What Can I Use to Fund a Special Needs Trust for My Child?
A special needs trust is a common way for parents to prepare for the future care of a child with special needs. The child can use the proceeds from a special needs trust to pay for certain purchases and services …
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HUD Regulations Effective January 1, 2024, Exclude Special Needs Trusts Proceeds from Income for Purposes of Low-Income Housing
The Housing Opportunity through Modernization Act (HOTMA) became law in January 2016. However, final regulations to implement certain sections of the law are now going into effect. The final rule to implement Sections 102, 103, and 104 of HOTMA took effect on …
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Should I Leave My Estate to the Sibling of My Child with Special Needs? Should the Sibling Be Named as the Child’s Guardian When I Am No Longer Able to Serve as Guardian?
When you have a child with special needs, your estate planning may look significantly different. Many parents traditionally leave their estate to their children in equal shares. Parents also routinely designate a guardian for their children if they pass away …
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Qualified Disability Trust Exemption Increases to $5,050 in 2024
A qualified disability trust (QDT) is a type of trust that qualifies for a specific federal tax exemption and is designed to benefit an individual with special needs. Most special needs trusts qualify as QDTs. The amount of this federal …
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Is a Pooled Special Needs Trust Right for My Child?
It is important to understand the benefits of pooled special needs trusts. Parents of children with special needs often want to set aside funds to provide for them in the future. Grandparents and other relatives also may want to leave …
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Why Do I Need a Special Needs Trust Attorney?
When you engage in estate planning, a major goal is often to provide for your children after you are gone. If you have a child with special needs, you understand that your child may need financial support for the rest …
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Medicaid Estate Recovery: What Kinds of Accounts and Assets Will the Government Seek “Pay Back” From After My Loved One with Special Needs Passes Away?
Under current law, Illinois generally must pursue Medicaid estate recovery from the estates of Medicaid recipients. As a result, when the Medicaid beneficiary passes away, the state of Illinois typically will pursue the beneficiary’s assets for repayment of the Medicaid …
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What Type of Attorney Handles Special Needs Trusts?
Families with children who have special needs often must make significant decisions throughout their lifetimes. One such decision involves choosing a qualified attorney to assist them with their special needs planning for their child, which often includes creating special needs …
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Financial Resources for Parents of Children with Special Needs
Supporting children with special needs typically goes far beyond age 18 and often is a lifelong commitment. Children with special needs may also have more financial needs than other children, especially if they have complex medical problems or require a …
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How to Fund a Special Needs Trust
A special needs trust is often the best way for parents to plan for the future care of a child. The proceeds of a special needs trust can help pay for items and services that government assistance doesn’t cover, like …
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Duties of the Trustee of a Special Needs Trust
Many parents who have a child with special needs establish a special needs trust to plan for their future. The proceeds of a special needs trust can help pay for things for that child that government assistance doesn’t cover, such …
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Who Should Be the Trustee of My Child’s Special Needs Trust?
A Third Party Special Needs Trust is a common mechanism that parents use as a repository for any inheritance their child with special needs will receive after their death or for gifts from another family member. By creating a special …
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Special Needs Trust Improvement Act Signed into Law
The Special Needs Trust (SNT) Improvement Act of 2022 is now in effect after being signed into law as part of the much larger Consolidated Appropriations Act of 2023. It amends The Secure Act of 2019. The Special Needs Alliance , a national …
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How Should My Estate Plan Be Different if I Have a Child with Special Needs?
An estate plan for children with special needs requires careful and mindful planning. Parents of children with special needs provide critical support for their children, not only as their loving parents but also as their advocates, protectors, and financial support. …
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Testamentary v. Free-Standing Special Needs Trusts
Adding a child with special needs to your family can bring change and uncertainty to your life. You may contemplate what the future holds for your child and how to best plan for your child’s future. While you can never …
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I Have a Special Needs Trust for My Child. How Can I Use These Funds for My Child Without Affecting His Public Benefits?
