Does anyone here handle Special Needs Trusts?
Eileen Dunn, CPA
Eileen Dunn, CPA P.C.
150 Corporate Plaza
Islandia, NY 11749
phone: (631) 582-4259
fax: (631) 582-4549
We'll get you there.
Special Needs Trusts are taxable at a very low threshold $100 and the tax rates are less generous than individual rates. Income can't be distributed to the beneficiary because it will affect their services and eligibility for medicaid which pays for the services.
Able accounts are nice but there is a medicaid clawback when the disabled person passes away. Seeing some states are removing the medicaid clawback, and I believe we can invest in any state, is the Able account better for up to $100,000?
From disability scoop, "At least nine states - Pennsylvania, Kansas, Illinois, Oregon, Maryland, California, West Virginia, Arkansas and Florida - have passed legislation eliminating the ability of their Medicaid programs to claim funds remaining in ABLE accounts of people with disabilities who have died."