Building a Firm Foundation:Special Needs Trusts and Other Unique Planning Issues

Presenters: Steven C. Rhatigan, Principal – Archer Consulting Lisa L. Wilson, Partner – Hayes & Wilson, PLLC

Client Liaison: Michael Larson, Client Liaison

Saturday, April 15, 2023

1717 St. James Place ■ Suite 205 ■ Houston, Texas 77056 ■ 713.572.1717 Main 1054 Canal Blvd ■ Suite 2 ■ Thibodaux, LA 70301 ■ 985.227.4019 Main

Complex Issues Require Competent Counsel

Trustee

Caregivers

Child

Risk Management

Bank/ Financial

After Tax

DI Ins

Life Ins

LTC

Residential

TPAM

Special Needs Trust

Wills

POA Tax

Federal

State

Transition

Letter of Intent

Estate Plan

Investment Solutions

Tax-Deferred

Benefits

IRA

401K

Trust Advisor

Medical Directives

Home Care

Community

Legal

Letter of Instruction

Pensions Trustee

Retirement Plan

Family Crisis Plan

Lifetime Care Planning Board

CPA

RealEstate

BusinessInterests

Trustee

Tax Planning

Crisis Management

Maximize Benefits & Resources

Technical Review

Financial Dynamics

Lifetime Care

PlanningAdult Life Navigation

The Integrated Approach

The Integrated Approach

A will to manage your probate estate, to name an executor and to nominate a guardian.

A Special Needs Trust to protect all the funds to support the beneficiary and allow for continued benefit eligiblity.

Estate Management Documents:

Durable Power of Attorney

Healthcare Power of Attorney

Directive to Physicians

The Legal Plan

The Special Needs Trust

What is a trust?

How is a Special Needs Trust

different?

When do you fund it?

Can you make changes?

What happens to what’s left when

my child passes?

Step 1Clearly express your intent in your trust and related documents.

Why is expressing intent so important? • Many of the public benefits that are critical to disabled persons restrict any control over

trust assts. • A well executed estate plan is going to clearly state your intent so that in the event that a

future Trustee who does not know you is administering the trust, it will be clear what is expected.

The Special Needs Trust Design and Management Process

Step 2Choose a management system and team to carry out your intent

Choose a management system and team to carry out your intent -Divide the duties into three categories• Financial:

- Can wisely invest and conform to all statutory fiduciary requirements - Understands taxes

• Personal including advocacy, care management , benefits - Must Understand public benefits and maintain currency with law - Will use discretion in the best interest of the disabled beneficiary - Can identify second rate services or abuse• Accountability

- Keeps perfect books- Carries insurance, is bondable or has deep pockets- Is immortal

Step 3 Develop a cash flow projection to fulfill your intent

Step 4 Develop a funding plan to match the cash flow projection

Step 5 Update and review steps 1-4 periodically

Primary Trustee Tasks:

• Invest assets in a tax efficient method

• Distribute needed support payments

• Report taxable activity to the IRS

• Co ordinate with other caregivers, and

• Abide by Social Security, IRS and Trust rules.

The Trustee

Major risk factors using family

trustees:

• Financial misconduct• Conflict of Interest• Financial mismanagement

Risk Factors

The best choice may be a Professional Trust Company

to avoid these problems.

Beneficiary

Guardian Trustee

CPATrust Asset

Manager

CPA

Large Tax Consequence• High Asset Turnover

-Mutual Fund Level-Portfolio Level

Asset Management Fee• High Mutual Fund Cost

Ongoing Costs

Special Needs Trust Design and Management Process

TPAM

Consider a better way…

Beneficiary

GuardianTrust Advisor

Corporate Trustee

Tax Accounting

Trust Management

Tax consequence minimized

Corporate Trustee Fee• Bundled Cost• Bundled service

Corporate Trustees take advantage of experience and economies of

scale

TPAMCPA

Other Benefits to this Type of Trust Management Architecture

Beneficiary

GuardianTrust Advisor

Corporate Trustee

TPAMCPAAs the advocate

for the Beneficiary-- the Trust Advisor can fire the Corporate Trustee

Third party asset manager

Other Benefits to this Type of Trust Management Architecture

Amateur TrusteeProfessional

Trustee

If You Need A Little Guidance --

Action Step

Call for a no obligation meeting at our offices.

We will spend an hour or so, at no cost, to listen to your unique story to better understand your goals and needs.

You will also have the opportunity to be fully briefed on the extent of our services and how we might work with you to design, implement and maintain your lifetime care plan.

We will provide you with all the information required to make an educated decision on your next steps.

1717 St. James Place ■ Suite 205 ■ Houston, Texas 77056 ■

713.572.1717 Main 1054 Canal Blvd ■ Suite 2 ■ Thibodaux, LA 70301 ■ 985.227.4019

Main

Thanks again to Lisa L. Wilson

Thanks for attending and we look forward to hearing from you in the near

future.

Archer ConsultingInnovation + Experience

ArcherConsulting.com(713) 572-1717