ABLE accounts vs Special needs trust
HTML-код
- Опубликовано: 2 июл 2024
- In this video, I talk about ABLE Accounts vs Special Needs Trusts so that you know when to use each, why to use them, and how they work together. I compare the two by showing you who can benefit, who can fund, how many accounts and trusts a person can have, who controls it, and who inherits it when the person with the beneficiary dies. I also answer questions for each about how much you can fund in a year, caps for the accounts, how the income is taxed, and what types of distributions can be made. Finally, I discuss gift taxes and preserving SSI Benefits, and also discuss who should be setting up ABLE accounts and Special Needs Trusts for you.
Physician Diagnosis Form
acrobat.adobe.com/id/urn:aaid...
Time Stamps
00:00 Introduction
0:43 Third Party Special Needs Trust
1:22 ABLE account - 529A Plan
3:43 ABLE account vs Special Needs Trust Comparison Chart
8:03 Gift Taxes
9:36 SSI Benefits
11:44 Who should set up these accounts
✅ Please Subscribe to my channel I put out a new video every week →
/ @ellencookman-estatepl...
✅ Download the Estate Planning Webinar 👇👇
cookmanlaw.com/estate-plannin...
✅ FREE Parenting When You’re Gone Guide 👇👇
cookmanlaw.com/estate-plannin...
✅ Download the Limited Conservatorship Webinar 👇👇
cookmanlaw.com/limited-conser...
✅ Schedule Call with Intake Team 👇👇
cookmanlaw.com/talk-to-intake....
💥 Follow me on Social Media 💥
Facebook: / cookmanlaw
LinkedIn: / ellen-cookman-jd-ll-m-...
Website: cookmanlaw.com/
Newsletter: cookmanlaw.com/cl-blog/
Looking forward to connecting!
Please call or text with any Estate Planning questions: (650) 690-2571
The content of this RUclips channel is provided for informational purposes only and is not intended to constitute legal advice. You should not rely upon any information contained on this RUclips channel for legal advice. Viewing this RUclips channel is not intended to and shall not create an attorney-client relationship between you and Ellen Cookman or Cookman Law, PC. Messages or other forms of communication that you transmit to this RUclips channel will not create an attorney-client relationship and thus information contained in such communications may not be protected as privileged. Neither Ellen Cookman nor Cookman Law, PC makes any representation, warranty, or guarantee about the accuracy of the information contained in this RUclips channel or in links to other RUclips channels or websites. This RUclips channel is provided "as is," and does not represent any outcome or result from viewing this channel. Your use viewing of this RUclips channel is at your own risk. You enjoy this RUclips channel and its contents only for personal, non-commercial purposes. Neither Ellen Cookman, Cookman Law, PC, nor anyone acting on their behalf, will be liable under any circumstances for damages of any kind.
© 2023 Cookman Law. All rights reserved.
#estateplan #ABLEaccounts #california #ellencookman
![Eminem - Tobey (feat. Big Sean & Babytron) [Official Audio]](http://i.ytimg.com/vi/9xn0OHEZZ8Q/mqdefault.jpg)
Good morning could you please add this to the Fiduciary Security Allied Legal Professional Interdiction Trust Policy Protection Plan. To avoid document crime with NICER 837PC Global Network of Template Schedule Scenario Clauses A to Z Permission Validation Administration fiduciaries? So a counterfeit DPOA can’t steal it starting in July 2024?
How are distributions from a third party special needs trust to an ABLE account taxed? Would such a distribution from a third party special needs trust to an ABLE account be counted as income to the beneficary by Medicaid?
My soon has already past 26 years old. Can he still open an able account.
Yes, as long as your son's disability manifested before age 26, he can apply for an ABLE account at any age
Hi Ellen,
please advise in regard the special need trust on top my regular trust@@ellencookman-EstatePlanningSNT
What about the Federal and some states, estate tax that a successor is responsible for after death of the beneficiary?
For the SNT, after the beneficiary dies, if the trust assets remaining are higher than the estate tax exemption (which is $13.61 million now, going down to about $7 mm in 2026 - so this would be unusual!), the any estate tax exposure would be paid out of the remaining trust assets. For an ABLE account, the maximum amount it can be funded (in CA) is $529K, so estate taxes wouldn’t be an issue here.
What about inheritance while on SSI? If the child is the beneficiary of a retirement account, can they stay in that investment plan without it affecting their benefits?
From my experience, it has to go into an irrevocable special needs trust, means the Trustee has full control over the money... that can be devastating for the disabled and apparentlyno oversight. I've heard of someone who used a pooled Trust through Lutheran brotherhood that was able to use the funds.
Currently, 18,000 per year can go to an Able Account and the beneficiary has access to that. So at least part could go to the Able, and if your lucky, maybe the Trustee will move the max over each year. BUT these Trustees and state Able accounts sometimes don't have a clue how to handle money... see my post above. I'd recommend Fidelity Able Account they know how to get things done and are very professional, plus they have security. I was with MN Able and twice they offered me info without asking any verification. And even after that, the security process is weak. They also sound like kids who literally can't figure out how to write a check and get it in the mail. No training. They are on their 4th attempt to try and transfer my money to Fidelity.
Oops, and yes, money in the Able Account, as long as it is used for the beneficiary doesn't affect benefits. Up to $100,000 if the person is on SSI, or much higher depending on the limit for the plan that they choose if they are on SSDI.
The irrevocable Trust can have any dollar amount and not affect SSDI or medicaid benefits, but the beneficiary gets no say in how the money is handled or how it is used. It's basically given to the Trust who may or may not follow what's laid out in the document. I'm not sure if there's a limit if on SSI.
Is giving money to my disabled daughter tax didactable?
In California, a gift to a disabled person or their ABLE account is not deductible for income tax purposes. In some other states, I have heard there might be income tax deductions for a contribution to that state’s ABLE account.
I live in Minnesota, can I set up able account for my special need son or only for those who live in CA?
Most states now have established their own ABLE accounts. I looked online and this looks like the Minnesota ABLE program: savewithable.com/mn/home.html
Every state.
Choose any state you want, but MN is a nightmare!
Fidelity offers an Able Account too. They have good security, and know how to handle money, and have good returns. They have been very efficient helpful and kind through all these mistakes from MN.
MN is on their 4th attempt to transfer my account to Fidelity. No one knows what they are doing there, but they are sure they figured out this time...well, maybe next time... darn let's try again. Sigh. They make multiple errors on every step of the way. And on their third attempt, they filed out the check wrong!!! I'm not getting any updates on this current attempt yet. It would be funny if it wasn't so painful.
But...I'm not a child. 😢
Did you become disabled before you were 26? If so you still qualify for Able.
They will be raising that to 46 if I remember right.