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NOT SO FAST ROVER.

Thu, 10 Dec 2020 22:27:00 GMT

Thinking about visiting family or taking a long vacation with your emotional support animal once the pandemic is over?

On Thursday, December 10, 2020, the US Department of Transportation, reported a final rule effective January 11, 2011 that will affect the transport of service animals by air. The rule amends the former ACAA (Air Carrier Access Act) regulation with the intention to ensure air transportation is safe for the traveling public as well as accessibility to individuals with disabilities.

The Good News for Dogs:

The new rule defines a service animal as a “dog” that has been individually trained to do work or perform tasks for a “qualified individual” with a disability. The breed or type of dog does not matter as long as the passenger attests to the dog’s training and good behavior and certifies the animal’s good health.
The new rule also permits airlines to limit the number of service animals that one passenger can bring on board to two.

For the Rest of Our Animal Friends:

The new definition of “service animal” by the DOT brought its definition in line with the Department of Justice’s existing definition for a service animal. The DOT did publish a couple of Notice(s) of Potential Rule Making for comment and then analyzed the numerous comments received in return. After review, the conclusion was made to use the strict standard proposed. However, the DOT noted “ that airlines may choose to continue to transport emotional support animals without charge at their discretion.”

Misrepresentation as a Service Animal is a Federal Offense

As stated above, the DOT has required that three federal forms be submitted prior to a service animal being allowed to board a flight. The Department stated that although the DOJ does not allow these types of forms, “…it would be appropriate for airlines to require these forms to ensure that the animal does not pose a health or safety risk to other passengers or service animals before boarding the cabin of the aircraft.” The forms state that “…it would be a Federal crime, in violation of 18 U.S.C. 1001, to make false statements or representations to secure disability accommodations.”

For more details and source information, click on the link below:

https://www.federalregister.gov/d/2020-26679

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How Will Tax Reform Impact Seniors and Persons with Disabilities?

Thu, 18 Jan 2018 00:16:00 GMT

The Tax Cut and Jobs Act (TCJA) is now officially law. Both the House and Senate passed the new tax reform bill in December with straight party-line votes and no support from Democrats. President Trump signed it into law right before Christmas. It is the first overhaul of the tax code in more than 30 years.

In this issue of The Elder Counselor , we will mostly look at how this tax law is likely to impact seniors and persons with disabilities.

It’s Good News for Most Americans

Retirees, most of whom are on relatively fixed incomes, are probably the most concerned about what the new tax law will mean for them. But, generally, they will be less affected than others because the changes do not affect how Social Security and investment income are taxed. In fact, many will benefit from the doubling of the standard deduction and, with the new individual tax brackets and rates, will be paying less in taxes when they file their tax returns in April, 2019. (Most of the changes will apply to 2018 income, not 2017 income.)

Key Individual Provisions to Know

Here are main provisions in the tax law that could particularly affect retirees and persons with disabilities. These individual provisions are set to expire at the end of 2025 so Congress will need to act before then if they are to continue.

(Mostly) Lower Individual Income Tax Rates and Brackets

There are still seven individual tax brackets and rates, but most are lower. Current rates are 10%, 15%, 25%, 28%, 33%, 35% and 39.6%. Here are the new rates and how much income will apply to each:

Rate Individuals Married, filing jointly

10%                 Up to $9,525                           Up to $19,050
12%                 $9,526 to $38,700                   $19,051 to $77,400
22%                 $38,701 to $82,500                 $77,401 to $165,000
24%                 $82,501 to $157,500               $165,001 to $315,000
32%                 $157,501 to $200,000             $315,001 to $400,000
35%                 $200,001 to $500,000             $400,001 to $600,000
37%                 $500,001 and over                  $600,001 and over

Standard Deduction is Almost Doubled

For single filers, the standard deduction is increased from $6,350 to $12,000. For married couples filing jointly, it increases from $12,700 to $24,000. Under the new law, fewer filers would choose to itemize, as the only reason to continue to itemize is if deductions exceed the standard deduction.

Personal and Elderly Exemptions

Currently, you can claim a $4,050 personal exemption for yourself, your spouse and each dependent, which lowers your taxable income and resulting taxes. The new law eliminates these personal exemptions, replacing them with the increased standard deduction.

