Palin Speaks Out On Special Needs Trusts

re: Palin Speaks Out On Special Needs Trusts

Kirsten Izatt — Mon, 27 Oct 2008 14:12:05 GMT

I'm an attorney who sets up Special Needs Trusts for parents every month. These trust are not just for the rich; they are meant to hold the parent's assets after the parents die.

Although some parents are living paycheck to paycheck, many have insurance or a house and when they die, they need to direct their money to a Special Needs Trust that has already been set up.

If the Special Needs Trust is not set up before the parents die, then special planning will have to be done after the fact to protect the inheritance. This planning is costly and stressful. Every parent who plans to leave money to a child with special needs should get this taken care of during their life.

As to the alleged tax increase on Special Needs Trusts, I am at a loss. Special Needs Trusts file their own tax returns--a fiduciary tax return. I haven't heard any candidate talk about increasing fiduciary tax return rates. They are already quite high, but with planning, they can be minimized.

The whole notion about taxing families with less or more than $ 250,000 in income has nothing to do with Special Needs Trust taxation. Nothing at all!

re: Palin Speaks Out On Special Needs Trusts

Courtney — Mon, 27 Oct 2008 12:26:47 GMT

A special needs trust is a powerful tool for families with special needs children at all income levels.

There are asset and income limits disabled children and adults must meet in order for them to qualify for benefits from the government, including medicaid and medicare. Funds held in a special needs trust are not counted when determining asset levels, and certain distributions from these trusts are not counted as income. This allows grandparents and other relatives to help the family with expenses without threatening the disabled individual's benefits. It also allows parents and other relatives to provide for the disabled individual in their wills.

For someone who may have difficulty supporting themselves, or for families who have very little and depend on government benefits to keep their family afloat, a special needs trust can allow them to accept even a small gift or bequest without risk of losing those benefits.

That said, they are also very commonly used by wealthy families with special needs children to ensure that they will be well provided for throughout their lives. I haven't scoured Obama's tax plan to see how these trusts would be affected, but it seems likely to me that only the largest of these trusts, if any, would see an increase in taxes.

re: Palin Speaks Out On Special Needs Trusts

Knitty — Sun, 26 Oct 2008 18:31:30 GMT

We're talking about a woman who, in the SAME SPEECH, insisted that we make research for autism a priority and then mocked the research that's actually making progress ("fruit fly! I kid you not! Tee-hee!") She knows NOTHING. It just astounds me that anyone listens to her.

re: Palin Speaks Out On Special Needs Trusts

Sabrina — Sun, 26 Oct 2008 17:47:38 GMT

We have a special needs child and we're living paycheck to paycheck. Can't send him to daycare because the ones in the area cannot take proper care of him, and he's not "disabled enough" to fall under a lot of programs specifically for disabled kids. I'm stuck at home not making one red cent to go towards his heathcare. Our "special needs trust"? It's called a credit card.

re: Palin Speaks Out On Special Needs Trusts

LogicalMama — Sun, 26 Oct 2008 17:13:41 GMT

Clearly, she has not clue. Again, her speech was mere talking points when it was supposed to be a policy speech. She spoke about "special needs" children and how "special" they are. She didn't give clear tactics and policy reform that she is working on. Lest we forget, McCain is going to cut spending across the board except for military and vets!!

Also, not to take away from special needs children, but there are special needs adults as well (and all these children grow to adulthood!). A host of adults fall under the American Disabilities Act and they are also in need of some assistance. She declined to mention anything about those adults, or the FACT that John McCain has voted against policies that assist them!!!!!!!!!!!!

re: Palin Speaks Out On Special Needs Trusts

Arrow Tech IV — Sun, 26 Oct 2008 16:45:06 GMT

The video clip appears to be missing.

re: Palin Speaks Out On Special Needs Trusts

Ashers mom — Sun, 26 Oct 2008 14:22:37 GMT

I don't know anything about special trusts for special needs children, probably because I don't know any families with special needs children who have the means to set one up. From what I've seen most families are just trying their best to make it every month. Once again, I don't think she has any idea what is coming out of her mouth.