By:  Stephen R. Elville – Managing Principal and Lead Attorney – Elville and Associates, P.C.

 Championing the Voices (hereinafter referred to in this brief article as “the film” and/or “CTV”) is a documentary and instructional film currently in production by Elville Studios, LLC about Supported Decision Making (“SDM”), the concept that persons with disabilities can (and should) make their own decisions and self-determine their own lives to whatever extent is possible, provided they have the support to do so.  This film had its genesis several years ago after I met and participated in a joint presentation with Megan Rusciano, an attorney with Disability Rights Maryland, at the ARC of Frederick.  Megan is a tremendous advocate for persons with disabilities who previously worked in British Columbia where supported decision making is part of the legal and societal fabric.  Megan’s presentation at the ARC, introducing the supported decision making concept, including SDM as an alternative to guardianship, inspired me to launch the production of CTV, initially as a tool to assist Megan in her efforts to influence the public and eventually the Maryland Legislature to pass a supported decision making bill (at the time, SDM was law in only these handful of states: Alaska, Indiana, Texas, Wisconsin, Delaware, and the District of Columbia), and now (post-COVID-19) as both an educational and promotional tool for legislative passage of a supported decision making law in Maryland, and as an important instructional expose about the full and complete benefits and broad application of supported decision making.  Although the COVID-19 disaster temporarily stopped the production of CTV after pre-production began in 2019 and actual filming started in early 2020, production of CTV resumed this fall.  

The reason(s) for this article and urgent call for volunteers is as follows:

1. Supported decision making now appears to be closer than ever to being passed into law in Maryland (mainly due to the dedication and herculean efforts of Megan).  New draft legislation is being finalized for consideration in the 2022 Maryland General Assembly Legislative session;
2. Megan’s concern is not only about passage of a new supported decision making law (the important first step), but that after passage the legal application of SDM not be “pigeonholed” or limited in practical application due to a lack of education on the part of the public, banks and other institutions, attorneys, courts, facilities (more), and instead that the supported decision making concept, to whatever extent contemplated by the new law, be broadly applied in all its intended aspects, so that supported decision making’s promise and potential for the highest and best use and benefit for all persons with disabilities be realized;
3. With supported decision making’s new momentum in Maryland (there is sponsorship support for the new Bill, support in the Maryland Judiciary, and new legislative passage of SDM laws across the U.S. in other states) there is increased urgency for completion of CTV.  This will involve the following (list not exclusive):  continued fundraising and promotion of the film; project management, including scheduling, public relations, website maintenance, equipment maintenance and purchases, and general administration; video production interviews of at least 25-35 more participants; film production crew travel to several states, including Alaska, Indiana, Texas, and New York (United Nations); post-production (editing and final cut); distribution and release; post-release promotion and strategic use; and operation of a CTV information center for on-going public education and resource hub;
4. Hundreds and thousands of persons with disabilities, parents and families of persons with disabilities, along with advocates, friends, and supporting organizations, including the ARC (national and local) in Maryland and across the U.S., are awaiting the passage and broad application of supported decision making so that persons with disabilities can have more autonomy and control over their own lives and that all lesser-restrictive alternatives to guardianship are explored prior to the implementation of guardianship; and that state government, attorneys, and the judiciary view and utilize SDM as the broad legal tool it is intended to be.  This process can only occur (and be expedited) through education.  Currently there are few, if any, creative, compelling, and impactful visual or recorded media for the promotion of supported decision making and its application.  CTV is a much needed and urgent project, and time is now of the essence; and 
5. As with all independent films, funding is essential for the success of CTV.  Currently the budget for CTV is $50,000 U.S. dollars.  Donations, pledges, and an organized fundraising campaign are needed on an immediate basis.   

Currently CTV film project volunteers are needed for the following:

• Fundraising and promotion;
• Website and database management;
• Public relations;
• Executive Producer;
• Scheduling and project management;
• Equipment organization and maintenance;
• Film crew;
• Editing and post-production; and
• More

If you are interested in becoming a volunteer participant in this important film project that has the potential to impact thousands, and likely hundreds of thousands of lives, across Maryland and across the country, please respond as soon as possible by sending a message with your name, contact information, and interest, to the following email address:  elvillestudiosllc@gmail.com. 