The blind and elderly deduction has been retained in the new law. People age 65 and over (or blind) can claim an additional $1,550 deduction if they file as single or head-of-household. Married couples filing jointly can claim $1,250 if one meets the requirement and $2,500 if both do.

Medical Expenses Deduction

Currently, people with high medical expenses can deduct the portion of those expenses that exceeds 10% of their income. For example, a couple with $50,000 in income and $10,000 in medical expenses can deduct $5,000 of those medical expenses.

The new law increases this to medical expenses that exceed 7.5% of income. In the example above, the couple would be able to deduct $6,250 of their expenses. Note that this part of the new law applies to medical expenses for 2017 and 2018.

State and Local Tax (SALT) Deduction

The amount you pay in state and local property taxes, income and sales taxes can be deducted from your Federal income taxes—and the amount you can currently deduct is unlimited. The new law limits the deduction for these local and state taxes to $10,000.

Residents in the vast majority of counties in the U.S. claim an average SALT deduction below $10,000. Most low- and middle-income families who currently itemize because of their SALT deduction will likely take the much higher standard deduction unless their total itemized deductions (including SALT) are more than $12,000 if single and $24,000 if married filing jointly.

Originally lawmakers in the House and Senate wanted to repeal SALT entirely, to help pay for the tax cuts, but lawmakers in high-tax states (specifically CA, IL, NY and NJ) fought to keep it in. Those in higher income households in high-tax states will benefit from the SALT deduction.

Lower Cap on Mortgage Interest Deduction

Currently, if you take out a new mortgage on a first or second home, you can deduct the interest on up to $1 million of debt. The new law puts the cap at $750,000 of debt. (If you already have a mortgage, you would not be affected.) The new law also eliminates the deduction for interest on home equity loans, which is currently allowed on loans up to $100,000.

Temporary Credit for Non-Child Dependents

Under the new law, parents will be able to take a $500 credit for each non-child dependent they are supporting. This would include a child age 17 or older, an ailing elderly parent or an adult child with a disability. It is temporary because it is set to expire at the end of 2025 along with the other individual provisions.

Higher Exemptions for Alternative Minimum Tax (AMT)

The AMT was created almost 50 years ago to prevent the very rich from taking so many deductions that they paid no income taxes. It requires high-income earners to run their numbers twice (under regular tax rules and under the stricter AMT rules) and pay the higher amount in taxes. But because the AMT wasn’t tied to inflation, it has gradually been affecting a growing number of middle-class earners. The new tax law reduces the number of filers who would be affected by the AMT by increasing the current income exemption levels for individuals from $54,300 to $70,300 and for married couples from $84,500 to $109,400.

Federal Estate Tax Exemptions Doubled

The new law does not repeal the Federal estate tax, but it eliminates it for almost everyone by doubling the estate tax exemption to $11.2 million for individuals and $22.4 million for married couples. Amounts over these exemptions will be taxed at 40%. The new rates are effective starting January 1, 2018 through December 31, 2025.

Eliminates Individual Mandate to Buy Health Insurance

With the elimination of the individual mandate to purchase health insurance, there will no longer be a penalty for not buying insurance. This is expected to help offset the cost of the tax bill and save money by reducing the amount the federal government spends on insurance subsidies and Medicaid.

The Congressional Budget Office expects that fewer consumers who qualify for subsidies are expected to enroll on Obama Care exchanges and fewer people who are eligible for Medicaid will seek coverage and learn they can sign up for the program. (Estimates of those who are expected to have no health insurance by 2027 are all over the place, ranging from 3-5 million to 13 million.)

Critics, including AARP, claim that eliminating the individual mandate will drive up health care premiums, result in more uninsured Americans and add $1.46 trillion to the deficit over the next ten years, which could trigger automatic spending cuts to Medicare, Medicaid, and other entitlement programs unless Congress votes to stop them.

Some claim the individual mandate helps to encourage younger and healthier Americans to sign up for coverage. Without it, the individual market might lean more toward sicker and older consumers, which might lead some insurers to drop out of the market. 29% of current enrollees on the federal exchange already have only one option in 2018. Others maintain that the mandate is not a key driver for obtaining insurance. About 4 million taxpayers paid the penalty in 2016.

Inflation Adjustments Slowed

The new tax law uses “chained CPI” to measure inflation, which is a slower measure than that currently used. This means that deductions, credits and exemptions will be worth less over time because the inflation-adjusted dollars that determine eligibility and maximum value would grow more slowly. It would also subject more of your income to higher rates in the future.

