Establishing the Financial Needs of the Special Needs Beneficiary

1. Academy of Special Needs Planners Austin, TX Saturday, March 23rd 2013 Establishing the Financial Needs of the Special Needs Beneficiary *The information contained in this seminar is being provided with the understanding that it is not intended to be interpreted as specific legal advice. Individuals are encouraged to seek the guidance of their own personal legal advisor.

2. Important Disclosures • The information provided is not written or intended as specific tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. MassMutual, its employees and representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel.

3. What is SpecialCareTM? • A program that offers information, specialists, and financial solutions to people with disabilities and other special needs and their families • SpecialCare begins by providing your clients access to a compilation of information – from what they need to know to provide the best care to their loved one to how to manage the needs of themselves and other family members • For parents of a loved one with special needs there is a poignant realization that there may come a time, through sickness, disability or death, when you will not be able to provide care for them • This planning process involves a broad range of decisions and plans designed to secure the future

4. The Washington Group Special Care Planning Team • The Washington Group Special Care Planning Team began in 2004. Jerry L. Hulick, CLU, ChFC, ChSNC, CLTC, the Group’s Senior Planner with over 40 years of experience in the financial services industry, leads our team of over 10 experienced planners, all trained and certified in the unique area of Special Care Planning. Jerry holds the Chartered Special Needs Consultant designation (ChSNC). We have offices in Fairfax, Virginia and Bethesda, Maryland. Along with a team of professionals, I offer guidance to my clients to help them reach their financial goals. Our mission is to help make a positive difference in the lives of individuals with special needs, their caregivers, and other family members. Our knowledgeable and dedicated Special Care Planners assist families with developing valuable financial strategies and creating strategic financial solutions that integrate with Government programs. Through our network of other professionals and specialists, we can provide appropriate referrals to assist families with their unique situations. We also help coordinate family education and communication.

5. Life Planning Stages Traditional Planning Special Needs Planning • Wealth Distribution • Gifts • Inheritances • Wealth Distribution • Long Term Care Planning • Charitable Giving • Lifetime Support • Trust Management • Residential Needs • Cash Reserves • Transition Plans • Government Programs • Home Purchase • College Planning • Lifetime Supplemental Needs • Special Care Vision • Legal & Estate Planning • Guardianship • Beneficiaries • Letter of Intent • Cash Management / Budgeting • Cash Reserves • Family Needs • Legal & Estate Planning

6. Life Planning Stages Timeline • - Individual Service or Support • - Residential • - Employment • Social & Recreation • - SSDI/Self • - SSI • Medicaid • Guardianship • College/College - Diagnosis -Early Intervention - Waivers • SSDI • - DAC • - Retirement • - Medicare - Lifetime Supplemental Needs - Estate Distribution - Individual Education Plans - Waivers Remainder Interest Transition Planning Stage I Stage II Stage III Stage IV Parents’ Age 65 Child’s Death Age 3 Age 15 Age 18 Age 22 Parents’ Death Birth Stage I – Birth to Age 3 Stage II – Age 3 to 17+ Stage III – Age 17 to Parents / Caregivers Retirement Stage IV – Rest of Life Traditional family planning timeline Special Needs planning timeline

7. The Washington Group Special Care Planning Team Fact Finder Client A: Name: Address: SS#: DOB: Home Phone: Cell Phone: Email: Marital Status: Previously Married: Job Title: Employer: HR Contact: Life Expectancy: Planned Retirement Age: Client B: Name: Address: SS#: DOB: Home Phone: Cell Phone: Email: Marital Status: Previously Married: Job Title: Employer: HR Contact: Life Expectancy: Planned Retirement Age: Children/Dependents: Name(s): DOB: Child of A/B: Name(s): DOB: Child of A/B: Name(s): DOB: Child of A/B: Securities, investment advisory and financial planning services are offered by qualified Investment Advisor Representatives of MML Investor Services, Inc. The personal information that you provide in this worksheet may be protected from disclosure under Federal and State Law. This form has been designed for use by you and your financial services representative. Speak with him or her about their firm’s privacy policy concerning your personal information.

8. Advisors:Name & Company: Type: Phone Number:Name & Company: Type: Phone Number:Name & Company: Type: Phone Number: Physicians & Therapists: Primary Care Physician Name: Address: Phone Number: Pediatrician Name: Address: Phone Number: Ear Nose Throat (ENT) Name: Address: Phone Number: Gastrologist Name: Address: Phone Number: Geneticist Name: Address: Phone Number: Dentist Name: Address: Phone Number: Orthodontist Name: Address: Phone Number: Psychiatrist Name: Address: Phone Number: Developmental Psychiatrist Name: Address: Phone Number: ABA Therapist Name: Address: Phone Number: Social Worker Name: Address: Phone Number: Case Coordinator Name: Address: Phone Number: PSC Name: Address: Phone Number: Nutritionist Name: Address: Phone Number: Physical Therapist Name: Address: Phone Number: Occupational Therapist Name: Address: Phone Number: Speech Therapist Name: Address: Phone Number: Education Advocate Name: Address: Phone Number: Other: Address: Phone Number: Other: Address: Phone Number: Securities, investment advisory and financial planning services are offered by qualified Investment Advisor Representatives of MML Investor Services, Inc. The personal information that you provide in this worksheet may be protected from disclosure under Federal and State Law. This form has been designed for use by you and your financial services representative. Speak with him or her about their firm’s privacy policy concerning your personal information.