Parents most commonly establish special needs trusts for their children to provide financial support for them while not jeopardizing their eligibility for necessary public benefits. A special needs trust attorney can assist the parents in setting up the trust or …
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Taxes and Special Needs Trusts: What You Need to Know
Special needs trusts are an excellent way to provide additional financial support for a child with special needs without endangering eligibility for means-tested government benefits. However, these trusts do have potential tax implications, both for the trust itself and for …
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Are Illinois ABLE Accounts Subject to Medicaid Recovery or Clawback? Conflicting Guidance from the State and Federal Governments
Historically, the state of Illinois, like many states, implemented a “payback” or “clawback” provision that allowed it to seek reimbursement from ABLE accounts after a beneficiary’s death. The state could seize any remaining funds in ABLE accounts to pay for …
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How Social Security Evaluates A Trust As A Countable Resource
A person’s resources affect the ability to qualify for crucial government benefits. The Social Security Administration (SSA) sets forth resource limits for SSI applicants and recipients. For example, to qualify for Supplemental Security Income (SSI), countable resources must not be worth more …
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How The SECURE Act Affects Special Needs Planning – The Eligible Designated Beneficiary
The Setting Every Community Up for Retirement Enhancement (SECURE) Act went into effect on January 1, 2020. The SECURE Act affects special needs planning, in particular, inherited IRAs owned by third-party special needs trusts. Historically, these types of trusts provide …
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What Is A Pooled Trust?
Beneficiaries of government programs such as Supplemental Security Income (SSI) and Medicaid must have limited income to qualify for these benefits. They may lose these crucial benefits if they receive an inheritance, an accident settlement, or simply accumulate too much …
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I’ve Established A Third Party Special Needs Trust, What’s Next?
Establishing a third-party special needs trust is a major step in providing for the needs of an individual with disabilities. Special needs trusts are complex and may be difficult to understand and administer. Once the trust documents have been signed, …
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What Expenses Can A Special Needs Trust Pay?
The purpose of a third party special needs trust is to provide persons with disabilities the means to augment their quality of life while enabling them to remain eligible for needs-based public benefits. While a special needs trust is a valuable tool …
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Social Security Recipients to Pocket 5.9% Benefit Increase
Recently, the federal government announced the cost-of-living adjustment (COLA) for 2022. This adjustment is applied to federal benefits to be disbursed in 2022. Many analysts expected that the COLA would be the highest since 1983 when it was 7.4 percent. …
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Accounting Of Special Needs Trusts
Accounting for special needs trusts is not much different than accounting for other types of trusts. A trustee has a legal obligation to account for certain trust activities to beneficiaries and other interested parties. The trustee must adhere to federal …
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Understanding Eligibility Rules for Means-Tested Programs, Part Two
The second part of this blog will discuss the way that income is characterized for a means-tested entitlement program and how it affects a benefit award. The federal Supplemental Security Income (SSI) program rules distinguish between and characterize income in …
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Understanding Eligibility Rules for Means-Tested Programs, Part One
Eligibility rules for many critical essential entitlements are means-based. Thus, any income and assets received by an individual with disabilities will affect the benefit awards that they potentially receive from these types of entitlement programs. Therefore, the effect of these …
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Distinguishing the Different Types of Special Needs Trusts – Third-Party Special Needs Trusts
The two entirely different types of trusts that are usually referred to as “special needs” trusts are treated differently for tax purposes, benefit determinations, and court intervention. We already discussed Self-Settled Special Needs Trusts in our prior blog post. The …
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Distinguishing the Different Types of Special Needs Trusts – Self-Settled Special Needs Trusts
Greater awareness of disabilities in the last few decades has caused many of us to appreciate the need for special needs trusts. In most cases, the primary, essential purpose of a special needs trust is to improve the quality of …
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Some Important Issues To Consider When Creating A Special Needs Trust
A child with special needs changes the life of a family in many ways. The parents of a child with special needs embark on an unplanned journey knowing little of what the future holds for their child. Planning for an …
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