8 Quick Facts about Special Needs Trusts (SNT)
Families with children with special needs have questions about Special Needs Trusts (SNT), including:
· What is a Special Needs Trust (SNT)?
· Should I set up a Special Needs Trust (SNT) for my child?
· How will planning in this area help my child live a purposeful and impactful life?
There are many things to consider as you and your family plan for your child and the future. No two individuals with special needs are exactly alike. As such, no two special needs plans will be identical.
Here are EIGHT quick facts about Special Needs Trusts that you may find helpful as you think through this important area of planning:
1. Cost: Setting up a SNT can cost $2,000-$5,000, or possibly even more.
2. Taxes: Earnings on a SNT are taxed.
3. Means-tested benefits: A SNT has no effect on means-tested benefits.
4. Uses: SNT funds can be spent broadly.
5. Account ownership: A SNT is owned by a family member, not the beneficiary.
6. Accessing funds: SNTs are a long term investment strategy and not meant to provide frequent disbursements.
7. Remaining balances: Upon the death of the beneficiary, funds remaining in a SNT go to the estate and/or probate.
8. Age eligibility: There are no restrictions on age of onset or type of disability for SNTs.
At the end of the day, it’s important to remember that the main purpose of special needs planning is to enable your child to live a GREAT life– today, tomorrow, and every day in the future. A Special Needs Trusts is a tool that may help you achieve this goal.Is a Special Needs Trust (SNT) right for your family? Our team would be happy to talk with you to help you make this decision. Use the following link to view Founder & President of ENABLE, Phillip Clark’s calendar and select a convenient time for a call to discuss your needs and concerns: https://enablesnp.com/contact/