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By: Shannon Werbeck – Associate Attorney – Elville and Associates, P.C.

In initial consultations with clients, one of our main goals, among other things, is to determine which type of estate plan will best suit a client. The two main types of estate plans are a Last Will and Testament or a Revocable Living Trust. Once we determine which estate planning tool would best meet a client’s needs, we further customize and build on the plan based on the client’s current assets, goals and needs. Not every estate plan is alike and designing an estate plan can become overwhelming for a client – that is why we as attorneys are here to advise each client in a direction that will best suit their needs!

Most people are familiar with what is called a Last Will and Testament. A Last Will and Testament is a document that dictates what you want to happen with your assets and property at death as well as who you want to handle your affairs (your personal representative). It is only relevant to assets that do not contain a beneficiary designation and that are not jointly owned with a spouse or third party at death. If you own assets jointly with a third party or own assets individually but said asset contains a properly completed beneficiary designated (such as life insurance, 401(k), IRA, etc.), then at death your assets will be owned solely by that person. 

A Last Will and Testament controls assets that do not fall into the category of being jointly owned or beneficiary designated and is therefore considered an individually owned asset with no beneficiary designation. In order for said asset to go from a deceased individual owner to the person meant to inherit the asset (the inheritor), it has to go through what is called probate.  Probate is a court process of administering someone’s estate which has to take place when there is an asset with no living owner and no designated beneficiary. If probate occurs, then the court will inquire as to whether the decedent has a Last Will and Testament which the court will rely on when administrating the probate estate. Through this process your documents are open to the public to view at any time. 

The administration process associated with a Last Will and Testament can take up to nine months, sometimes more depending on the size of the estate. It involves opening an estate with the Register of Wills Office, the probate process, which includes the filing of an inventory outlining what assets are part of the probate estate and allowing time for claims from any possible creditors who you may have owned money, as well as a filing of an accounting to display to the Register of Wills what is taking place inside of the estate. There are also costs associated with probate with the primary cost being payments to the probate court to process your documents, having to pay for professional assistance in filing final tax returns and even retaining the assistance of an attorney to assist with the probate process. 

In some cases, clients wish to avoid probate. Many people have aversion to dealing with the court, the administration process or do not wish to have their documents open to the public eye. When an individual is motivated to avoid probate – that is when a discussion regarding a Revocable Living Trust plan occurs.

A Revocable Living Trust is essentially a substitute for a Last Will and Testament, and it accomplishes the goal of avoiding probate. It does not give asset protection or avoid taxes unless further estate planning is conducted. A Revocable Living Trust is similar to a Last Will and Testament in that it is an estate planning tool that designates the distribution of your properties and assets at death and the person(s) you wish to take care of the administration process (your successor trustee(s)). However, unlike a Last Will and Testament, a Revocable Living Trust comes into existence the moment it is created and is therefore relevant during life and at death. While you are alive, you are the grantor, initial trustee and beneficiary of your Revocable Living Trust and although your assets and properties will be aligned to the trust, you still have the ability to change anything in regard to your tax filings and have control over your money or ability to sell your properties – you are free to do whatever you want with your assets. Another way to view a Revocable Living Trust is as a “contract” that you sign and enter into with yourself as the initial trustee. You can change the terms of the “contract,” revoke it, restate it and amend it. 

After a Revocable Living Trust is signed, we help you through a process called asset alignment, where our firm carefully reviews your assets and properties with you and ensures that certain assets and properties are properly titled to be owned by your Revocable Living Trust. While alive, there are two ways in which your assets will be held when doing a Revocable Living Trust Plan: 

1. Inside of your Revocable Living Trust where we help you change the owner of your assets and property, including but not limited to: your properties, cars, savings accounts, and Tangible Personal Property (jewelry, furniture, etc.).

2. Outside of your Revocable Living Trust which includes your beneficiary designated assets, such as your 401(k)/IRAs and life insurance.

Asset alignment is a very important part of Revocable Living Trust planning. Signing a Revocable Living Trust in combination with asset alignment is what avoids probate. If this process is not conducted, then a client is essentially creating a more enhanced and expensive Last Will and Testament that will have to go through probate. Since assets will be owned by the Revocable Living Trust and not by an individual, there will not be anything required to go through probate and there will be no court involvement. 

