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    Special Needs Trust?

    Hey, when my dad first did his estate I was just starting out working. He put my inheritance in a Special Needs Trust. Now, years later he is reviewing his estate. I make ok money, I have private health insurance and receive no social benefits. Is there any need for a SNT? or is having my inheritance in a regular trust suitable?

    Jeff C6 Quad So. Cal.

    #2
    What are the provisions of the trust? Are you restricted to what you can use the money for? Is your father still alive?

    (KLD)
    The SCI-Nurses are advanced practice nurses specializing in SCI/D care. They are available to answer questions, provide education, and make suggestions which you should always discuss with your physician/primary health care provider before implementing. Medical diagnosis is not provided, nor do the SCI-Nurses provide nursing or medical care through their responses on the CareCure forums.

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      #3
      Good question for the estate lawyer. Because with aging, a health setback etc... your situation might change more easily than for someone without a SCI. You may retire earlier.

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        #4
        I'm not sure specifically about the tax implications of a special needs trust, but I am looking at opening an ABLE account for myself, purely for the tax benefits and the fact that those assets are at least somewhat sheltered from potential lawsuits. I'm in the same situation as you, in that I will never ever qualify for needs based benefits again (at least in my state) and will probably be able to save enough to comfortably retire in my mid 40s if I choose to do so.

        If a special needs trust doesn't qualify you for any additional tax advantage or shelter the money any better than a traditional trust I don't see where the advantage lies.

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          #5
          Yes my father is alive and there are no restrictions. He just revisits it every five years. I will tell him to ask the estate lawyer. I just thought someone on here might have some insight.

          I'm with Funklab. I have an ABLE account also. I just don't know if it gives me any advantages.

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            #6
            Originally posted by badjefft View Post
            Yes my father is alive and there are no restrictions. He just revisits it every five years. I will tell him to ask the estate lawyer. I just thought someone on here might have some insight.

            I'm with Funklab. I have an ABLE account also. I just don't know if it gives me any advantages.
            Assuming you're maxing out Roth IRA and all retirement options, it gives a tax advantage like a Roth IRA in that the money grows tax free. Investment options are quite limited and there is a fee, but the advantage I'm considering using it for mainly.

            I can't see the situation in which I'd end up qualifying for income/asset based benefits as social security disability income alone would disqualify me from medicaid in my state. This year the income limit is $17k a year and the asset limit is $2,000.

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