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The Long Blue Line (Summer 2020)

The United States Coast Guard's retiree newsletter and more.

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ADDITIONAL ITEMS<br />

U.S. COAST GUARD RETIREE INFORMATION<br />

CG PAY & PERSONNEL CENTER, RETIREE &<br />

ANNUITANT SERVICES (PPC-RAS)<br />

www.dcms.uscg.mil/ppc/ras<br />

Survivor Benefit Plan (SBP)<br />

Special Needs Trust<br />

Do you select SBP coverage for your child(ren)<br />

when you retired and do you have a permanently<br />

incapacitated child? That child is covered by<br />

SBP for life. Perhaps you are aware that if you<br />

pass away and your incapacitated child begins<br />

receiving an SBP annuity, it may disqualify the<br />

child, due to the income the child is receiving,<br />

from other federal and state benefits.<br />

A Special Needs Trust is a legal document that<br />

establishes an account to oversee financial<br />

assets of an incapacitated child. When a<br />

Special Needs Trust is designated as the<br />

beneficiary of an SBP annuity, SBP annuity<br />

payments are paid to the Special Needs<br />

Trust for the benefit of the incapacitated<br />

child. A key benefit of the Special Needs<br />

Trust is that SBP income does not disqualify<br />

the child from other state or federal aid that<br />

might have been jeopardized if the disabled<br />

child directly received SBP income. Disabled<br />

or incapacitated children are those who are<br />

incapable of self-support because of a physical<br />

or mental in-capacity which existed before the<br />

child’s 18th birthday or was incurred before<br />

age 22 while the child was pursuing a full-time<br />

course of study.<br />

Special Needs Trusts are very technical<br />

documents that should be prepared by a<br />

qualified attorney. Additionally, medical<br />

paperwork must be filed with the Coast Guard<br />

PPC to establish the child’s disability and<br />

continued entitlement to SBP child coverage<br />

after the age of 18/22. If you have a disabled<br />

child named as your SBP beneficiary, we<br />

recommend you consult with an attorney<br />

experienced with Special Needs Trusts and<br />

that you contact the PPC/RAS office or the PPC<br />

Legal Office with any other questions.<br />

62 SUMMER <strong>2020</strong><br />

THE LONG BLUE LINE

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