Last week, NAELA, as part of the Consortium for Citizens with Disabilities (CCD), sent a letter of support for H.R. 6698, the Stop Unfair Medicaid Recoveries Act of 2022, introduced by Rep. Schakowsky (D-IL). The legislation would effectively end estate recovery except in instances of improper payments. Last year, NAELA, along with Justice and Aging and other advocacy organizations, published an issue brief on the harms caused to low-income individuals from Medicaid estate recovery.

Read more by clicking here.

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Why Special Needs Planning Is Essential

Families in El Paso, Las Cruces, and surrounding areas in Southern New Mexico who have a loved one with a disability must take proactive steps to protect their financial future. Without proper planning, an inheritance or financial gift could unintentionally disqualify them from essential government benefits like Supplemental Security Income (SSI) and Medicaid.

A special needs trust is a critical estate planning tool that ensures your loved one maintains eligibility for public benefits while still receiving additional financial support for their well-being. At Townsend Allala, Coulter & Kludt, PLLC, our special needs planning attorneys in El Paso work closely with families to navigate the complexities of special needs estate planning, ensuring long-term security for individuals with disabilities.

If you are looking for a special needs estate planning attorney near me in El Paso or Southern New Mexico, our team can guide you through the process to ensure your loved one is fully protected.

What Is a Special Needs Trust and How Can It Help?

A special needs trust is a legal arrangement that holds assets for the benefit of a person with disabilities while protecting their eligibility for government assistance programs. These trusts provide supplemental financial support for needs not covered by public benefits, such as:

• Medical and dental expenses beyond Medicaid coverage
• Home modifications and accessibility improvements
• Education and vocational training
• Specialized transportation needs
• Recreational activities and travel

Our special needs planning lawyers in El Paso ensure that the trust is structured correctly to comply with federal and state laws while maximizing financial benefits for your loved one.

Types of Special Needs Trusts

First-Party Special Needs Trusts (Self-Settled SNTs)

This trust is funded with assets belonging to the individual with special needs, such as an inheritance, legal settlement, or personal savings. However, any remaining funds in the trust must be used to reimburse Medicaid upon the beneficiary’s passing.

Third-Party Special Needs Trusts

A third-party special needs trust is created and funded by a parent, grandparent, or another relative. Unlike a self-settled trust, it does not require Medicaid payback, meaning any remaining assets can be distributed to other family members or charitable organizations. This is often the preferred option in special needs estate planning.

Our special needs estate planning attorneys help families throughout El Paso and Southern New Mexico determine the best trust structure to protect their loved one’s financial future.

Why You Should Set Up a Special Needs Trust Now

Many families delay special needs estate planning, assuming they can leave assets directly to their loved one. However, doing so can create serious complications, including:

• Loss of government benefits – A direct inheritance may push your loved one over income limits, making them ineligible for Medicaid and SSI.
• Financial mismanagement – Your loved one may not have the ability to manage a large sum of money effectively.
• Legal complications – Without proper planning, the funds may need to go through probate, delaying access to essential resources.

A special needs planning attorney near me can help you take proactive steps to avoid these risks while ensuring your loved one’s long-term financial security.

The Role of a Special Needs Planning Attorney

At Townsend Allala, Coulter & Kludt, PLLC, our special needs planning attorneys in El Paso guide families through every step of creating a legally sound trust. Our services include:

• Drafting and structuring special needs trusts to comply with Texas and New Mexico laws
• Advising on funding strategies, including life insurance, investments, and real estate
• Coordinating estate plans to protect all heirs while prioritizing the needs of a disabled family member
• Helping trustees manage and administer the trust properly

If you are searching for a special needs estate planning attorney near me, our firm provides personalized, experienced legal support to help you navigate this complex process.

Why Choose Townsend Allala, Coulter & Kludt, PLLC?

Families in El Paso, Las Cruces, and the surrounding areas trust Townsend Allala, Coulter & Kludt, PLLC for their special needs estate planning because:

• We have decades of experience in elder law and special needs planning.
• We provide personalized legal solutions tailored to each family’s unique situation.
• We offer comprehensive estate planning services, ensuring all aspects of your financial and legal future are covered.

Whether you are setting up a special needs trust for the first time or need to update an existing plan, our special needs planning lawyers are here to help.

Frequently Asked Questions

Can I Set Up a Special Needs Trust Without a Lawyer?

While it is possible to create a special needs trust without an attorney, mistakes in trust language or funding can lead to unintended consequences, such as disqualifying your loved one from government benefits. A special needs estate planning attorney ensures the trust is structured correctly and complies with all legal requirements.

How Do I Fund a Special Needs Trust?

A special needs planning attorney can help you determine the best funding sources, including:

• Life insurance policies
• Retirement accounts
• Gifts from family members
• Investments and real estate

Is a Special Needs Trust the Same as a Guardianship?