At your death, your Revocable Living Trust will become irrevocable and your successor trustees who you have named within the document will privately carry out the terms of the trust. 

The reality is there is going to be cost and effort with either plan. With a Revocable Living Trust, the cost and effort are upfront so that there is less cost and effort at death, as there would be with a Last Will and Testament. A Revocable Living Trust is seen as being more streamlined and cost-effective in the long run than a Last Will and Testament with the court process of probate. The additional cost upfront for a Revocable Living Trust is attributed to the complicated process associated with a Revocable Living Trust which requires more work and effort during life so that in turn there will be less cost and effort required by your designated successor trustee at your death.  

A Revocable Living Trust might not be the best option for everyone at this time, which is completely understandable. Our job is to advise clients what we believe is best for each individual or family. With that said, estate planning documents are not meant to last forever and should be reviewed frequently as assets, the people in our lives and Maryland law are forever changing.  No matter what plan you decide on, our firm always ensures that your assets will flow properly during life and upon your death through your estate plan and that your documents, a Last Will and Testament or Revocable Living Trust, will best suit your estate planning goals and needs. 

Shannon F. Werbeck is an Associate Attorney with Elville and Associates and an integral member of the firm’s busy Estate Planning Department. She educates and counsels clients through the entire estate planning process – beginning with the initial consultation, followed by the design and implementation of their plans, as well as the necessary maintenance and updating of their planning as changes occur in the laws and their lives. Shannon may be reached at shannon@elvilleassociates.com, or by phone at 443-393-7696 x148. 

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One of the most important roles in a special needs plan is that of special needs trustee, the person who administers a special needs trust (SNT). Of a special needs trustee’s many responsibilities, record-keeping is perhaps the most crucial. Because the special needs trustee is managing accounts on behalf of someone else, every decision must be recorded with a paper or digital record. Here’s a detailed look at the types of records the special needs trustee must maintain. 

Tax documents 

From the creation of the SNT, the special needs trustee is responsible for notifying the IRS about the formation of the trust and arranging to have a tax ID number assigned to it. Going forward, it is the trustee (not the parents or guardians) who files and prepares annual tax returns, and makes sure that any taxes due are paid. 

Bookkeeping records 

The special needs trustee must keep a thorough accounting of any funds entering or leaving the trust. These include payments to service providers such as therapists and teachers, fees for special education, living expenses, as well as reimbursements to third parties who incurred expenses on the care and support of the beneficiary. Receipts, paid invoices, and canceled checks for all trust-related expenses must be retained by the special needs trustee. 

Correspondence 

All communications with trust beneficiaries, donors, family members, and professionals such as accountants, attorneys, and investment advisors must be documented, including emails and telephone conversations. 

Official communications 

These include financial documents such as bank statements, quarterly reports, confirmations, tax returns, and audits, as well as annual statements from insurance providers, health plans, and any legal notices. Especially important is correspondence relating to the trust from government agencies and benefits programs such as the Social Security Administration (SSA), Medicare, and Medicaid, which must be properly documented and filed. 

Maintaining thorough records is important for several reasons. First of all, it helps the special needs trustee do a thorough job, especially at tax time or when the family wants a detailed accounting of the SNT’s activities. Good record-keeping is also a safeguard if the beneficiary wants more information or challenges the management of the trust in the future, and it protects the special needs trustee from liability in a legal dispute. Other government entities such as the IRS or the SSA may require detailed records from previous years to evaluate benefits or conduct an audit. 

Trust distributions 

Because SNT trustees typically have complete discretionary authority with respect to trust distributions, it is imperative that special needs trustees keep a record of their due diligence in approving a distribution.  They should also help prepare a spending plan for the beneficiary, which will show that the trustee has carefully considered the beneficiary’s needs with regard to discretionary distributions. Each decision to make a distribution should include a written record of what steps the trustee performed to ensure his or her discretion was properly exercised. These documents may include such things as beneficiary’s bank statements, credit card statements, pay stubs, or other employment information, invoices, proposals, and any other information given to you to justify a request for a distribution. 

