One of the most troubling questions the parent of a mental health consumer faces is how to provide for the child after they are gone. Fortunately the law provides many effective instruments to deal with these problems. These instruments were the theme of NAMI-NYC Metro’s June 13th meeting, which was held at the Community Church. There were three speakers at the meeting: attorneys Robert Freeman and Martin Petroff and a volunteer with personal experience Celeste Wallin.
Freeman spoke on how to establish a trust for a mental health consumer. Under a trust arrangement, property is given to a trustee for the benefit of a named party. This allows the recipient to receive income from the trust while the property remains in the hands of the trustee. One type of trust called a Supplemental Needs Trust can be created so that a person’s income will not generally count in determining eligibility for government benefits.
Under a Supplemental Needs Trust a trustee under direction pays out income for the disabled person to supplement their government benefits. The theory is benefits pay for food and shelter while the trust pays for extras such as a television set, a computer or even a vacation. The trust document can spell out what the income can be used for.
There are various types of trusts. A Living Trust is created during the lifetime of the maker of the trust while a Testamentary Trust is established by a will. A Discretionary Trust is set up to protect the beneficiary. It allows the trustee at his discretion to cut off funds to the beneficiary. This is especially valuable for a mental health consumer who is generally stable but who can at times decompensate. During these periods the trustee can cut off funds to the consumer who does not have good judgment.
Dealing with decompensation is a concern of Wallin who is a trustee of a Living Trust established by her father for her siblings. All the children with the exception of Wallin suffer from bipolar disease. She administers the trust in consultation with her siblings but Wallin has the final word.
If a properly drawn trust can provide income for the mental health consumer there are legal documents that can protect the person if they become incompetent to manage their own affairs. Petroff discussed Advance Directives documents where a person states what kind of medical treatment they want to have when they become incompetent to manage their own affairs. There is a psychiatric Advance Directive but it is very new and it is not clear how the courts will honor it in issues involving involuntary treatment and commitment. As part of the Advance Directive a healthcare proxy should be created as well. The proxy or agent is authorized to make healthcare decisions when the person is incompetent. Parents may want to also create a power of attorney for a consumer. Under a power of attorney, an agent is created to manage financial affairs.
After the meeting, a lively question period was held. There, the speakers stressed the importance for parents to have a plan to protect the consumer. It is wise to consult a lawyer in drawing up the plans. The meeting provided valuable hope to parents and other relatives of mental health consumers. They now have solid information to plan for their child’s future.
Saturday, November 26, 2011
Providing A Future
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Saturday, November 26, 2011
Providing A Future
One of the most troubling questions the parent of a mental health consumer faces is how to provide for the child after they are gone. Fortunately the law provides many effective instruments to deal with these problems. These instruments were the theme of NAMI-NYC Metro’s June 13th meeting, which was held at the Community Church. There were three speakers at the meeting: attorneys Robert Freeman and Martin Petroff and a volunteer with personal experience Celeste Wallin.
Freeman spoke on how to establish a trust for a mental health consumer. Under a trust arrangement, property is given to a trustee for the benefit of a named party. This allows the recipient to receive income from the trust while the property remains in the hands of the trustee. One type of trust called a Supplemental Needs Trust can be created so that a person’s income will not generally count in determining eligibility for government benefits.
Under a Supplemental Needs Trust a trustee under direction pays out income for the disabled person to supplement their government benefits. The theory is benefits pay for food and shelter while the trust pays for extras such as a television set, a computer or even a vacation. The trust document can spell out what the income can be used for.
There are various types of trusts. A Living Trust is created during the lifetime of the maker of the trust while a Testamentary Trust is established by a will. A Discretionary Trust is set up to protect the beneficiary. It allows the trustee at his discretion to cut off funds to the beneficiary. This is especially valuable for a mental health consumer who is generally stable but who can at times decompensate. During these periods the trustee can cut off funds to the consumer who does not have good judgment.
Dealing with decompensation is a concern of Wallin who is a trustee of a Living Trust established by her father for her siblings. All the children with the exception of Wallin suffer from bipolar disease. She administers the trust in consultation with her siblings but Wallin has the final word.
If a properly drawn trust can provide income for the mental health consumer there are legal documents that can protect the person if they become incompetent to manage their own affairs. Petroff discussed Advance Directives documents where a person states what kind of medical treatment they want to have when they become incompetent to manage their own affairs. There is a psychiatric Advance Directive but it is very new and it is not clear how the courts will honor it in issues involving involuntary treatment and commitment. As part of the Advance Directive a healthcare proxy should be created as well. The proxy or agent is authorized to make healthcare decisions when the person is incompetent. Parents may want to also create a power of attorney for a consumer. Under a power of attorney, an agent is created to manage financial affairs.
After the meeting, a lively question period was held. There, the speakers stressed the importance for parents to have a plan to protect the consumer. It is wise to consult a lawyer in drawing up the plans. The meeting provided valuable hope to parents and other relatives of mental health consumers. They now have solid information to plan for their child’s future.
Freeman spoke on how to establish a trust for a mental health consumer. Under a trust arrangement, property is given to a trustee for the benefit of a named party. This allows the recipient to receive income from the trust while the property remains in the hands of the trustee. One type of trust called a Supplemental Needs Trust can be created so that a person’s income will not generally count in determining eligibility for government benefits.
Under a Supplemental Needs Trust a trustee under direction pays out income for the disabled person to supplement their government benefits. The theory is benefits pay for food and shelter while the trust pays for extras such as a television set, a computer or even a vacation. The trust document can spell out what the income can be used for.
There are various types of trusts. A Living Trust is created during the lifetime of the maker of the trust while a Testamentary Trust is established by a will. A Discretionary Trust is set up to protect the beneficiary. It allows the trustee at his discretion to cut off funds to the beneficiary. This is especially valuable for a mental health consumer who is generally stable but who can at times decompensate. During these periods the trustee can cut off funds to the consumer who does not have good judgment.
Dealing with decompensation is a concern of Wallin who is a trustee of a Living Trust established by her father for her siblings. All the children with the exception of Wallin suffer from bipolar disease. She administers the trust in consultation with her siblings but Wallin has the final word.
If a properly drawn trust can provide income for the mental health consumer there are legal documents that can protect the person if they become incompetent to manage their own affairs. Petroff discussed Advance Directives documents where a person states what kind of medical treatment they want to have when they become incompetent to manage their own affairs. There is a psychiatric Advance Directive but it is very new and it is not clear how the courts will honor it in issues involving involuntary treatment and commitment. As part of the Advance Directive a healthcare proxy should be created as well. The proxy or agent is authorized to make healthcare decisions when the person is incompetent. Parents may want to also create a power of attorney for a consumer. Under a power of attorney, an agent is created to manage financial affairs.
After the meeting, a lively question period was held. There, the speakers stressed the importance for parents to have a plan to protect the consumer. It is wise to consult a lawyer in drawing up the plans. The meeting provided valuable hope to parents and other relatives of mental health consumers. They now have solid information to plan for their child’s future.
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