No. A special needs trust manages financial resources for a person with disabilities, while guardianship involves legal decision-making authority over their personal and medical affairs. Our firm can assist with both special needs planning and guardianship arrangements.

Speak With an Experienced Special Needs Planning Attorney Today

Planning for a loved one with special needs requires careful legal and financial planning. At Townsend Allala, Coulter & Kludt, PLLC, we help families throughout El Paso, Las Cruces, and Southern New Mexico create comprehensive estate plans that protect their loved ones and secure their futures.

If you need a special needs planning attorney in El Paso or a special needs estate planning attorney near me, contact our elder law firm online or give us a call at 915-533-0007 today to schedule a consultation. We are here to provide the legal guidance you need to make informed decisions about your family’s future.

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¿Qué Es Un Fideicomiso Para Necesidades Especiales Y Como Podría Ayudar a Proveer Una Mejor Vida Para Mi Ser Querido Con Una Discapacidad Cuando Yo Fallezca?

Una de las herramientas más comunes utilizadas por abogados en la planificación para beneficios públicos es un fideicomiso para necesidades especiales (“FNE”). Los beneficios gubernamentales están diseñados para proveer cuidado de salud básico, alimento y refugio. Como tales, los beneficios gubernamentales solo proveen una pobre existencia para los beneficiarios.

Un FNE está diseñado para proveer extras y para necesidades adicionales, como vacaciones, cosa que los beneficios gubernamentales no proveen. Un FNE puede ser tanto autoliquidado como liquidado por terceros dependiendo de la fuente de los fondos.

ADVERTENCIA: Cuando se establece o administra un FNE, es importante determinar correctamente la Fuente de los fondos (p.e. autoliquidado o de fondos de terceros). Como se menciona más adelante, estos dos tipos de fideicomisos tienen distintos requisitos. Adicionalmente, un fideicomiso catch-all que incluye tanto una autoliquidación como fondos de terceros está prohibida. Los fondos de terceros nunca deben estar entrelazados con un fideicomiso autoliquidado, y viceversa.

¿Por Qué Es Imperativo Planificar Un Fne Ahora Mismo?

• Si no haces nada, y tu ser querido con una discapacidad hereda tu dinero:
  • Ella probablemente será descalificada de beneficios públicos,
  • A ella probablemente le falte la agudeza financiera para administrar los fondos, y
• Una orden judicial podría ser necesaria para establecer un Fideicomiso para Necesidades Especiales Autoliquidado para el beneficio de tu ser querido con necesidades especiales.
• Debe haber una provisión para pagarle devuelta a Medicaid ante la terminación del fideicomiso.

¿Por Qué Es Importante Establecer Un Fideicomiso Para Necesidades Especiales Liquidado Por Terceros en Vez De Dejar Que Tu Ser Querido Con Necesidades Especiales Herede La Propiedad Directamente?

• En adición a evadir los problemas listados anteriormente sobre dejar un regalo directamente para tu ser querido con necesidades especiales, si estableces un Fideicomiso para Necesidades Especiales con tus fondos para el beneficio de tu ser querido con necesidades especiales, el Fideicomiso será tratado como un Fideicomiso para Necesidades Especiales Liquidado por Terceros.
• Si tu ser querido con una discapacidad hereda el dinero y luego lo coloca en un FNE Autoliquidado, cualquier dinero restante ante la muerte de tu ser querido con necesidades especiales o en la terminación de los beneficios, el FNE debe contener una provisión de reembolso. Esto significa que al Gobierno se le debe pagar dólar por dólar los beneficios proveídos.
• Sin embargo, si más bien creas un FNE Liquidado por Terceros y se le dan fondos apropiadamente para el beneficio de tu ser querido con necesidades especiales, ante la muerte de tu ser querido con discapacidades o ante la terminación de sus beneficios, el fideicomiso no necesitará hacer un reembolso al gobierno ni un dólar, y en su lugar puedes dejar cualesquiera fondos restantes a tus otros seres queridos, o a la caridad, ¡lo que quieras escoger!

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Documentos Requeridos Mientras Incapacitado:

CARTA PODER PERMANENTE

Una Carta Poder Permanente es un contrato entre dos individuos donde una de ellos (el principal, u “otorgante”) le da al otro (el agente, o “apoderado”) la autorización para tomar todo tipo de decisiones (tales como financieras, de negocios ó bienes raíces) en su nombre aún cuando el principal después se quede mentalmente incapacitado.

