Planning for Life

SNT vs. ABLE Account: Which Makes More Sense for You

Posted by Harry S. Margolis on October 15, 2019

By Harry S. Margolis

ABLE-accounts-special-needs-trusts-Wellesley-MA

We have prepared a handout to assist beneficiaries of Supplemental Security Income and other public benefits programs to determine whether they're better off using ABLE accounts or special needs trusts, or both.

Both ABLE accounts and SNTs permit the beneficiary to maintain eligibility for public benefits programs will being the beneficiary of funds held in reserve, but both also have their advantages and drawbacks. Here are a few of them:

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Topics: special needs planning, supplemental needs trusts, Special Needs Trust, ABLE Accounts, Attainable Savings Plan, Supplemental Security Income

So You've Been Appointed Trustee, Now What?

Posted by Harry S. Margolis on August 3, 2016

By Harry S. Margolis

trustee-duties-responsibilities-Wellesley-MA

Congratulations. You have been appointed trustee of a trust.  That is a strong vote of confidence in your judgment and probity. Unfortunately, it is also a major responsibility. Following is a short description of your duties.

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Topics: trusts, supplemental needs trusts

Supplemental Needs Trusts: Do They Need a Separate Tax ID?

Posted by Harry S. Margolis on July 27, 2015

By Harry S. Margolis

Supplemental-Needs-Trusts-Special-Needs-Tax-ID-number-Wellesley-MA

 

When creating a supplemental needs trust (“SNT”) for our clients, we are often asked whether the trust requires a separate Tax ID number. The short answer is, “Not until you fund it.”  The majority of our clients who create SNTs leave them unfunded until they die, at which point the trust needs its own tax ID number. A tax ID number is like a Social Security number for a trust, which the trust must use for its investment and bank accounts and for reporting its interest and dividend income. The trust files an annual 1041 tax return, as opposed to the 1040 return used by individuals.

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Topics: supplemental needs trusts

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