9. Financial Planning Document Checklist • Latest pay-stub(s) • Last two years tax returns • Any other income statements • List of all monthly/annual expense/cash flow analysis • List of any taxable/non-taxable gifts made – date, beneficiary, amount • Employer benefit package/information • Education savings plans/529 Plans • Latest bank statements • Home(s) – date purchased, purchase amounts, market value, mortgage info (terms, rates, original and outstanding principal) • Rental property – date purchased, latest valuation/market value, debt, rental income • Any other debt/liability statements – terms, principal, outstanding amounts, credit card (limits, interest rates, incentives, etc.) • Investment statements (securities & annuities) – including cost basis and regular savings plan • Retirement/Pension account statements (personal and work related) – including contributions, investment choices, formulas, benefit cancelation, survivorship option • Stock Option Plans • Annual Social Security estimate statements, SSI and/or SSDI statements, registered payee statements • HIPP statements • Life Insurance policies • Long-Term Care Insurance policies • Disability Insurance policies • Property & Casualty Insurance (homeowner and auto) • Wills, Trusts, POAs, Medical Directives, Health Proxy’s and Guardianship • Business Entities • Completed Risk Tolerance questionnaire Securities, investment advisory and financial planning services are offered by qualified Investment Advisor Representatives of MML Investor Services, Inc. The personal information that you provide in this worksheet may be protected from disclosure under Federal and State Law. This form has been designed for use by you and your financial services representative. Speak with him or her about their firm’s privacy policy concerning your personal information.

10. Addendum for MassMutual’s SpecialCare Program • Questions: • After completing the Advanced Fact Finder and determining that your client has a family member or heir with a disability • or other special needs, please use this addendum to gain information relevant to their unique needs. • What is the nature of the special need individual’s disability? • What is the long-term prognosis for disability? • Does the individual with special needs have independent decision-making capability? • - If no, has a guardian been named? • Has the client or the special need individual executed appropriate estate planning documents? • Is the special need individual person able to work? • - What is the earning potential? • - What is the likelihood of continuing gainful employment in the future? • Does the special need individual have independent assets? • - If yes, what is the source? Earnings Gift or inheritance Settlement or judgment • Is the special need individual named as designated beneficiary of life insurance or other contracts? • Is the special need individual a beneficiary of any trusts? • Is the special need individual expected to receive additional assets from inheritance or settlements? • Is the special need individual currently receiving care? • - If yes, is care provided in client’s home or elsewhere?

11. Is the special need individual receiving therapy or special education? • - If yes, what is the current cost? How long will therapy or education continue? • Does the special need individual now or eventually need institutional care? • - If so, what are the current and future costs? • What are the current and future costs of: • - Lifetime support • - Rehabilitative programs • - Medical Care • - Room and board • How long can the Client continue to provide custodial care? • How long can the Client continue to provide financial assistance? • Where will the special need individual live when the Client is no longer able to help? • - Can the special need individual live alone? • - Is a group community home a possibility? • - Is there a family member or friend who would be willing to provide housing or support? • How much? • To what extent does the Client expect to provide financially for the special need individual after retirement or death? • To what extent does the Client wish to provide for other family members? • Is the Client comfortable with the maturity and dependency of the other family members? • - If yes, would they be willing to participate in the future care or decision-making process for the special need individual? • 21. Has the client received legal advice from a competent specialist?

12. Special Needs Expense Information : • Further define the life care needs of the person with the disability and whether the expenses are incurred currently (today) • or are being projected for a future date.

14. MML Investors Services, Inc.Springfield, MA Risk Comfort Profile Client’s Name: RR’s Name: Date Prepared: How to record your preferences: To the right of each question, please circle the letter which best indicates your response. A = Generally Agree D = Don’t Agree N = Not Sure

15. First Session • Concerns • Objectives • Considerations • Priorities • Family Dynamics • Vision

16. Events & Snapshots • Catastrophic • Caregiver / Parent 1 • Caregiver / Parent 2 • Retirement • Disability Qualify Needs and Income Replacement

17. Gross Needs • Using discounted inflation & return assumptions for present value • Providing studies, examples, resources

18. Remember… The goal is to achieve the best quality of life for your family and bring peace of mind that your family member with special needs will have the assistance they need, in every aspect of their life

19. The Washington GroupSpecialCareTM Planning Team • Fairfax, VA – (703) 865-6502 • Bethesda, MD – (301)581-7208 • E-mail – jhulick@financialguide.com • Web – www.massmutual.com/specialcare