If these duties seem too onerous or time-consuming for you, consider hiring a professional to serve as special needs trustee or co-trustee to take on this part of the work. And as with any aspect of planning for a dependent with disabilities, be sure to first consult with the special needs planning attorneys at Elville and Associates, who can outline all the trustee’s record-keeping responsibilities and answer any questions that may arise. 

To schedule a consultation, please fill out our contact form here or reach out to our firm’s Legal Administrator, Mary Guay Kramer, at mary@elvilleassociates.com, or at 443-741-3635. 

#elvilleeducation 

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By: Duncan Scott Keir – Associate Attorney – Elville and Associates, P.C.

As a civil litigator who has spent his career representing clients before the Maryland State Courts, it is clear to see the impact the COVID-19 pandemic has had on the routine administration of this institution.  Beginning on March 16, 2020, when Judge Barbera, the Administrative Judge for the entire State Court system, first issued the first Administrative Order on Statewide Judiciary Restricted Operations Due to the COVID-19 emergency, the Courts have labored to find new ways to implement the administration of their daily dockets related to guardianship and civil litigation.  Many of these methods are now very familiar, especially the use of Zoom and other video conferencing platforms.

As it has with all of us, the COVID-19 pandemic has meant a lot of changes for clients dealing with civil litigation, guardianship as well as attorneys. Delays of course were some of the most immediate repercussions.  Guardianship and civil litigation cases that usually would take a year took three.  I had several divorce cases that were close to trial when the pandemic hit which ended up being pushed back for another year.  Not only were there delays with scheduling, but also relating to the clerk’s office.  Where many attorneys and staff used to have some idea of who to call to get a specific question answered, or to hopefully push forward a particularly sensitive matter, we could no longer get in touch with anyone.  It was like not knowing how to do your job anymore.  When clients would ask about timelines, I had to admit that I did not know. 

But like everyone else, as time marched forward, so did the Court.  Routine hearings, preliminary matters, and uncontested matters were set via Zoom or other video conferencing platforms.  At the beginning, we got to see judges in polo shirts sitting in their kitchens, and I for one started to see the benefit of transitioning to remote operations for many types of matters. 

Guardianship cases are a clear example of the benefit of remote access.  When clients file a guardianship case for a loved one that is uncontested – when no one objects and all stakeholders support the petitioner as guardian – the final hearing is typically succinct and a routine affair.  Pre-COVID, parties would drive to whatever county Circuit Courthouse, meet their lawyer there, wait around – sometimes for hours – as the Court worked through its docket and eventually spend five minutes answering a few questions before leaving with its Guardianship Order and a word of support from the bench.  The whole matter could take hours – for which I am obliged to bill.  Now, the uncontested guardianship matters are set via Zoom.  In fact, while in the past I typically attended several guardianship hearings per month, I have not attended one in person since 2019.  Now, the parties can sit in their homes or offices while they wait to be called.  I can stay at my desk and work on other matters right up to the time our case is called.  This means the client gets charged less for the same work, and I have more time to attack my caseload. 

In addition, the parties often significantly benefit from a remote hearing because it allows them to maintain their presence in their home during the proceedings.  When a guardianship petition is filed, the Court appoints an attorney for the alleged disabled person (the “ADP”).  This is done in every case.  Court-appointed counsel meets with the ADP and ascertains their wishes, represents their interests, and often acts as their spokesperson as the case moves forward.  If the ADP does not want the guardianship, their counsel can object, ask for a jury trial, or otherwise advocate on their client’s behalf.  However, most guardianships go uncontested.  Parents file guardianships of their disabled children who have turned 18, and adult children file guardianships over their elderly parents who have lost the ability to care for themselves.  In most instances, the need for the guardianship is clear, the petition is well supported by credible medical professionals, and the court-appointed counsel is in agreement that the petitioner should become the guardian. 

Many of the petitioners are also the primary caretakers for their disabled loved ones.  Oftentimes, the ADP is not able to be left alone, and many families struggle to find alternate caregivers while they are out of the home – such as for a court appearance.  The advent of the remote hearing has relieved many caregiving petitioners by allowing them to participate as required by the court in a streamlined and practical way – while remaining present in the home.  It also allows for the ADP to have greater access to the proceedings. By simply sitting next to the Petitioner at the hearing the ADP can view the proceedings, comment as desired, and otherwise be part of the process.

