Planning for the Future

Ever since my son turned 18 years old earlier this year, my wife and I have been busy trying to accomplish several things to benefit him.  Since he is completely disabled, the first thing that we did was to start the process of trying to get him Supplemental Security Income (SSI) benefits through the Social Security Administration.

That adventure took a couple of different turns.  Our first visit to Social Security was scheduled for two months prior to his 18th birthday.  We were originally told that we should apply prior to his 18th birthday so that by the time that it was approved he could start to get benefits right at his birthday.  Once we were in our meeting with Social Security, we were told we should wait until he turns 18 because otherwise they would consider our income when determining his eligibility for benefits.

A couple weeks after he turned 18, we headed back to the Social Security office to apply.  We had filled out the application and answered all of the required questions.  A few short weeks later, we received word that our son had been approved for SSI benefits, which he started receiving in June, albeit at a one third reduction due to their determination that he was receiving in kind support from us.

There are a lot of rules involved with SSI.  One of them is that in order for my son to continue to receive benefits, his total assets have to remain below $2000.  For that reason, we have also had to take some steps for estate planning should anything happen to my wife and I.  As part of that planning, we have had to set up a special needs trust so that any assets would not go directly to our son so that his assets will remain under $2000.

One of the things I was not aware of is that all wills have to go through probate.  I had always heard the horror stories of dying without a will and having your estate go through the probate courts.  It turns out that even with a will, the estate must go through probate in your state.  So, if you are in Texas, you have to through texas probate, and in Maryland, Maryland probate.  Having a will that specify how you want your estate handled makes the whole process easier.  For the sake of your loved ones, be sure to plan for the future.

Medicare and Social Security

I tend to be a worrier.  It is one of the traits that I guess I inherited from my mother.  My folks are both retired and getting to the age where there are a lot of ailments that they are dealing with on an almost daily basis.

Like a lot of more mature Americans, my parents rely heavily on their Social Security and Medicare benefits.  They paid into the program their entire lives, and as such, should be able to use those benefits.  Unfortunately, Medicare just doesn't cover enough and they have to also rely on Medicare supplement insurance plan.

As a worrier, I always worry about things that will impact the benefits they need.  While both of those programs are in desperate need of reform, denying or reducing benefits to those that truly need them should be off the table.  I do think that some sort of means testing should be done so that those that need the benefits the most will be able to retain them.

I do not pretend to know the solutions for what needs to be done to preserve these benefits for current and future beneficiaries of these programs.  It is one of those things that the politicians will have to actually work on, rather than fight.  I expect in the coming months we will be hearing more on Medicare and Social Security as the politicians rev up their campaign rhetoric.

My Hard Working Man

Image via WikipediaWe went to the mailbox today to discover a W2, for my son from his new school.  For 2010, he earned a big $4.61 and had $.07 taken out for Medicare and $.29 for social security.  My son now has a job working in one of the vocational programs at the school.

Our nephew graduated from this school last spring.  After the graduation, his case worker handed my wife a locked cash box that contained the money he had earned from his jobs.  One Christmas, the school took them shopping.  He selected gifts for family members and used his own money to pay for them.

Currently, my son is working in the Industrial Training Department at the school.  He assembles bottles by putting tops on them and placing them in a container.  He is paid based on the amount of work he completes.  The school also has jobs in a car wash, school kitchen, nursery, cleaning service, among others.

As my son progresses, he will have opportunities to work in other areas.  He receives a paycheck every two weeks for his work.  The class then goes on a field trip to a bank in the community to cash their paychecks.  Then they can go to the store to purchase things.  My son has used some of his money to buy some potato chips.

There are many reasons that we wanted our son to go away to this school.  The vocational program is one of those reasons.  They are helping kids with special needs to become productive members of society.  I am proud that my son has earned his first paycheck, and I am happy that they are teaching him valuable life lessons.

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