Special Needs Trusts

Friday, November 12, 2010

Press Coverage of Estate Planning this Week (November 12, 2010)

Teresa McUsic writes in the Star-Telegram (Dallas) about how the holidays are an opportune time to discuss finances with elderly parents, many of whom appreciate assistance with finances from people they know and trust. Questions to consider include: who is the parent’s advisor, where are their assets invested, and is the advisor willing to have the client’s children take part in financial discussions and decision-making? McUsic lists other questions that you may want to address. See Holiday Can Be An Ideal Time To Talk to Your Parents About Their Finances (Nov. 11, 2010).

Asher Rubinstein of Forbes reviews estate planning strategies to consider before the end of 2010. His list includes considering a dynasty trust or a Charitable Remainder Trusts (CRT), and making gifts while gift tax rates are historically low. See Estate Planning Moves To Consider Before 2010 is Done (Nov. 10, 2010).

Paul Sullivan of the New York Times reviews the basics of special needs trusts, which are designed to protect the inheritance of a disabled person who is receiving, or expected to receive, government assistance for basic living expenses. One primary challenge, Sullivan states, is administering them correctly, because money cannot go directly to the disabled person, and cannot be spent on certain living expenses. See Exploring Trusts For The Disabled (Nov. 5, 2010).

Friday, August 21, 2009

Pres Coverage of Estate Planning This Week (August 21, 2009)

Melinda Beck of the Wall Street Journal discusses health care advance directives, including how to get them, what you can specify in them, what to do with the forms when completed, and how to have a discussion about health care issues with your family and chosen agent.  See Preparing for the Final Hours (Aug. 18, 2009).

The Wall Street Journal blog, The Juggle, notes that fewer than one-third of Americans have an advance directive and urges readers to take time to get this important document prepared.  See Make Time to Create an Advance Medical Directive (Aug. 20, 2009).

Bob Carlson, editor of Retirement Watch, cautions estate planning clients to expand their focus beyond merely tax planning to include legacy planning, addressing topics such as ensuring financial security, management of one's estate, protecting the estate and managing tax issues. Too often, Carlson says, estate planning is viewed as merely tax planning.  See The Four Goals of Legacy Planning (Aug. 20, 2009).

Timothy O'Sullivan, Esq., writes in the Wichita Eagle that family harmony should be as large a goal as tax reduction when engaging in estate planning.  He includes a few areas where planning more often leads to disharmony.  See Think of Family Harmony as Well as Assets During Estate Planning (Aug. 20, 2009).

Tim Grant of the Pittsburgh Post-Gazette provides an overview of special needs trusts and how creation of a special needs trust for a child with a disability can take a major emotional weight off your shoulders.  See Special-Needs Trusts Can  Provide for Disabled Children (Aug. 18, 2009).

Friday, July 03, 2009

Press Coverage of Estate Planning This Week (July 3, 2009)

H. Michael Okby writes in The Saratogian (Saratoga Springs, N.Y.) about the importance of married couples preserving both estate tax exemptions through use of a credit shelter trust.  While passing all of your assets to your spouse may sound reasonable, this approach could result in unnecessary estate taxes of up to 45 percent later.  See Protect Assets with Credit Shelter Trust (June 28, 2009).

Martin Shenkman, Esq. writes in Financial Planning that estate planning for special needs children is complicated and subject to dangerous misunderstandings.  He lists three common misperceptions and offers some advice and planning tips, including discussing the role of special needs trusts and insurance.  See A Special Plan (July 1, 2009).

Friday, June 26, 2009

Press Coverage of Estate Planning This Week (June 26, 2009)

Matthew M. Wallace, Esq., writes in the TimesHerald.com (Port Huron, Mich.) about one's responsibilities when taking over as trustee of a trust.  See I've Been Named a Trustee -- What Do I Do Now? (June 21, 2009).

Warren Pena writes in The Hour (Norwalk, Conn.) about planning considerations, including special needs trusts, for children with special needs.  See Planning for Your Child with Special Needs (June 22, 2009).

Christopher Yugo, Esq., writes in the Northwest Indiana Times (Munster, Ind.) about the importance of meeting and working with an estate planning attorney directly, not just having your financial planner arrange everything.  See Make Sure You Know Your Estate Plan (June 21, 2009).

Ashlea Ebeling of Forbes.com provides advice on estate planning for those with chronic illnesses.  See More Planning Prescriptions (June 25, 2009).

Victoria Knight of Dow Jones Newswires discusses how naming a relative or close friend the successor trustee of your trust can lead to abuses, and that naming an institutional trustee is sometimes a better approach.  See Elderly Need to Pick Trustees Carefully (June 22, 2009).

Lew Sichelman of the Los Angeles Times recounts the various ways to hold title to a home, including tenancy by the entireties, tenants in common, joint tenancy and sole ownership, with the pros and cons of each approach.  See Homeowners Should Be Careful About How They Hold Title to Properties (June 21, 2009).

Thursday, April 09, 2009

Special Needs Trusts and Taxes

With tax day just around the corner, the Special Needs Alliance has posted two articles on special needs trusts and taxes. The first, Taxation of Special Needs Trusts, provides an excellent overview of the taxation of trusts generally, with an emphasis on special needs trusts. The second, What is a "Qualified Disability Trust" for Federal Income Tax Purposes?, reviews federal tax law provisions that allow some beneficiaries of special needs trusts a tax deduction equal to the personal exemption.

Sunday, February 08, 2009

Handbook Available for Trustees of Special Needs Trusts

The Special Needs Alliance is making available their popular booklet, Administering a Special Needs Trust: A Handbook for Trustees (2009 Ed.). The booklet provides key definitions, important distinctions in types of special needs trusts, eligibility rules, what types of expenditures may be made by a special needs trust, trust administration, and income taxation issues affecting special needs trusts.