Some petitioners have found benefits in the totally opposite situation.  Many times, especially in the case of a Petitioner who is the child for an elderly or otherwise infirm parent, the parties do not live in the same house – or even in the same state.  In the past, an out of state petitioner would have to travel to Maryland for the five-minute guardianship hearing.  This situation created an enormous burden on many, including time off from work, travel expenses, and the temporal relationship between the time spent in court and the time and expense of travel created a hardship. Further, the Petitioner may themself have physical ailments which make travel very challenging.  The remote hearing has erased many of these issues, causing greater efficiency, lower stress and cost, and allowed for the more efficient administration of these meritorious proceedings.

Attorney Duncan Scott Keir leads Elville and Associates’ litigation department, addressing matters ranging from fiduciary and civil litigation to guardianship and contract real estate. 

Mr. Keir’s professional career reflects a commitment of excellence in representing clients both in and out of the courtroom along with developing key strategic partnerships.  This commitment molds well with Elville and Associates’ ideals of client education, ongoing collaboration with its clients and partners, and compassion in working with clients and their families.

Mr. Keir may be reached at duncan@elvilleassociates.com, or at 443-393-7696 x125.

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By:  Shannon K. Mumaw – Associate Attorney with Elville and Associates, P.C.

In general, the modified administration process can seem quite tedious and lengthy, especially since it comes at a point in time that is already very difficult for the people involved. As an attempt to simplify this process as much as possible, the Maryland legislature enacted a statute in 1997 to create the abbreviated procedure known as “Modified Administration.” This novel procedure was codified in Estates and Trusts §§ 5-701–5-710 and is one statutory step closer towards limiting the role of the Register of Wills and the Orphans’ Court in the administration of some estates. However, its application is somewhat limited and only applies in the administration of selected estates. When applicable, it is a great tool to expedite the administration process as its focus is on the prompt closure of an estate and distribution of assets.

Everyone’s first question is – “Which estates qualify for modified administration?”

In order to be able to proceed under modified administration, certain qualifications must be met. If the decedent is testate (passes away with a valid will), all of the residuary legatees named under the will must be individuals or entities exempt from inheritance tax. If the decedent is intestate (passes away with no will), all of the heirs at law must be individuals or entities exempt from inheritance tax. Individuals and entities who are exempt from inheritance tax can be found under § 7-203 of the Maryland Tax – General Article. In addition to being exempt from inheritance tax, all residuary legatees and heirs at law must also consent to a modified administration. A notice of consent must be filed with the Register of Wills in order for the estate to qualify.

If a residuary legatee is a trust rather than an individual person, as commonly seen in what is known as a “pour-over will,” under the current law one would look to the beneficiaries of the trust to determine if each individual or entity is exempt from inheritance tax. If each beneficiary under the trust is exempt from inheritance tax, the estate is eligible for modified administration. The identity of the trustee of said trust is not considered and will not hinder the estate’s eligibility for modified administration. This was not always the case, as it was not until the 2013 statutory amendment that the identities of the trustees were left out of the equation. 

The personal representative of the estate is not limited to any specific class of persons, as the residuary legatees or heirs at law are. There is no requirement that the personal representative must be a residuary legatee or heir at law, nor is there a requirement that the personal representative be exempt from inheritance tax. Note that under a will, only the residuary legatees must be exempt from inheritance tax. This does not include specific bequests. Thus, the existence of specific bequests to friends or relatives who are subject to inheritance tax will not curtail an estate’s eligibility for modified administration.

Additionally, to qualify for modified administration the estate must be solvent, meaning the estate’s assets exceed the estate’s debts. There must be sufficient assets to satisfy all testamentary gifts under the will of a testate decedent.

Your next question may be – “How and when do I elect modified administration?”

An election for modified administration must be filed by the personal representative of the estate within three months of the date the personal representative is appointed. It does not matter how long after the decedent’s passing the estate is opened. The three-month time period will only begin on the date the personal representative is appointed by the Register of Wills (in other words, the date the Letters of Administration are issued). It is important to note that there are no exceptions to this three-month time period as no extensions of time will be granted. If an election for modified administration is not made by the three-month deadline the election will be barred.

It is a prerequisite that the estate be opened and the personal representative be appointed before the election for modified administration can be made. Thus, the election is not part of the initial petition for probate. However, the election may be filed simultaneously with the petition for probate if so desired.