CARTA PODER MÉDICA

Una Carta Poder Médica le da a otra persona la autoridad para tomar decisiones médicas en caso de que usted se encuentre incapacitado para hacerlo por usted mismo. A diferencia del Instructivo al Médico, este documento no expresa necesariamente qué tipo de tratamiento quiere usted recibir. Usted puede dejar esas decisiones a su apoderado (a veces llamado agente ó representante) si usted así lo desea. Lo ideal sería que ambos documentos se complementen.

INSTRUCTIVO AL MÉDICO

El Instructivo al Medico, conocido como un Testamento en Vivo, Directivo al Doctor, ó Directivo Medico, establece sus deseos con respecto a qué tratamientos médicos extendidos quiere que le nieguen ó que le proveen en caso que usted no pueda comunicar estos deseos. El Instructivo al Medico crea contrato con el doctor que lo atiende. Una vez que el doctor recibe dicha Instrucción debidamente firmada y notariada, él o ella tienen la obligación de honrar sus instrucciones o cerciorarse de que usted sea transferido al cuidado de otro doctor que sí lo haga. Muchas personas creen erróneamente que el Instructivo al Medico sólo se usa para prevenir el uso de los tratamientos que prolongan la vida. De hecho, algunas personas quieren hacer notar que a ellos les gustaría que se agoten todos los recursos médicos posibles; el Instructivo al Medico es el documento apropiado para hacerlo.

HIPAA AUTHORIZACION PARA LIBERAR EXPEDIENTES MEDICOS

La Ley de Portabilidad y Responsabilidad del Seguro Médico (HIPAA) limita la divulgación de “información de salud individualmente identificable.” De acuerdo con las regulaciones federales, una autorización para liberar registros médicos permite a los proveedores de salud divulgar y discutir abiertamente información de salud individualmente identificable con miembros de su familia y/o amigos designados en la autorización, independientemente de su estado de salud. Una Autorización para Liberar Expedientes Médicos también sobrevive a su muerte, a diferencia de un Poder de Abogado Médico.

DESIGNACIÓN DE TUTOR

La Designación de Tutor es el documento a través del cual usted indica quién será el tutor de su persona, de su propiedad, o de ambos. Este documento entra en efecto en caso de que usted se encuentre incapacitado y no haya otorgado algún poder válido para que alguien tome decisiones en su nombre. El Juzgado usará este documento cuando se tenga que determinar quién deberá ser nombrado como su tutor y quién tomará decisiones en su nombre.

Documentos Necesarios Después De Fallecer:

TESTAMENTO

El Testamento es un documento que indica cómo le gustaría que se distribuyan sus bienes reales y personales después de su defunción. Este documento será válido a menos de que sea revocado por usted mismo. Un Testamento puedo ser algo muy sencillo como repartir su propiedad a su pareja u otros seres queridos, ó algo más complejo cómo colocar su propiedad en un fideicomiso para el beneficio de sus herederos.

AGENTE PARA CONTROLAR LA DISPOSICION DE LOS RESTOS

Un Agente Para Controlar la Disposición de los Restos, también conocida como Declaración Jurada de Autorización de Disposición Corporal. Un Agente Para Controlar la Disposición es instrucciones escritas que describen muchos requisitos diferentes según los deseos del difunto. Las especificaciones no se limitan a lo siguiente: donde el cuerpo debe ser enterrado, donde las cenizas se dispersarán después de la cremación, el presupuesto para un servicio memorial o un funeral, así como el tipo de ceremonia a realizar (religiosa, etc.). El Código de Salud y Seguridad de Texas, Sección 711.002 (a) proporciona una lista de prioritaria de individuos que tienen el derecho de controlar la disposición de los restos del difunto en ausencia de instrucciones escritas o un agente nombrado.

La lista prioritaria sigue en este orden: el cónyuge sobreviviente del difunto; Cualquiera de los hijos sobrevivientes del difunto: Cualquiera de los padres sobrevivientes del difunto; Cualquiera de los hermanos adultos sobrevivientes del difunto; O cualquier persona adulta en el siguiente grado de parentesco en el orden designado por ley para heredar el del difunto. Es importante señalar que esta lista no otorga este derecho a un socio sobreviviente. Por lo tanto, es esencial para las parejas del mismo sexo para ejecutar este documento. Planificación para la disposición de los restos ayudara a salvar a las partes sobrevivientes de cualquier desacuerdo sobre como el cuerpo debe ser manejado el cuerpo después de la muerte. También aliviara la carga emocional al ayudar a estas personas a concertar sus energías en lidiar con la perdida de su ser querido.

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Documents Required While Incapacitated:

Durable Power of Attorney

A Durable Power of Attorney is a contract between two individuals where one party (the principal) gives to the other (the agent) the authority to make any number of decisions (e.g. financial, business, real estate) on his or her behalf, even if the principal later becomes mentally incapacitated.

