Special Needs Tax Credit proposal in Exceptional Parent Nov. 2009

[Guest guest]

An Affordable Proposal for Guardianship:

The Special Needs Tax Credit Bill

BY JARET L. VOGEL

Exceptional Parent Magazine, October/ November 2009

The mom's anguished question was, " Why do I have to pay $5,000 to speak for my

18-year old with Autism? " I then stood up and asked, " Why can't we get a tax

refund for that amount? " The whole room went silent. In that moment, the idea

for the Special Needs Tax Credit was born.

It was November of 2006, and my lovely wife, , and I were attending a

Guardianship conference in Ft. Lauderdale. The room was filled with a veritable

" Who's Who " of South Florida Elder Law attorneys and professional guardians. We

attended as Prosperity Life Planning (www.prosperitylifeplanning.org) our small,

educational nonprofit organization, through which we educate and advocate for

parents through the special needs planning process with area attorneys, benefit

consultants, tax and investment professionals.

I had been working with these families for just over two years at that time, and

found the challenge of implementing the legal, social and financial planning

resources for special needs families to be my calling. Unlike New York, where

my stepson with Autism, Ricky, lives in a wonderful group home paid entirely by

Medicaid, Florida families often are hard-pressed to find benefits for supports

and therapies. The " Med-Waiver " program has 17,000 families on its waiting

list. Med-Waiver provides for non-medical but supportive services, such as

housing, transportation, therapies, " day-hab " training, summer programs and

respite.

Through our numerous free consultations, we met families with one, two, even

three young adults with special needs; parents who were surprised to learn they

were no longer the legal guardians of their 18-year olds or older kids.

Surprise turned to shock when they learned that full guardianship might cost

$5,000 in attorney, specialist and court fees.

There they were, with kids who couldn't speak for themselves, kids who lacked

the judgment to make legal, health care or financial decisions for themselves,

and parents unable to afford the $5,000 expense to speak for their child. A

real " Catch-22. "

We immediately began a petition drive through our planning workshops and our

website. Everyone agreed it was a common-sense idea; that MY taxes could come

back to me as a tax refund for the legal expenses of setting up a protective

guardianship for MY own child.

With being a tax expert and accountant, and having her Certified Financial

Planner™ designation, we talked about how this could work. A " refundable tax

credit " from the IRS would be available for someone who paid the expense for

guardianship and/ or a Special Needs Trust, up to a maximum amount of $5,000.

This would reduce their taxes owed dollar-for-dollar, and a check issued for any

remaining balance over their taxes due. This method would especially benefit

lower income families, who might not pay as much in taxes, and receive a refund

for the difference, much like the Earned Income Credit or the Additional Child

Tax Credit currently provide.

On September 11, 2008, we went to Washington, DC, and met with the legislative

assistant to my local representative, Congressman Wexler (D-19th Cong.

District- Boca Raton). We discussed the problem and introduced him to our

proposal. In May, 2009, I received notice that Congressman Wexler would sponsor

legislation to create the Special Needs Tax Credit proposal as we envisioned.

Language for the Bill has been completed, and a Republican co-sponsor has been

identified. While Congressman Wexler recently announced his interest to work in

the nonprofit sector, other Democratic Representatives are being discussed to

co-sponsor the Bill, which would be introduced when finalized.

Simultaneously, in January of 2009, we met with attorney Elaine Bucher in the

Boca Raton office of international law firm Proskauer Rose, LLC. She was

impressed with our proposal, and shortly thereafter, we were told they would

create a Florida nonprofit organization and provide the IRS filing as a

501©(4), Social Welfare Organization, for us pro bono, a task we could not

have afforded. The nonprofit designation for the " Special Needs Tax Credit

Alliance, Inc. " (www.specialneedstaxcredit.org) was finalized in July of 2009.

We actually see this potential revision to the tax code as a civil rights bill,

because " typical " families are not burdened with the expense of $5,000 to speak

for their adult children, or need to spend $1000 to $1500. for a Special Needs

Trust, as typical kids may well have the abilities and opportunities to have

full-time careers, with pension plans or retirement accounts to build over their

working lives.

The First and Fourteenth Amendments were established to provide for Free Speech

and Equal Treatment Under the Law. Yet how can our young adults who may have

cognitive impairments and cannot speak for themselves, enjoy this equal

treatment, if their parents can't afford thousands of dollars in legal fees? No

one is empowered to speak for these millions of Americans.

The Special Needs Tax Credit (SNTC) proposal offers a sensible and affordable

" soft-dollar " approach to solving this problem, while possibly reducing expenses

to the court system. If more people who need a guardian have one, there may be

less expense for Guardians Ad Litem, or court-appointed emergency guardianship,

when no one has previously appointed.

We are in the process of raising $500,000, for a four-year program to build

awareness throughout state and national disability support organizations, as

well as the Elder Law groups and Probate sections of state and national Bar

Associations. Groups such as AARP for seniors will be contacted, as seniors

with dementia and Alzheimer's may need their adult child to become their

Guardian. Other groups in support of the Americans with Disabilities Act and

the ACLU will be called upon to build awareness to their membership, and

finally, members of Congress will be lobbied to expand Democracy to those who

cannot speak for themselves.

" Everyone Deserves to Have a Voice, or Someone to Speak for Them. "

Please contribute to our cause. Donations to the Special Needs Tax Credit

Alliance are not tax deductible to the donor, but funds are utilized tax exempt

by the organization. A petition can be downloaded from the SNTCA website at

www.specialneedstaxcredit.org, and voluntary contributions can be sent to

" Special Needs Tax Credit Alliance, " 4673 Brady Boulevard, Delray Beach, FL

33445, attn: Jaret Vogel, Director (,

info@...).

Reprinted with permission.

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The Special Needs Tax Credit Alliance, Inc. Petition

A 501 ©(4) not for profit Social Welfare Organization

The Corporation (SNTCA) is organized exclusively for promoting the creation of

congressional legislation to amend the Internal Revenue Code of 1986, that will

provide a refundable federal tax credit for legal and other professional fees

associated with establishing legal guardianship or a trust for a person with

disabilities, to lessen the burden on families with a disabled family member,

and providing for the future needs and well-being of such members.

" I support establishment of the Special Needs Tax Credit proposal, to assist

persons with disabilities enjoy a more protected and rewarding quality of life.

My signature attests to my support for this legislation and my desire for my

elected representative in Congress to sponsor and support the passage of this

legislation. "

Name ____________________________________________________________

Signature ______________________________________ Date _________

Address_______________________________________________________________

City ________________________ State ____ Zip __________________

Phone _______________________________

Email ______________________________________

Please sign, date and mail your statement of support to:

Special Needs Tax Credit Alliance, Inc.

Attn: Jaret L. Vogel

4673 Brady Boulevard

Delray Beach, FL 33445

info@...

www.specialneedstaxcredit.org

Your name and contact information will not be sold, rented, traded or

distributed to any other organization for any other purpose.