The election can be viewed as consisting of two separate parts, or rather two separate forms. The election form itself must be filed within the three-month time period, and the consents of all residuary legatees or heirs at law, as mentioned above, must be filed within the three-month time period as well. If the election is made by the three-month deadline, but the consents are not filed by the deadline, the election will not be considered valid. If at any time an interested party objects to the modified administration, it will be revoked and the administration will revert back to the administrative probate process.

Now that you have determined whether an estate qualifies for modified administration and how to make the election, your next question may be – “What do I have to do under modified administration and how long is the process?”

Under a modified administration, the only documentation that is required to be submitted to the Register of Wills is a verified final report. The final report must be filed within 10 months from the date of appointment of the personal representative. Thereafter, final distribution of the estate can occur within 12 months of the appointment of the personal representative. Failure to file the final report by the deadline will result in the revocation of modified administration, and the administration will revert back to the administrative probate process.

The duty to report to the Register of Wills under a modified administration is limited extensively in comparison to the administrative probate of a regular estate. Under the administrative probate of a regular estate, the personal representative is required to file an inventory and an information report with the Register of Wills within three months of the appointment of the personal representative. Thereafter, within six months of the inventory and information report being filed, a first accounting is due to the Register of Wills. The first accounting could be a first and final accounting, or it could be an interim accounting with additional accountings due every six months thereafter. It is not until after the final accounting is submitted to the Register of Wills and approved by the Orphans’ Court that the final distributions of the estate may occur. Modified administration abbreviates this process immensely by substituting the inventory, information report, and accounting(s) with the simple requirement of a final report. Additionally, a final report is not nearly as extensive or detailed as an accounting may be.

However, under a modified administration, an interested party may request that a formal inventory and account be provided to all interested persons. If such a request were made, the formal inventory and account would not be required to be submitted to the Register of Wills, it would only be required to be provided to the requesting interested person. Additionally, such a request would not defeat the modified administration election.

Under a modified administration, it is possible to extend the 10-month deadline for filing the final report if needed. With the consent of the personal representative and each interested party, the 10-month deadline may be extended by 90 days if the extension request is filed within the initial 10-month period.

Now you may be asking – “What is a final report?”

The intention of the final report is to provide the Register of Wills with just enough information necessary to assess the statutory probate fee and the inheritance tax, if any may be due from specific bequests. The final report consists of a Schedule A, Schedule B, and – you guessed it – a Schedule C. Schedule A lists all of the estate assets as of the date of death, along with the corresponding values. Schedule B lists all payments and disbursements, which may include any debts, taxes, funeral expenses, administration expenses, etcetera. Lastly, Schedule C calculates the net estate and lists all final distributions that are to be made.

The underlying basis for modified administration is a sense of trust between the personal representative and the residuary legatees or heirs at law. The parties are essentially agreeing that there is no need for the Register of Wills and the Orphans’ Court to keep a close eye on the administration of the estate as they do under administrative probate. Rather, everyone trusts that the personal representative will administer the estate fairly and accurately. If your estate qualifies for modified administration, I highly recommend utilizing this tool to simplify the administration process to make already difficult times a little easier.

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Unique tax benefits are available to families who have children with special needs. And thanks to recent changes in the tax code, there are opportunities to save substantial amounts of money at tax time. Thomas M. Brinker, Jr., a professor of accounting at Arcadia University in Pennsylvania, has put together a handy checklist of some potential tax benefits that could be available to families who care for a special needs child.

This list includes the tax benefits that have been available for a while and incorporates updated information from the Tax Cut and Jobs Act of 2017, the CARES Act (passed in March 2020 for COVID relief), and the American Rescue Plan of 2021 that have a direct impact on families with special needs dependents.

Following are some highlights. The complete checklist is available for download here.

Special education

If the special needs child attends a special school (or is in an institution) for the main purpose of alleviating his disability by using the facility’s resources, the cost of the child’s tuition, lodging, meals, and transportation is deductible, as are the costs of supervision and care. Regular independent schools can be classified as “special schools” if the school has a special curriculum for neurologically disabled individuals, and according to IRS regulations, their tuition costs would be deductible.

