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| Tom Madden
November 27, 2012
7:40:25 PM
Entry #: 4017645
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Click here to view this e-newsletter in your web browser Volume 9, Number 9, November 2012
Practice AreasAttorneysWorkshopsIn PrintContact Us
In This Edition:
Working While Receiving SSI
7 Ways to See if Your Child's IEP is Actually Being Implemented
Tax Planning in a Time of Uncertainty
Elder Law: Long-term Care Insurance, New Strategies
Upcoming Events
Staff Profile: Emily Agens
Staff Board Appointment: Andrew Linenberg to Jewish Children and Family Services of South Jersey
Working While Receiving SSI
By: Hinkle, Fingles & Prior, Attorneys At Law
As adults, we work not only to sustain our lifestyle but to enrich our lives and contribute to society. Our work provides a sense of purpose and accomplishment. In fact, much of our identity is linked to what we do to earn a living and how we choose to do it. Individuals with developmental disabilities experience the same benefits from working. Unfortunately, they often forego employment for fear of losing their Supplemental Security Income (“SSI”) benefits. The question often arises: “Can I still receive SSI if I work?”
The simple answer is 'yes.' But in the world of disability nothing is as simple as it seems. An individual may work, but he or she must understand how working affects SSI benefits.
Q: What is SSI?
A: SSI is a federal program that provides cash benefits to adults and children with disabilities who have limited income and resources.
Q: What effect does earned income have on SSI benefits?
A: The calculations of a monthly benefit amount are easier to understand in an example.
Let us assume that John works and earns $500 per month, and that John receives $698 per month from SSI. The first $20 John earns will have no effect on his SSI benefits. This is a general income exclusion that is applied to either earned or unearned income. It is important to note that unearned income (such as SSDI) will also affect SSI benefits.
The next $65 John earns will have no effect on his SSI benefits. This is the earned gross income exclusion. The Social Security Administration (“SSA”) deducts the general income exclusion and the earned income exclusion from John’s earnings from employment.
John's remaining earnings of $415 are divided in half. The resulting amount of $207.50 is deducted from his SSI benefit amount of $698, so John will receive $490.50 in SSI benefit.
Combine John’s SSI benefit with his earnings, his total income a month would be $990.50. Therefore, there is an incentive to work when receiving SSI.
However, there is a point when John’s earned income would cause him to lose his SSI benefits. This would happen if for purposes of the SSA John is engaging in substantial gainful activity (“SGA”). In 2012, an individual engages in SGA if he earns $1010 per month.
Q: How do “Impairment Related Work Expenses” impact SGA?
A: Impairment Related Work Expenses (“IRWE”) refer to services required by an individual with a disability in order to maintain employment. The SSA calculates SGA by deducting the cost of IRWE from the total amount earned. To be deducted, the IRWEs must be paid by the individual with a disability, not by any government program or by a family member. For example, certain transportation costs, medical or non-medical devices, diagnostic procedures, attendant care services, routine drugs and medical services may be deducted. For example:
Let us say Mary is employed and earns $1,200 per month. If the full amount earned is considered, the SSA would determine that Mary is no longer disabled because she engages in SGA. However, in order for Mary to sustain her employment she requires the support of a job coach. The job coach costs $400 per month and Mary directly pays the job coach. The SSA will deduct the cost of the job coach from Mary’s earnings, determining that Mary earns $800. Therefore, Mary will still be deemed eligible for SSI. Of course, her benefit amount will be decreased as explained in the first example, but she will not completely lose her SSI benefits.
Q: What is the Student Earned Income Exclusion?
A: To be eligible for the Student Earned Income Exclusion (“SEIE”) the individual with a disability must be a student under the age of 22 who “regularly attends school” (e.g. takes at least 8 college credits). This exclusion allows the first $1,700 of the student’s earnings per month to be excluded for purposes of SSI, which means it will not be counted toward the calculation of the SSI benefit amount. The maximum yearly exclusion under SEIE is $6,840. SEIE is applied before the general income exclusion or the earned income exclusion described above.
Q: What is Plan to Achieve Self-Support?
A: Plan to Achieve Self-Support (“PASS”) is another government program to help disabled individuals return to work. PASS permits the individual with a disability to set aside earnings or resources to help pay for things or services related to a specific work goal. This money will not be counted towards monthly SSI benefit calculations as well as housing assistance eligibility and food stamps. Examples of qualified expenditures related to a specific work goal include vocational training, purchase of supplies to start a business, school expenses, and transportation.
These exclusions and programs allow individuals with disabilities to work and continue to receive SSI benefits. Therefore, individuals with disabilities should be mindful of the SSI eligibility criteria, but should not forego working because they fear losing their benefits.
Social Security laws are complicated and are subject to change. It is, therefore, always advisable to seek competent legal advice before simply accepting any change or loss of benefits.
7 Ways to Check to See if Your
Child’s IEP is ACTUALLY Being Implemented
By Hinkle, Fingles & Prior, Attorneys At Law
The first marking period is coming to a close, meaning that the school year is already one quarter through, but do you really know if your child’s Individualized Education Plan (“IEP”) – the one you worked so hard on – is actually being implemented properly?
Here are a few ways to check:
Ask for Progress Reports from the Child Study Team, so that you can compare them to the goals and objectives in the IEP.
