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Financial Health

for Healthcare Professionals

benefits. Generally, there are assets of that couple.
Specialized Planning two types of SNT: First-Party Titling of assets is a key component of
Special Needs Trusts, and Third- asset protection planning. Depending
Party Special Needs Trusts. upon your state, asset protection planning
Some financial planning situations ing the expenses of caring First-Party Trusts hold assets for dual spouse physicians can be different
require specialized advice. for the special needs per- belonging to the special needs than for individual physician asset protec-
These circumstances in clude families son that considers the person. Examples of these assets tion planning. Titling is crucial because a
with special needs, LGBT, cohabitation, cost of inflation over their include personal injury awards, creditor can only go after the assets of the
divorce, dual physician spouses, and alco- lifetime. divorce settlements, life insur- specific person they have a judgment
hol and substance abuse. Expenses include med- ance proceeds, retirement plans against.
Special needs loved ones can be emo- ical care; special educa- and inheritances. Special needs planning require an expe-
tionally draining on a family. The special- tion support; physical, Third-Party Trusts are trusts rienced lawyer and planner.
ized expertise required to manage their occupational or speech BY HOWARD you create and fund with your
welfare varies by state. It is wise to include therapies; and adaptation WOLKOWITZ own assets to helped a loved one Divorce Planning Considerations
special needs professionals on your team if of the home environment with special needs. These can be With divorce statistics hovering at about
these circumstances apply to you. to their unique needs. current assets like investments or future 50%, “until death do us part” is no longer
Special circumstances require special- Your goal is to assist them with maintain- assets like life insurance policies that will a reliable commitment for planning.
ized thinking and planning ahead, espe- ing a high degree of independence and provide income after the caregivers are Marriages exist with “my” children, “your”
cially when mentally, emotionally, physi- enjoying the life they deserve. gone. These trusts may be funded with a children and “our” children. Planning can
cally, and chemically challenged people are variety of different assets, including life include prenuptials created before mar-
involved. An advisor’s role requires specific Government Benefits insurance. riage and post nuptials, created after mar-
levels of knowledge and experience with A critical difference between traditional A special needs attorney and an experi- riage.
specific disabilities. The right advisor for planning and special needs planning is enced insurance agent should be consult- A prenuptial agreement supersedes state
your particular situation understands the access to government benefits. ed to determine whom the owner and ben- marital law, if prepared properly. Attorneys
laws and strategies required to navigate Government benefits for special needs eficiary should be and if the use of life recommend that each party be represented
through a complicated and exhausting people include access to residential and insurance is appropriate for your specific by his or her own attorney, enter voluntar-
process. Special needs loved ones require medical care facilities that may not be circumstances. ily into the agreement, prepare and com-
qualified legal representation. available through a private program, even plete the agreement well in advance of the
if a client can afford to pay for them. Importance of trustees wedding, and not include unreasonable,
Special Needs Families and successor trustees frivolous, or forbidding terms that would
Families with special needs require suf- Special Needs Trusts (SNTs) Trustees and successor trustees are peo- allow one party to negate the agreement
ficient income to care for family members When you have unique or special needs ple you entrust your children to after you after the fact.
with physical, mental, and emotional dis- to protect, trusts can play an important are gone. They can include trusted family Life insurance can protect alimony and
abilities while simultaneously ensuring the role. A properly drafted Special Needs members, friends, corporate fiduciaries, an child support payments and/or equalize
welfare of healthy family members. A Trust can be created to provide for care attorney, a CPA, a bank or a trust company. distributions in the event of an untimely
detailed budget should be prepared outlin- and services not covered by government Consult your advisors about providing death. For estate planning purposes, spe-
high quality care while preserving the abil- cial estate tax breaks exist only for married
ity to use government assistance programs couples. If your personal estate is greater
when parents are no longer around. Trust than the allotted amount for estate taxes,
planning is a complicated process that work with your advisors to minimize your
requires the assistance of subject matter heirs’ taxable exposure.
experts. And this type of planning will If your income tax bracket drops sub-
continue to evolve and change as laws stantially due to a divorce (because you are
change. now filing separately), speak with your tax
advisor about the pros and cons of con-
Titling of Assets Considerations verting any IRAs you have to a ROTH IRA.
When both spouses are doctors who
share the same patient, malpractice plan- For more information contact Howard
ning needs to be more focused. If that Wolkowitz, Financial Advisor, at
patient obtains a malpractice judgment HWolkowitz@FinancialGuide.com
against both doctors, it may impact the or (954) 558-3673.
doctors’ planning and exposure to a credi-
tor. If husband and wife physicians per- Securities and investment advisory services offered
form a procedure on the same patient and through qualified registered representatives of MML
Services,
LLC.
Investors
Member
SIPC.
a malpractice proceeding results in a judg- [www.SIPC.org] OSJ: 2400 E Commercial Blvd., 11th
ment against both of them, what assets can Floor, Fort Lauderdale, FL 33308. (800)320-4180.
CRN201909-218705
the creditors go after? A creditor can go
after the individuals as well as the joint

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4 November 2017 southfloridahospitalnews.com South Florida Hospital News