If the child is receiving private tutoring by a specialized teacher, the IRS has ruled that those fees are deductible, as are tuition fees for special education provided to dyslexic children.

Services and therapies

Prof. Brinker notes that prescribed vitamin and equestrian therapies are deductible, in addition to other group or individual programs such as art, music, dance, and play, and summer camp. It is crucial to get a doctor’s recommendation as part of the necessary paperwork.

Medical expenses

As Prof. Brinker explains, “Unreimbursed medical expenses are deductible only to the extent that the taxpayer itemizes their deductions (Schedule A) and these exceed 7.5 percent of their Adjusted Gross Income (AGI).” Note that as part of the Tax Cuts and Jobs Act of 2017, the standard deduction was significantly increased, and is $12,550 for individuals and $25,100 for couples in 2021. So only families who expect to spend substantially more than these amounts on medical care for their special needs loved one would benefit from this provision.

For families who plan on itemizing their special needs medical expenses, note that travel costs for medical treatment are deductible as follows: $50 per day of food and lodging for the taxpayer and one other person (if an overnight stay is required), and driving expenses at $.16 per mile.

Also, registration and attendance fees for medical conferences (though not food and lodging) qualify, if the conference topic relates to the condition of the dependent with special needs.

Tax-deferred and tax-advantaged accounts

Parents of children with special needs might consider enrolling in a flexible spending account (FSA) through their employer to pay for qualifying medical expenses that are not reimbursed. For 2021, the maximum annual contribution to an FSA is $2,750, and as a provision of the CARES Act, over-the-counter medications are now eligible expenses for FSAs.

Regarding early withdrawals from qualified retirement accounts such as IRAs and 401(k)s, any distributions spent on deductible medical care (i.e., amounts in excess of the 7.5 percent of AGI threshold) for dependents with special needs are not subject to the 10 percent penalty (though they are still subject to income tax).

Other benefits in Prof. Brinker’s checklist include an expanded definition of a qualifying child, who can be older than 19 if shown to have special needs and lives at home. And revised provisions mean changes to the personal and dependency exemption rates and phase-outs, as specified in the Tax Cuts Act of 2017 and the American Rescue Plan of 2021.

For Prof. Brinker’s checklist, click here.

To ensure you are taking advantage of all the tax benefits and credits available to you, consult with the special needs planning attorneys at Elville and Associates who can guide you through the planning process and ensure your planning works as intended.  Elville and Associates’ attorneys are counselors and will collaborate with you to ensure your loved one with special needs’ needs are fully addressed – ranging from public benefits, to housing, to special needs trusts, Maryland ABLE, and more.  Initial consultations are free and offer peace of mind to families as they navigate the sometimes complex world of planning.  We are here to be a resource to you in any way possible.

Managing Principal and Lead Attorney Stephen Elville, a member of the Academy of Special Needs Planners, may be reached at steve@elvilleassociates.com, or at 443-393-7696 x108.  The firm’s Community Relations Director, Jeff Stauffer, may be reached at jeff@elvilleassociates.com, or at 443-393-7696 x117.

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#elvillewebinarseries

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The year was 1983: The U.S. invaded Granada. A gallon of gas cost 96 cents. Michael Jackson’s ‘Thriller’ video premiered. That year was also the last time that Social Security recipients saw a cost-of-living increase steeper than the one just announced for 2022. This year, Social Security benefits will rise 5.9 percent, the sharpest upsurge for Social Security beneficiaries since 1983’s 7.4 percent jump. 

Cost-of-living increases are tied to the consumer price index, and rising inflation rates and gas prices caused by the ongoing coronavirus pandemic mean Social Security beneficiaries will get a large boost in 2022. The 5.9 percent increase dwarfs last year’s 1.3 percent rise, and over the past decade hikes have averaged just 1.65 percent. The average monthly benefit of $1,565 in 2021 will go up by $92 a month to $1,657 a month for an individual Social Security beneficiary, or $19,884 yearly. 

The cost-of-living change also affects the maximum amount of earnings subject to the Social Security tax, which will grow from $142,800 to $147,000.

For 2022, the monthly federal Supplemental Security Income (SSI) payment standard will be $841 for an individual and $1,261 for a couple.

