When I received an inheritance 4 years ago I choice not to create a Special Needs Trust for these 3 reasons. 1) Working not receiving SSI, or Medicaid only government benefit is HUD housing; which counts withdraws from Special Needs Trusts as income for calculating rent. 2) Higher tax rates for Special Needs Trusts vs personal income tax rate; being in 12% US Federal tax bracket qualified dividends are taxed at 0%. 3) Some things you want to spend money on like vacations do not qualify as an expense for a Special Needs Trust.
@lilianah3505
Ай бұрын
How trustees in those cases ended up in court? Who took legal actions against them and why?
@ellencookman-EstatePlanningSNT
Ай бұрын
I believe those cases had court-supervised SNTs, so the court was reviewing the accounting and disallowed certain distributions.
@remo8969
Ай бұрын
Thank you very much for your amazingly informative videos.
@waynecmontgomery
Ай бұрын
Great video!!! Quick question if one created a nonprofit I believe you would be exempt from ISM when it comes to paying rent? The government states that housing offered by nonprofits do NOT count as a resource as long as the nonprofit is NOT obligated to provide the shelter so your SSI would NOT be affected I am assuming?
@ellencookman-EstatePlanningSNT
Ай бұрын
Good question! The answer seems pretty complicated, but it’s covered under the POMS: secure.ssa.gov/poms.nsf/lnx/0500835712
@waynecmontgomery
Ай бұрын
@@ellencookman-EstatePlanningSNT It seems pretty clear to me that they use the "Church Amendment" or SMA if there is any question. And it also seems pretty clear under the example they use that I am right. Nonprofits as long as they are not paid by a third-party private source to provide you housing. They can provide you housing for FREE !!!
@2010katak
Ай бұрын
Ellen, would you please do a video on Family Opportunity Mortgages and SNTs? Fannie Mae and FreddieMac still allow FOMs
@ellencookman-EstatePlanningSNT
Ай бұрын
That looks like an interesting opportunity! I’ll look into it.
@2010katak
Ай бұрын
@@ellencookman-EstatePlanningSNT that would be wonderful. I’ve read that although as a formal program both Fannie Mar and Freddie Mac have discontinued it, both still offer it.
@ellencookman-EstatePlanningSNT
Ай бұрын
Subscribe to our Newsletter to stay up to date on all things Estate Planning and more! app.lawmatics.com/forms/share/3944a0fd-07f7-4c4a-8138-9e32e51367bc
@nightgalaxy-pz2bc
Ай бұрын
Can you give an example of trust distribution standard language so that the trust satisfies means tested public benefits agencies criteria but also gives the trustee maximum flexibility for distributions, even if it means a reduction in benefits?
@ellencookman-EstatePlanningSNT
Ай бұрын
Here’s a snippet of some language we’ve used: “Our Trustee may apply for Beneficiary’s benefit so much of the income and principal (even to the extent of the whole) as our Trustee deems advisable in our Trustee’s sole and absolute discretion”
@macoeur1122
Ай бұрын
this is all reat news but does it only apply in California? I live in KS and would love to be able to settle this question once and for all.
@ellencookman-EstatePlanningSNT
Ай бұрын
Unfortunately I’m not familiar with laws in Kansas. You might want to consult with a special needs attorney there; here is a website where you can find one: specialneedsanswers.com/about-us
@heatherbryant4197
Ай бұрын
Very helpful, but I have a couple questions: That list of 93 things includes "Cash to Beneficiary," but I thought you said you aren't supposed to distribute cash to the beneficiary? Or is it just that cash is included on the list because you technically can, though it could interfere with government benefits? Another question: I've heard that the SNT should not be used to purchase food, yet the trust I'm trustee of specifically states money can be spent on "special dietary needs." So where do I draw the line? Is this one of those situations where the trustee has to use their own discretion as to what purchases qualify? As a hypothetical example, let's say the beneficiary is diabetic. Would a sugar-free version of a food qualify under "special dietary needs," or is it just considered food? Would it have to be some special prescription diet to qualify? Or non-food items related to dietary needs?
@ellencookman-EstatePlanningSNT
Ай бұрын
Yes, you can theoretically distribute cash to a beneficiary who’s not receiving needs-based public benefits. I believe the prohibition against distribution SNT funds for food stemmed from food being part of the ISM deduction for SSI benefits, but that was eliminated around 2006, so SNTs should now be able to make distributions for food. Of course you still need to follow the terms of the trust.
@starlacroix
Ай бұрын
Hello, Ellen! I am on SSDI + a QMB medicaid program rn . I inherited some stocks from my Gpa.. Could you let me know more about getting a credit card ( i can qualify) to use.. Would it be in my name?, Would i be able to use the cc benifits with it? If i make an online or in store purchase with it is that fine? Do i just keep the receipt? My Uncle in another state is the Trustee and would pay the CC bill. Do know particular banks that have cc accts i can attach to it? Chase maybe? I don't even know what to call this type of container to the cc people.😂 Plus , ill need to lnow how to add another inheritance sometime down the road.. Thank you for all the energy you give us on KZitem 🙏💜
@ellencookman-EstatePlanningSNT
Ай бұрын
A lot of trustees of SNTs get a credit card, and then add the beneficiary as a signor, with an upper spending limit per month - that way the trustee is responsible for paying the credit card but the beneficiary has the flexibility to use the card. You might also want to look into TrueLink cards, which can be helpful debit cards that a beneficiary can use.
Пікірлер: 19