by Karen B. Mariscal
Read Moreby Karen B. Mariscal
Read MoreTopics: Special Needs Child, Special Needs Trust, special needs planning, special needs, trustee, trusts
When our autistic son was 8 years old, he was a holy terror. That was true when he was younger than 8 and older than 8 (he settled down around the time of puberty, for which I am eternally grateful), but I am focusing on age 8 right now. We had two younger boys as well, then ages 5 and 4. So when I asked my sister Laura whether she would be the guardian of our children, and take over if something happened to my husband and me, it was with great trepidation. Laura knew full well what was going on in our house, and how difficult a request I was making. She responded, without hesitation, “I’d be honored.” I have tears in my eyes as I write this, as it never fails to get to me, even 17 years later.
Topics: Caregivers, Intellectually Disabled, Special Needs Child, Special Needs Trust, trusts, disability, autism, special needs planning
Much of your savings may be in your 401(k)’s and IRAs. It is important to designate the proper beneficiaries for these accounts, so that your beneficiaries do not have to pay taxes on the funds prematurely. Unfortunately when a beneficiary has special needs, it gets complicated.
If the beneficiary receives the IRAs and 401(k)’s directly, the required minimum distributions (RMDs) could prevent your child from receiving the government benefits he needs. But if you designate a special needs trust as the beneficiary of a retirement account, there could be adverse income tax consequences.
Fortunately, with proper drafting, such tax results usually can be prevented. People have written entire books on this subject -- this is our attempt to summarize the basic issues.
Read MoreTopics: Special Needs Trust, Retirement Planning, Retirement Benefits, Required Minimum Distributions
The story of a Massachusetts attorney who received a three-month suspension for failing to fulfill his duties as co-trustee of a special needs trust should serve as a cautionary tale for any attorney (or anyone else for that matter) asked to step into this role. The attorney was only two years out of law school when in 2003 a client asked him to become the independent co-trustee of a special needs trust for the benefit of the client’s son.
Topics: trusts, special needs planning, Special Needs Trust
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