Part of the increase will be eaten up by higher Medicare Part B premiums, however. The standard monthly premium for Medicare Part B enrollees has not been announced yet, but it is projected to rise $10 a month to $158.30.  And the 5.9 percent increase for Social Security beneficiaries may not be enough for seniors to keep pace with rising health care and prescription drug costs.

“You’re glad that you get a 5.9 percent increase, but it doesn’t feel like you’re getting 5.9 percent when all of your other costs are going up much higher,” said Nancy Altman, president of the advocacy group Social Security Works.

Most Social Security beneficiaries will be able to find out their specific cost-of-living adjustment online by logging on to my Social Security in December 2021. While you can still receive your increase notice by mail, you have the option to get the notice online instead.

For more on the 2022 Social Security benefit levels, click here.

For questions related to retirement planning, estate and elder law planning, contact the attorneys at Elville and Associates to schedule a consultation.  Through their education-based process and focus on collaboration, they will work to ensure peace of mind and work in partnership with your financial advisors to ensure your estate planning works in tandem with the rest of your financial planning you have in place. 

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Posted in Blog | Comments Off on In 2022, Social Security Beneficiaries Will See the Biggest Increase in 39 Years

Presenters:  Ms. Ellen Platt & Dr. Michelle Fritsch

In part one of the Elville Webinar Series’ new Wellness Series, guest presenters Ms. Ellen Platt and Dr. Michelle Fritsch will briefly summarize the last 18 months of the pandemic, discuss how it has impacted us, and how it may impact us going forward.  They will also provide you strategies to help make the best of it.

Featuring nationally renowned speakers Ms. Ellen Platt, a certified Aging LifeCare Manager and Owner of The Option Group, and Dr. Michelle Fritsch, a board certified, doctoral trained health professional and founder of Retirement Wellness Strategies and cofounder of Propel Comprehensive Wellness, this presentation is one you will not want to miss!  

 

More Webinars from Elville and Associates

The education of clients and their families through counseling and superior legal-technical knowledge is the mission of Elville and Associates.  We hold multiple educational events every month. Click to view our calendar of educational webinars and events or visit the Elville and Associates YouTube channel to view recordings of our past webinars.

Posted in Videos & Webinar Recordings | Comments Off on Wellness During Uncertainty

Presenters:  Ms. Ellen Platt & Dr. Michelle Fritsch

In part two of the Elville Webinar Series’ new Wellness Series, guest presenters Ms. Ellen Platt and Dr. Michelle Fritsch will discuss how change is uncomfortable and sometimes disruptive.  They will talk about how these changes can impact your daily functioning and you will be provided with strategies and supports to navigate the disruptions and prevail!

Featuring nationally renowned speakers Ms. Ellen Platt, a certified Aging LifeCare Manager and Owner of The Option Group, and Dr. Michelle Fritsch, a board certified, doctoral trained health professional and founder of Retirement Wellness Strategies and cofounder of Propel Comprehensive Wellness, this presentation is one you will not want to miss!  

 

 

More Webinars from Elville and Associates

The education of clients and their families through counseling and superior legal-technical knowledge is the mission of Elville and Associates.  We hold multiple educational events every month. Click to view our calendar of educational webinars and events or visit the Elville and Associates YouTube channel to view recordings of our past webinars.

Posted in Uncategorized, Videos & Webinar Recordings | Comments Off on Navigating Unexpected Change

As a business grows its needs for additional workers increases. The law regarding employees is complex and often misunderstood or misapplied. Even innocent mistakes can result in disastrous consequences for the employer. Business law attorney Chuck Borek, J.D.,MBA, CPA, of The Borek Group, LLC and special counsel to Elville and Associates covers the following issues in this webinar session:

• Distinguishing employees from independent contractors
• Steps you must take when you hire an employee
• When you must pay an employee hourly and pay for overtime
• The effective use of written employment agreements
• Protections employees enjoy that you may not be aware of

 

 

More Webinars from Elville and Associates

The education of clients and their families through counseling and superior legal-technical knowledge is the mission of Elville and Associates.  We hold multiple educational events every month. Click to view our calendar of educational webinars and events or visit the Elville and Associates YouTube channel to view recordings of our past webinars.

Posted in Videos & Webinar Recordings | Comments Off on Surprises in the Employment Relationship – What You Don’t Know Can Hurt You