Frequently Asked Questions: Powers of Attorney

Co-authored by Misty Watson & Patrick Murphy.

What is a power of attorney?

• A power of attorney appoints a person to act as an agent for the person who executes the document. An agent is authorized to act for another person to the extent that the document permits. The acts of the agent (also known as the attorney-in-fact) will legally bind the person who granted him or her the power to act.
• Powers of attorney come in a variety of forms. There are two major types of powers of attorney: financial and healthcare. These powers can be combined into one document, but are frequently separate documents.
• Financial powers of attorney can be effective immediately or become effective upon the incapacitation or disability of the person who executed the power of attorney.
• Powers of attorney can also be limited to a certain period of time or last until they are revoked by the person who executed the power of attorney.

What is a durable power of attorney?

• A durable power of attorney remains effective during such periods of time that the individual who executed the document is considered incompetent.
• A durable power of attorney must be designated as such in the title.
• Specific wording must be used for a power of attorney to last during any period of time the person who signed the document is considered incompetent.

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Special Needs Advocate Newsletter

Social Security for Disabled Children and Adults

Social Security provides a necessary financial supplement to any individual with a disability as defined under federal law. There are three types of social security available to an individual with a disability. Social Security Disability Insurance is available to those individuals who have worked at least 10 years and do not currently earn more than $980.00 a month from employment. For those individuals whose disability began before the age of 22, the work history is based upon the individual’s parent. Supplemental Security Income is available to any disabled individual who meets the “limited income and resources” test. The third benefit available under Social Security is Medicare. Medicare is a government health insurance program.

Social Security Disability Insurance

Individuals whose disability began before the age of 22 may be eligible to receive Social Security Disability Insurance (SSDI), or what people commonly refer to as “Social Security.” Typically, an individual receives SSDI based upon his or her work history and amount of prior earnings. However, an adult disabled before the age of 22 may have little or no prior earnings and would not typically qualify for SSDI.

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The History of Missouri Special Needs Trusts

Genesis of Current Law: Case Study

A Special Needs Trust (also known as Supplemental Support Trust) is a legal mechanism that allows families to provide funds to relatives with special needs without interfering with their government benefits. The Missouri Division of Family Services (DFS) and the Social Security Administration analyze the special needs person’s assets annually to determine if he or she qualifies for government benefits, such as Medicaid and Supplemental Security Income.

If that person has more than $1,000-2,000 (depending on the program) in assets, he or she will be disqualified and will not receive the benefits. Most families need to maintain government benefits for family members with special needs, but also want to provide additional support.

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St. Louis Special Needs Programs and Services

Life Skills – Transitions into Independent Living

Life Skills helps people with disabilities live and work with dignity in our community. Established more than 44 years ago, Life Skills serves more than 1,400 adults and teens each year. Participants in the program are provided with aid, support, and opportunities to live independently, find and keep a job, make friends, and access all that St. Louis offers.

More information about Life Skills, their specific services, and upcoming events can be found on the web or by phone at (314) 567-7705.

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Special Needs Frequently Asked Questions

What are the different types of Special Needs Trusts?

There are three different types of Special Needs Trusts. The first two are known as Third-Party Grantor Trusts. A Grantor is the person who initially sets up the trust. These trusts are structured to benefit a person with special needs, but are set up by another party and funded with monies that are not in the name of the person with special needs. A Third-Party Grantor Trust can be set up in two different ways.

The first type of special needs trust is more commonly set up by parents of the child with special needs. In this trust, the funds are initially controlled by the Grantor. Upon the Grantor’s death, the funds are utilized for the benefit of the person with special needs. Even then, the trust must be carefully worded in order to restrict distributions that might disqualify the beneficiary from government programs.

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