Reply to Low needs ASD - planning for future

Forum Index » Kids With Special Needs and Disabilities

Reply to "Low needs ASD - planning for future "

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous]Not op, can someone talk about ABLE and trust more. Can low support need kid open and use them? I and DH do not expect our 2 low support needs( both high functioning ASD/ADHD) ES kid to take care of us, so we have been trying our best to fund our post retirement fund. The current expenses for kids are high like aftercare care, lessons, therapies and tutoring etc.. Our retirement fund is not that high. We had opened 529 (we reside in MD) accounts for them, but there is not much money in it because we are not sure if they could attend college. Should we try to open ABLE or special need trust? Are they tax deductible? [/quote]

You should open an ABLE account. You can roll your 529 money into the ABLE account. Under the tax code, ABLE accounts are a type of 529 account so they’re eligible for the same tax treatment (ie you can get a deduction for your contributions and withdrawals for eligible expenses are tax free.) The qualifying expenses for an ABLE account are much, much broader than 529 - “disability related expenses” are very broadly defined for ABLE accounts. You can use the money for expenses you have now - the aftercare, tutoring, therapies, lessons, etc. - and also save it to use for college down the road. If they go to college they have the money, but if they don’t they can also use the money for everyday life expenses too.

I think special needs trusts are primarily necessary if you think your child will be reliant on government funded supports as an adult and you anticipate leaving them assets after you die. Many government supports are limited by income (and the thresholds are very very low - having 2k in assets to your name can render you ineligible for some programs) so if your child inherits your assets, may lose government services that are essential for their survival. So if your kid will need government services, and if you’re going to leave them anything, a special needs trusts is warranted.

I think every kid with disabilities that is eligible for an ABLE account should have one. And every parent should consider whether a special needs trusts is necessary. You might not need a special needs trust right now, but you should reassess as time goes on and you see how your child is doing and how your financial life plays out. (You can also hedge your bets and have a will that directs people to create a special needs trusts for anyone beneficiary who meets certain disability criteria at the time of your death so that funds are left to the trust rather than to the disabled beneficiary outright.)[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics