Special Needs Trust / Qualified Disability Trust

[GLGACCT]

Was working with an elderly client on other matters, when she told me she has updated her will which includes provisions for a Special Need Trust for an older child collecting SSI and ask if I would work with her other children and or their accountants to answer any questions on her finances if need be.  I will not be handling either the Estate or Trust.  Wanted to do some reading on SNT's and QDT's and looking for more information?  Does anyone have any recommended articles, links or recommendation for CPE courses regarding the matter?

Thanks in advance

 

[BulldogTom]

Is it an ABLE account or a SNT account?   It can be confusing to interpret what the client is telling us.

If it is a SNT, then all income is taxed to the trustee.   Not a tax advantaged plan.   Take a close look at what she is doing and see if it makes sense for what she is trying to accomplish.

Tom
Longview, TX

[GLGACCT]

It is an SNT with the standard Health, Education, Maintenance, and Support clauses from what I am told.  The trust will be funded upon her death to preserve her disabled adult child's SSI benefits.  Her other children will just inherit from the estate. I wanted to familiarize myself with more information on the SNT to see what expenses the trust can deduct, as well as if the trustee has to pass any income via a K-1 to the beneficiary and what that will do to his SSI reporting requirements.  The client has been working with a lawyer to update the Trust documents that were created many years ago.  Her other children will be the trustees.  Wanted to educate myself on these types of reporting.

Thanks