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Thread: Special/Supplemental Needs Trusts

  1. #1

    Special/Supplemental Needs Trusts

    Two questions, if I may.

    If I have a SNT established by a parent, and I fund it with my income, would that decrease my taxable income?

    Could said SNT be set up to allow me to rent an apartment in DC for work purposes (say, I want to cover DC legislative activities) while allowing me to retain my primary residence in SC?

    Thanks,

    Steven
    ...it's worse than we thought. it turns out the people at the white house are not secret muslims, they're nerds.

  2. #2
    Steven, without getting into too much depth on my part, my first advice would be to consult an tax attorney on both questions. Over the years, my wife and I have set up trust's for various reasons and I can say a good lawyer can structure a trust to do allmost anything you wish.

    Ms. cherrylips had a slush fund for your DC trip last year right? If you trust the ol gal, Ill keep helping the cause Mr. Edwards.
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  3. #3
    You might do better calling a dept of human services rep familiar with Medicaid in your state for the FAQ's rather than an attorney or an accountant. Trying to find the later schooled in SNT is near impossible.
    And the truth shall set you free.

  4. #4
    Lookup lawyers that are familiar with elder care. There are a couple of attorneys here in New York that deals specifically with trust issues. I'm sure there are some reputable ones in South Carolina. Have you tried contacting your independent living Center?
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  5. #5
    Go for lawyers who specialize in SNT in South Carolina. They'll know the rules, regs, laws of what you can and can't do, how to structre your SNT. A good broker or financial advisor should be able to refer you to attorneys who specialize in the field.

  6. #6
    It's not that big a deal.. most of the larger banks have in-house estate planing/trust/living will, etc dept's and, would be more than happy for you to park some money with them!. And since Steven already has an SNT, just contact the admin of it and voice your wishes.
    DIGG.

  7. #7
    The IRS has identified what money in a "SNTF" can be spent on. Ibelieve they are health care issues and donot cover living costs. Items such as vehicles and homes may be "owned" by the SNTF. You still pay taxes on the trust fund. If an empoyeer agrees, checks can be written tothe SNTF. This can happen with settlements and disability income from a settlement.

    I will try to locate a document and infoon SNTF. You may actually want a different type of fund, but only SNTF protects Federal SSI/SSDI benifits. Hope this helps.
    Every day I wake up is a good one

  8. #8
    Senior Member landrover's Avatar
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    Speaking of a SNT, I'm a bit confused regarding what they can/cannot cover. I have a SNT, and I can't figure out what it covers. Before I asked the trustee, I thought I might get some background info here. I am employed full-time, and am responsible for basically everything I can imagine: room/board, meals, medical supplies not covered by insurance, vehicle maintenance, etc. I am purchasing a new vehicle, and will be responsible for this as well (minus the conversion costs, which will be covered by voc rehab). I also pay all health insurance premiums. So I guess my question then is, what is a SNT for??

  9. #9
    A special needs trust should be written for 'extras'. It can actually be used to pay for anything it is written to pay for, but then the government might decide you don't need a SSI check anymore.

    This is why you need a lawyer to draw it up because it must be very carefully written.

    It should read that it can only be used for "extras" - that which is not essential for you to live. So it would not pay for a primary residence, but it could pay for a vacation home or a cruise. It would not pay for food, but it could pay for cooking classes or a social group that includes dinner out. It would not pay for physical therapy, but it could pay for a gym membership.

    Edited to add - the trust could own a house, but you can't use the money in a trust to buy yourself a house in your name. The house (or car or whatever) that is not an "extra" must be owned by the trust.

  10. #10
    Senior Member landrover's Avatar
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    I no longer receive SSDI, as I've since returned to work. But it seems (well doesn't seem, I AM) that I pay for everything like I mentioned in my previous post. I don't have a problem with that, but if a SNT was set up on my behalf and is intended to cover some of the costs I am incurring, then I do have concerns. That is why I am curious as to what is usually covered.

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