How We Actually Use ABLE Act Accounts
We’ve written and talked about ABLE Act accounts before. But we’d like to revisit the subject with a very practical update. Let’s answer the question: how do we actually use ABLE Act accounts in our practice today? Start with a recap: what’s ABLE? Before we get practical, though, we do need to review the concepts. […]
Who Gets Special Needs Trust Balance on Death of the Beneficiary?
A special needs trust, of course, is for the primary benefit of the individual with a disability. But what happens on the death of the beneficiary? The trust might spell out its “remainder” beneficiaries — the ones who receive the balance on the death of the disabled beneficiary. But sometimes the trust just says that […]
Disabled Beneficiary Graduates; Trust Terminated
It’s not too often that a special needs trust beneficiary “graduates” from their disability. But a heartwarming Michigan case gave us a chance to reflect on the possibility this week. A little background: a special needs trust can be established for a beneficiary who is “disabled” by Social Security standards. It can even contain funds […]
Modification of a Special Needs Trust
Is modification of a special needs trust possible? Even if the trust is irrevocable, and its terms are clear? The short answer is “yes” — at least in some circumstances. A recent Texas Supreme Court case illuminates the principles. And the story is pretty interesting, to boot. “Dick” Poe was a prominent businessman from El […]
Special Needs Trust Terminated When Beneficiary Moved
What happens to a special needs trust when the beneficiary moves to a new state? Will the trust continue, or transfer to the control of the new state? One special needs trust beneficiary in Colorado discovered the Centennial State’s odd rule: a special needs trust is terminated when the beneficiary moves. Parker Wilson’s story Young […]
“Letter of Instruction” Helps Document Your Wishes
When we prepare your estate plan, we try to capture your wishes as thoroughly and precisely as possible. It can be a challenge, though, to cover every variable. You may also have preferences that are hard to capture in the legal language of trusts, wills and powers of attorney. That’s why we encourage clients to […]
Should You Establish a Special Trust for Your Child?
Let’s talk about a special trust for your child. Not necessarily a “special needs” trust, but a trust for a beneficiary who can not manage their own finances. What’s in a name? Search for information about special needs trusts, and you’ll find plenty of entries. But you’ll also find plenty of confusion. What’s the difference […]
The 2020 Budget Act and Special Needs Trusts
Late in December Congress adopted its 2020 budget. The law goes by the poetic name the “Further Consolidated Appropriations Act, 2020“. We’ve already told you about the SECURE Act, part of the budget law. But there’s more in this complicated law. For our practices, it’s particularly important to know about the relationship between the budget […]
Explaining Third-Party Special Needs Trusts
What is the difference between a third-party special needs trust and a self-settled trust? The distinction can be way more confusing than it ought to be. The trusts are similar in a number of ways, but there are important differences. A few months ago, we explained self-settled special needs trusts in this space. Those are […]
Hopeful Planning Fails in Two Special Needs Cases
Hopeful planning: when your estate plan is based around your hope that everything will turn out fine. We see it a lot. Often it works. Too often it does not. Two cases we read last week illustrate how hopeful planning can go wrong when facts change after the planner’s death. Both happened to be California […]
The ABLE Act in Arizona
Now that the ABLE Act in Arizona is a little more than a year old, it might be a good time to review the rules, when it makes sense to open an ABLE Act account and what limitations you might face. Our podcast episode this week also deals with ABLE Act accounts. Between our two […]
Explaining Self-Settled Special Needs Trusts
New clients frequently come to us after they have been told that they need to “get” or “set up” a special needs trust. They often don’t realize that there are different kinds of special needs trusts. Sometimes a self-settled special needs trust is the right answer. In some cases the right approach is a third-party […]
