When your loved ones read over your will during the probate process, they will distribute your assets to your intended beneficiaries almost immediately. If you have a special needs adult child, this means that they will receive any money you leave them in one lump sum. That lump sum can hinder their ability to qualify for social security disability benefits.
Special needs trusts and ABLE accounts are ways to set aside assets for your adult child without hindering their ability to receive government benefits.
The NW Elder Law in Kennewick, WA can help you set up a special needs trust or ABLE account for your child in no time. To ask about our services, call 509-537-0453 today.
Special needs trusts and ABLE accounts both offer similar advantages in Kennewick, WA, but they differ in a few key ways. Consider these points before you choose one over the other:
Taxes—any funds you use to create a special needs trust are tax-deductible and unavailable to creditors. Still, you can run into high trust tax rates if new money isn’t paid out to the beneficiary in a timely matter. ABLE accounts remain tax-free without a time limit.
Age—in order to qualify for an ABLE account, your child must have lived with their disability since they were at least 26 years old. If your child became disabled later in life, they’d do better with a special needs trust.
Legacy—your child’s special needs trust can be passed down to their children. If they owned an ABLE account at the time of their passing, any money leftover in it would most likely be taken by the government.
To find out which service is right for you, call 509-537-0453 now. We’ll help you make an informed decision for your family in the Kennewick, WA area.