3333 S. Bannock Street, Suite 900, Englewood, CO  80110
303-761-4900 

 

   

 Protecting The Rights of the Elderly and Disabled is, and always will be, the Highest Priority at Solem, Mack & Steinhoff, P.C.

     
 

Distribution Strategies To Maintain Public Benefits

 

 

FIDUCIARY OBLIGATIONS

A trustee has certain, so-called, "fiduciary" duties. What this means is that you will be held to a higher standard of conduct than the average person when dealing with matters related to the Trust. In general, you must carry out your duties with care, and never put your own personal interests above the beneficiary's.

Overview of SSI & Medicaid
Trust Distribution: General Rules
Specific Distribution Examples
Fiduciary Obligations & Reporting

For example, you are prohibited from borrowing funds from the Trust or from using any Trust funds for personal benefit (e.g. to pay your own bills, invest in a business in which you are involved, etc.). If ever in doubt over your duties as Trustee, you should seek advice from someone well versed in this area. Depending on the particular circumstances, the loss of Medicaid, for even one month, can be significant and may result in an overpayment.

REPORTING REQUIREMENTS

To the Social Security Administration: The Social Security Administration needs to be provided with general information concerning the existence and operation of the Trust. The SSI program may thereafter require periodic reports reflecting how trust distributions were ultimately made. It will therefore be important for you to keep careful records with respect to the goods, services and payments made from the Trust.

To Medicaid: You should keep the same records you report to Social Security for reporting to Medicaid. Under some circumstances, Social Security may not certify the beneficiary for Medicaid. In that event, you will need to report to Medicaid directly on an annual basis or after there is a change in circumstances.

To the Internal Revenue Service: A trustee is required to file a form 1041-U.S. Fiduciary Income Tax Return for any calendar year in which the Trust earns income in excess of $600 if the beneficiary is not disabled or $3,650 (for tax year 2010) if the beneficiary is disabled (this figure may change annually per I.R.S. rules). If the beneficiary is disabled the IRS should consider this Trust to be a "qualified disability trust." Accordingly, you should consult with a certified public accountant to discuss accounting procedures and income tax filing requirements for the Trust.

For more information, please call Solem, Mack & Steinhoff at 303-761-4900, or contact us through our web site.

  *All consultations are confidential.  Payment plans and credit cards are accepted.
 
 

 

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Solem, Mack & Steinhoff, P.C.
SolemLaw.com
3333 S. Bannock Street, Suite 900, Englewood, CO
303-761-4900

Applying For Medicaid

by Linda Moon

 
 
*All consultations are confidential.  Payment plans and credit cards are accepted.