Medical Power of Attorney

A Medical Power of Attorney gives another person the authority to make medical decisions for you if you are unable to make them for yourself. Unlike a Healthcare Directive, this document does not necessarily state what type of treatment you want to receive. You can leave those decisions to your proxy (sometimes called an attorney-in-fact, agent, or representative) if you feel comfortable doing so. Ideally, however, the two documents will work together.

Healthcare Directive

A Healthcare Directive, also known as a Living Will, Directive to Physicians, or Medical Directive, sets your wishes about what extended medical treatment should be withheld or provided if you become unable to communicate those wishes. The Directive creates a contract with the attending doctor. Once the doctor receives a properly signed and witnessed Directive, he or she is under a duty to either honor its instructions or to make sure that the patient is transferred to the care of another doctor who will. Many people mistakenly believe that healthcare directives are used only to instruct doctors to withhold life-prolonging treatments. In fact, some people want to reinforce that they would like to all medical treatment that is available; a healthcare directive is the proper place to do so.

Hipaa Authorization to Release Medical Records

The Health Insurance Portability and Accountability Act (“HIPAA”) limits disclosure of “Individually Identifiable Health Information.” Pursuant to federal regulations, an Authorization To Release Medical Records allows healthcare providers to disclose and openly discuss individually identifiable health information with members of your family and/or friends designated in the authorization, regardless of your state of health. An Authorization To Release Medical Records also survives your death, unlike a Medical Power of Attorney.

Designation of Guardian

A Designation of Guardian is the document you use when deciding who shall be your guardian, whether it be of your person, your estate, or both. This document becomes effective if you are declared incapacitated and there are no valid powers of attorney naming an individual whom you have indicated to make decisions on your behalf. The Court will use this document when determining who should be named as your guardian and make decisions on your behalf.

Documents Required After Passing:

Will

A Will is a document which directs how you wish your property to be disposed of upon your death. This document remains valid unless or until it is revoked by you. A Will can range from a simple one, where you bequeath your property to your spouse, or other loved ones, to a complex one, where you may place your property in a trust for the benefit of your heirs.

Agent to Control Disposition of Remains

An Agent to Control Disposition of Remains, also known as Body Disposition Authorization Affidavit. An Agent to Control Disposition is written instructions that outline many different requirements according to the decedent’s wishes. Such specifications are not limited to the following: where the body shall be buried, where the ashes shall be scattered after cremation, budget for a memorial service or funeral, as well as the type of ceremony to be performed (religious, etc). The Texas Health and Safety Code, Section 711.002(a) provides a priority list of individuals who have the right to control the disposition of the decedent’s remains in the absence of written instructions or a named agent. The priority list follows in this order: the decedent’s surviving spouse; any one of the decedent’s surviving children; either one of the decedent’s surviving parents; any one of the decedent’s surviving adult siblings; or any adult person in the next degree of kinship in the order named by law to inherit the estate of the decedent. It is important to note that this list does not grant this right to a surviving partner. Therefore, it is essential for same-sex couples to execute this document. Planning for the disposition of remains will help save surviving parties of any disagreements on how the body should be handled after death. It will also ease the emotional burden by helping these individuals focus their energies on dealing with the loss of their loved one.

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Many families fear losing their homes due to the Medicaid Estate Recovery Program (MERP) after receiving long-term care benefits. However, with proper planning, you can safeguard your assets. At Townsend Allala Coulter & Kludt, we help families in El Paso, TX, navigate Medicaid planning to protect what matters most.

What Is the Medicaid Estate Recovery Program

MERP allows the state to recover costs from the probate estate of a Medicaid recipient after their death. This recovery only applies under certain conditions, and there are several ways to avoid it.

How to Protect Your Home from MERP

Use a Lady Bird or Transfer on Death Deed

These tools transfer ownership of your home automatically upon death, bypassing probate and eliminating MERP claims.

• Lady Bird Deed retains control of the property during your lifetime while ensuring transfer to heirs.
• Transfer on Death Deed allows for changes during your lifetime while avoiding probate.

MERP Exceptions and Waivers

Even without special deeds, you may qualify for an exception or waiver:

• A surviving spouse prevents MERP recovery.
• Disabled children, children under 21, or an unmarried adult child living in the home for at least a year before the recipient’s death are protected.
• Low-income heirs may qualify for a waiver or partial waiver.

Consult an Attorney Before Paying MERP Claims

Never pay a MERP claim without consulting a Medicaid planning attorney. Many claims can be negotiated or eliminated entirely, ensuring your family retains its assets.

Secure Your Future with Expert Planning

Don’t let the fear of MERP prevent you from accessing necessary Medicaid benefits. With proper planning, you can protect your home and secure your family’s financial future. Contact us by visiting our Medicaid planning page for personalized legal guidance in El Paso, TX.

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