Ask to see your child’s daily, weekly and monthly schedule. Compare this to the IEP. Does your child have the requisite number of hours and sessions with related services providers?
Has your child been experiencing increasing issues with academics, social skills, self-help skills, speech / language skills, physical therapy, occupational therapy, behaviors? If so, this may mean that the IEP is no longer appropriate in light of your child’s changing needs or that the IEP is appropriate as written but that it is not being properly implemented.
Has there been a decrease in your child’s ability to use the skills he or she has learned at school at home and in the community? If so, the IEP may not be being implemented in a way that allows your child to “generalize” skills.
Ask to observe your child for part of the day. Check your child’s schedule to see that it is being followed.
Ask the teacher for hard copies of materials your child works on or a bi-weekly or even weekly summary of what your child will be completing in school so that you can see how instruction is related to IEP goals.
Request an IEP meeting to check the status / progress of the IEP and whether it is being implemented. This request should be made in writing to the Child Study Team. The district must then provide an IEP meeting within the regulatorily-created timeframes (e.g., within 20 days in New Jersey).
Tax Planning in a Time of Uncertainly
By Hinkle, Fingles & Prior, Attorneys At Law
You may have heard or read about the "fiscal cliff" in the media recently. This has to do with anticipated potential changes to the tax code. Regardless of whether Congress acts or does not act, there will be changes to the tax code effective January 1, 2013. Although the changes are not fully known, it is likely these changes will impact the tax planning aspect of your Wills and trusts. As a result, now is the time to revisit your estate plan to insure it effectively minimizes the tax burden on your estate.
Elder Law: Long-Term Care Insurance, New Strategies
By Hinkle, Fingles & Prior, Attorneys At Law
According to a recent article in the Wall Street Journal, the cost of long-term care insurance will increase and the approval processes will become more difficult as more major insurance companies cease offering these policies. Insurance companies have cited the uncertainty surrounding future claims and low interest rates as the most common reasons for discontinuing the sale of long-term care policies.
Medicare and major medical policies cover nursing home care only on a short-term basis. Medicaid will pay for long-term care however, eligibility for Medicaid is limited to people with limited assets. Therefore, most people will either pay for nursing home care themselves, divest themselves of assets in order to achieve eligibility for Medicaid before the need for nursing home care arises, or purchase long-term care insurance.
Ideally, a long-term care policy should have an unlimited duration, a large daily payment rate and a high inflation protection rider. The age of the applicant and the policy limits are two of the critical factors that determine the amount of the long-term care premium. For example, the more generous the benefits or the older the applicant is when applying, the higher the annual premium will be. Moreover, a potential applicant who waits too long to apply risks becoming uninsurable.
The cost of nursing home care continues to rise steadily each year. Instead of relying on long-term care insurance to pay the total cost of nursing home care, another option is to purchase a policy with fewer benefits that offsets only a portion of the total cost of care. This allows individuals to preserve their personal assets and, and at the same time, it increases the possibility that individuals will have assets to leave to their heirs. While the policy benefit limits would be lower, so would the policy premiums. There are also hybrid products available that combine life insurance with long-term care insurance. These types of policies sometimes require a larger up-front premium but they guarantee a payment to heirs if little or no long-term care is utilized.
As with all insurance, it is always wise to shop for long term care insurance through reputable agents and to compare the cost of the policies with several companies. It is also important to consider purchasing fewer benefits in order to reduce the premium payments.
When planning estates, particularly for clients age 50 and older, it is critical to weigh the advantages of long-term care insurance versus the impact of privately paying for such care.
Upcoming Events:
The Family Support Center of New Jersey
presents
A Three-part Webinar Series
Featuring the attorneys at Hinkle, Fingels and Prior
Remaining are as follows:
Redefining Autism: Legal and Clinical Implications of the New Diagnostic Criteria
Wednesday, November 28, 2012?, 7:00 - 8:30 p.m.?
Click here to register
Housing: "Creative Options for Housing, Funding and Support Services"
Wednesday, December 5, 2012?, 7:00 - 8:30 p.m.?
Click here to register
Changes to New Jersey's Service Delivery System for Children with Developmental Disabilities
Wednesday, December 12, 2012, ?7:00 - 8:30 p.m.?
Click here to register
Special Olympics New Jersey
and Hinkle, Fingles & Prior
present
Creative Housing Options
Using Self-directed Residential Services:
A legal and practical perspective
Presenters: S. Paul Prior, Esq., Maria Fischer, Esq. and Dinah Fox
Hinkle, Fingles & Prior will provide an understanding of the legal landscape of self-directed residential services
Ms. Fox will share the story of how she used self-directed residential services in conjunction with other resources to provide an appropriate supervised living arrangement for her daughter. Ms. Fox will give practical parent-to-parent advice and answer questions.
Workshop will be held at the
Special Olympics New Jersey Complex
3 Princess Road
Lawrenceville, New Jersey
609-896-8000
To REGISTER contact Susan Colacello at scc@sonj.org
This is the first in a series of workshops by Special Olympics New Jersey and Hinkle, Fingles & Prior, Attorneys at Law, on creative housing options. These workshops are imperative for anyone interested in self-directed services and are appropriate for parents of a child with disabilities across all age groups.
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