529 Plans Expanded

529 plans have been a tax-advantaged way to save for college costs. The new tax law expands the use of tax-free distributions from these plans, including paying for elementary and secondary school expenses for private, public and religious school, as well as some home schooling expenses. Educational therapies for children with disabilities are also included. There is a $10,000 annual limit per student.

ABLE Accounts Adjusted

ABLE accounts, established under Section 529A of the Internal Revenue Code, allow some individuals with disabilities to retain higher amounts of savings without losing their Social Security and Medicaid benefits. The new tax law allows money in a 529 education plan to be rolled over to a 529A ABLE account, but rollovers may count toward the annual contribution limit for ABLE accounts ($15,000 in 2018). The new law also changes the rules on contributions to ABLE accounts by designated beneficiaries who have earned income from employment.

What to Watch

Expect some clarifications and strategies as the experts weigh in. There will also undoubtedly be some adjustments as the new tax bill goes into effect. Please don’t hesitate to reach out if you have questions about these new provisions and how they may impact you or those you work with.

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Connecticut’s Adoption of the Uniform Power of Attorney Act and Why You Should Update Your Power of Attorney

Mon, 18 Sep 2017 23:13:00 GMT

Connecticut recently changed its Power of Attorney law (see Public Act 15-240) to keep up with financial transactions in the 21st century. The prior law had been in effect since 1965, before online banking, cell phones and even personal computers existed.

A Power of Attorney (PoA) is a document you (the Principal) sign naming the person you want (Agent) to act on your behalf regarding all financial decisions. The new PoA law expands an Agent’s authority over your financial affairs with “special powers” including:

• amending inter vivos trusts;
• giving gifts;
• changing beneficiary designations;
• authorizing another person to exercise authority under the PoA;
• waiving rights to be a beneficiary of a joint and survivor annuity;
• disclaiming or refusing an interest in property;
• making decisions regarding rights of survivorship;
• exercising fiduciary powers; and
• managing digital assets.

Along with this expansion of powers, the law clearly spells out to Agents their obligations as your fiduciary. These duties include:

• keeping good records;
• avoiding conflicts of interest;
• working with your health care agent;
• following your estate plan; and
• following your wishes to the extent they are known.

The law provides better protection from the abuse of powers by providing remedies through the Probate Courts. Additionally, Probate Courts now have increased authority to oversee problems that may occur while following a Power of Attorney.

It is extremely important that you keep this document in a safe place since it is an active document (copies of the document are also legally enforceable). However, it is important to note here that the new law also provides that the filing of a divorce or separation action automatically revokes the designation of a soon to be ex-spouse without any further action required on the Principal’s part.

With the recent expansion of powers authorized by Connecticut’s Power of Attorney law, it is more important than ever that you review your PoA to make certain the person you named as your Agent then is still the person you want and trust to manage your finances now.

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The Top Five Responsibilities of a Trustee of a Special Needs Trust

Fri, 21 Apr 2017 21:37:00 GMT

Last modified: 8 months ago | 8/3/2016

If you are considering taking on the responsibility of serving as the trustee of a special needs trust, you will probably have questions about the trustee’s role. Trustees of special needs trusts have many important responsibilities, but these five likely rank at the top of any trustee’s list.

1. Making Appropriate Distributions From the Trust

Before a trustee makes a distribution from a special needs trust, she has to confirm that the distribution is actually authorized under the terms of the trust and she must also understand the effect that the distribution will have on the beneficiary’s government benefits.

At a minimum, every special needs trust will contain some language giving direction to the trustee. But no matter the wording, one thing is very clear – the trustee is legally required to follow the terms of the trust when making distributions. Not only must a trustee understand the terms of the trust itself, but the trustee must also recognize how a distribution affects the beneficiary’s government benefits. Just because the trustee can spend the money does not mean that the trustee should spend the money, especially since certain purchases can reduce or end the recipient’s government benefits. On the other hand, some distributions that affect government benefits may still be in the beneficiary’s best interest and should still be made.

2. Investing the Trust Property Appropriately

A trustee is probably not going to be picking individual stocks to invest on behalf of the trust. But the trustee is required to make sure that the trust funds are appropriately invested by qualified financial professionals. This involves oversight of the investment activity, monitoring and frequent meetings with financial advisors and accountants to make sure that the trust’s investment strategy is working properly. The trustee is also tasked with making sure that the level of risk is appropriate for a trust to provide steady growth while still generating some income for the trust.

