of Ronald Fatoullah & Associates, a law
fi rm that concentrates in elder law, estate
planning, Medicaid planning, guardianships,
estate administration, trusts, wills,
and real estate. Eva Schwechter is an elder
law attorney with the fi rm. Th e law fi rm
can be reached at 718-261-1700, 516-
466-4422, or toll free at 1-877-ELDERLAW
or 1-877-ESTATES. Mr. Fatoullah
is also a partner advisor with Advice
Period, a wealth management fi rm that
provides a continuum of fi nancial and
investment advice for individuals and
businesses, and he can be reached at 424-
256-7273.
RONALD FATOULLAH
VESQ, CELA*
In fact, a lack of funding accounts
for 47% of cuts to middle school sports
programs, the survey revealed.
A multiyear program known as
“Mission Tiger,” launched by Kellogg, is
committed to helping save middle school
sports. Th e initiative started with a $1 million
commitment to DonorsChoose.org
to fund projects big and small at schools
in need. Professional athletes passionate
about youth sports, including Olympian
Julie Ertz, are teaming up with the program
to help underfunded programs. Th e
pro-soccer midfi elder teamed up with
Mission Tiger to help a school inspire its
students’ dreams both on and off the fi eld
by donating new equipment, including
soccer balls, cleats, shin guards and more.
“Growing up, I learned numerous skills
from sports, skills that applied not only
to athletics but to my everyday life,” Ertz
said. “Th is is one of the many reasons why
I joined the Mission Tiger team - we’re not
just giving kids the opportunity to play
sports, we’re giving kids the opportunity
to develop benefi cial skills that can positively
impact the future of today’s youth.”
Consider these benefi ts of youth sports:
• Teamwork: Sports teach kids the advantages
of working together toward a common
goal. Th e ability to collaborate with
peers, including those outside a child’s
immediate circle of friends, is a skill that
provides benefi ts through adulthood.
• Character: Learning how to accept wins
and losses gracefully isn’t just good
sportsmanship, it’s a life lesson. A playing
fi eld puts these lessons to use so kids
can practice empathy and other social
interactions in a comfortable setting.
• Fitness: Sports are a fun way to get
kids moving, and this increased physical
activity helps build healthy bodies and
reduces the risk of diseases. From cultivating
a healthy heart and lungs to helping
prevent high blood pressure and,
ultimately, heart disease, regular physical
activity provides numerous health
benefi ts.
• Discipline: While free play has its place,
kids also need structure and boundaries.
Sports come with rules, and kids
naturally learn through positive reinforcement
(scoring points or winning a
game) and consequences (getting a penalty
or losing).
• Academics: Studies reveal that physically
active children score higher on tests
and are more likely to go to college,
according to research published by Th e
Aspen Institute. Sports help reinforce
learning concepts and habits like repetition
and problem-solving. Th ose skills,
along with the sense of accomplishment
that comes with learning, are transferable
to the classroom setting.
— Courtesy of Family Features
/WWW.QNS.COM
/DonorsChoose.org
