New Law Could Require Changes To Your Special Needs Trust Plan
The new law specifically allows retirement money that is paid to a Special Needs Trust for a disabled person to be paid out over the lifetime of the disabled person. Whereas, retirement money paid to most adults that is not disabled must be withdrawn over ten years. Accordingly, it may actually be MORE tax efficient now to name a Special Needs Trust as beneficiary of an IRA.
Reasons to set up a Third Party Supplemental Needs Trust as an Accumulation IRA Stretch Trust
In a previous post, I described the Reasons to Set up a 3rd Party Supplemental Needs Trust as an Irrevocable Life Insurance Trust. The same Third Party Supplemental Needs Trust can also be set up as an IRA Stretch Trust. If a Special Needs person is named as beneficiary of an IRA, 401k, 403b or any other […]
Reasons to set up a 3rd Party Supplemental Needs Trust as an Irrevocable Life Insurance Trust
Recently, I wrote a post explaining the differences between a First Party Special Needs Trust and a Third Party Supplemental Needs Trust. As you are aware, the goal of a Special Needs Trust or a Supplemental Needs Trust is to provide financial resources to a Special Needs Person in a way that will not cause them […]
NJ Special Needs Trusts: Can the Trustee Buy Clothing?
Although the federal government clearly changed the rules in 2005 to allow a Trustee of a First Party Special Needs Trust to buy an unlimited amount of clothing for person receiving Medicaid and SSI, there is still a lot of confusion regarding this issue in New Jersey. New Jersey Administrative Code Section 10:71-4.11, which was […]
Right to Name Guardian for Minor Children When Parents are Separated or Divorced
I was discussing the affect of a divorcee naming a guardian for minor children in a Will with a few colleagues the other day and I thought I would share some of our findings. When there is a custody dispute between a natural parent and a third party, the law regarding who has custody of the child […]
Termination Clause in Special Needs Trust
The Social Security Administration has issued new rules, SI 01120.199, related to the early termination of Self Settled Special Needs Trusts created on or after January 1, 2000. Self Settled Special Needs Trusts, also known as First Party Special Needs Trusts established under Section 1917(d)(4)(A) of the Social Security Act. are designed to avoid being […]
What is a Self Settled Special Needs Trust?
There are generally two types of private special needs trusts: Third Party Special Needs Trusts; and Self Settled Special Needs Trusts (also known as First Party Special Needs Trusts or D-4A Trusts). A person who is receiving (or about to receive) Medicaid and Supplemental Security Income (SSI) may wish to consider establishing a Special Needs […]
Special Needs Planning in NJ – Part 4 of 4
Special Needs Trusts and Supplemental Needs Trusts In Part IV of this Series, I want to discuss the role of Special Needs Trusts and Supplemental Needs Trusts in estate planning. “Special Needs Trusts” and “Supplemental Needs Trusts” are terms to describe trusts designed to provide benefits to a person in a way that will preserve […]
Special Needs Planning in NJ – Part 3 of 4
Estate Planning for A Special Needs Child In Part III of this Series, I want to discuss estate planning issues for parents of a special needs child. A typical estate plan for parents without a special needs child includes: Will; Financial Power Of Attorney; Health Care Power of Attorney; Advanced Health Care Directive; and Naming […]