3. Bookkeeping

The trustee is responsible for keeping the trust records and for providing accounts to the beneficiary and sometimes to others. Like investing, not all trustees are going to prepare accounts on their own – sometimes they hire bookkeepers to do this. But the trustee must ensure that the proper information is recorded and distributed to the appropriate parties and that the trust’s records are in order and available for audit by the beneficiary or a court.

4. Tax Reporting

Trustees are required to file the trust’s state and federal income tax returns, typically on April 15th. Since trust tax returns are complicated, it’s best to leave this job to a professional accountant, but the trustee must still understand the basics of trust accounting and how distributions from trusts are taxed to the beneficiaries. If the trustee is not careful, the trust beneficiary could experience an unwelcome tax bill come tax time.

5. Communication

Although all of these responsibilities are significant, communication with the trust beneficiary, his caregivers and others involved in his life is probably the most important responsibility of all. Trustees often have to coordinate payment for essential services like housing and medical care, and miscommunication can result in the loss of these sometimes life-saving benefits. Trustees also risk suit from beneficiaries or family members who feel that their needs are not being addressed by the trustee. Often a simple phone call can save a lot of hurt feelings. But this does not mean that a trustee shouldn’t be able to say “no” to a beneficiary. While a million-dollar trust may seem like it will last a lifetime, it can be easily squandered if a trustee is more concerned with keeping a beneficiary happy than with making appropriate expenditures from the trust. Setting and communicating clear expectations about the use of trust funds avoids this problem.

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U.S. Supreme Court Rules That IDEA Requires More Than “Some” Educational Benefit

Mon, 10 Apr 2017 17:48:00 GMT

Parents of students with disabilities may be rethinking their child’s educational plan after the U.S. Supreme Court’s ruling in the case of a child with autism and attention deficit disorder whose parents took him out of public school.

At issue in the case was the level of educational benefit that public schools must provide to students under the federal Individuals with Disabilities Education Act (IDEA) . The Act guarantees children with disabilities a “free appropriate public education,” but the level of progress a student must make in order for the education to be called “appropriate” has been unclear, leading to school districts across the country interpreting the meaning differently.

The case revolved around Colorado parents who took their son, Endrew, out of public school in fifth grade because they felt he was not progressing adequately under the individualized education plan (IEP) provided by the school district. The parents enrolled Endrew in private school, where he made better progress. They then sued the school district to pay the cost of his private school.

The school district refused to pay, contending that as long as Endrew was making some progress in the public school, his IEP was sufficient. Endrew’s parents appealed the school district’s decision, arguing that the district should provide a substantial and meaningful, not minimal, educational benefit to a child with a disability. Jeffrey Fisher, attorney for Endrew, said that IDEA requires schools to provide an “equal educational opportunity” for children with disabilities, or an “equally challenging curriculum on the academic side” to meet their functional and developmental goals.

The parents lost at every level of appeal, with the U.S. Court of Appeals for the Tenth Circuit – the final level before the U.S. Supreme Court — ruling that instruction and services furnished to children with disabilities need only confer “some educational benefit.”

The Supreme Court agreed to hear the parents’ final appeal , and on March 22, 2017, by a vote of 8-0, it overturned the lower court and ruled in the parents’ favor.

“When all is said and done,” Chief Justice John Roberts wrote for the Court, “a student offered an educational program providing ‘merely more than de minimis ’ progress from year to year can hardly be said to have been offered an education at all.” The IDEA demands more of schools, Roberts said. “It requires an educational program reasonably calculated to enable a child to make progress appropriate in light of the child’s circumstances.”

Many people had hoped that the case would settle once and for all the level of educational benefit required by the IDEA, but the Court declined to do this. While ruling that minimal educational progress is not sufficient, the High Court stopped short of clearly defining what an “appropriate” education under IDEA really means. “We will not attempt to elaborate on what ‘appropriate’ progress will look like from case to case,” Roberts wrote.

To read the Court’s ruling, click here .

For an analysis of the ruling by the website JDSupra, click here .

Original Article: http://specialneedsanswers.com/us-supreme-court-rules-that-idea-requires-more-than-some-educational-benefit-16013

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