Interplay of Tax and Eligibility Rules in 529 Accounts and ABLE Accounts. Stephen W. Dale, JD, LL.M

Size: px
Start display at page:

Download "Interplay of Tax and Eligibility Rules in 529 Accounts and ABLE Accounts. Stephen W. Dale, JD, LL.M"

Transcription

1 2017 National Conference on Special Needs Planning and Special Needs Trusts Interplay of Tax and Eligibility Rules in 529 Accounts and ABLE Accounts Stephen W. Dale, JD, LL.M

2 Interplay of Tax and Eligibility Rules in 529 and ABLE Accounts Many proponents of this new tool tout the fact that that this new tool is tax free in nature compared special needs trusts. Below is a common claim; While it is possible that a special needs trust could be subject to high tax rates, While funds in SNTs and ABLE accounts are both disregarded for means tested benefits like Medicaid and SSI, income from ABLE accounts is tax free while SNTs are taxed at high rates. with a minimal amount of planning, often a special needs trust will be a superior tax planning tool compared to an ABLE Account.

3 An Overview of the ABLE Act

4 An Overview of the ABLE Act Other key features: Contributions into an ABLE account could be made by any person; Contributions would not be tax deductible; Income earned by the accounts would not be taxed; Account withdrawals, including portions attributable to investment earnings generated by the account, for qualified expenses would not be taxable;

5 Qualified Disability Expenses Qualified disability expenses are any expenses made for the designated beneficiary related to their disability, including: education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management and administrative services, legal fees, expenses for oversight and monitoring, funeral and burial expenses. 5

6 Qualified Disability Expenses A Tale of 2 Administrative Agencies Many ABLE advocates have taken the position that ANY use of an ABLE Account based on the information in the next slide. Compare this with the Social Security Administration s position that the mere use of the word caregiver in a self settled trust makes the entire trust a resource because they take the harshest view possible

7 Qualified Disability Expenses (h) Qualified disability expenses (1) In general. Qualified disability expenses, as defined in 1.529A 1(b)(16), are expenses incurred that relate to the blindness or disability of the designated beneficiary of the ABLE account and are for the benefit of that designated beneficiary in maintaining or improving his or her health, independence, or quality of life. Such expenses include, but are not limited to, expenses related to the designated beneficiary's education, housing, transportation, employment training and support, assistive technology and related services, personal support services, health, prevention and wellness, financial management and administrative services, legal fees, expenses for oversight and monitoring, and funeral and burial expenses, as well as other expenses that may be identified from time to time in future guidance published in the Internal Revenue Bulletin. See (d)(2) of this chapter. Qualified disability expenses include basic living expenses and are not limited to items for which there is a medical necessity or which solely benefit a disabled individual. A qualified ABLE program must establish safeguards to distinguish between distributions used for the payment of qualified disability expenses and other distributions, and to permit the identification of the amounts distributed for housing expenses as that term is defined for purposes of the Supplemental Security Income program of the Social Security Administration.

8 Penalties if Used for Non Qualified Expenses

9 Penalties if Used for Non Qualified Expenses Example Bob over a decade saves $50,000, and over that period the account earns $10,000 for a total of $60,000. If Bob were to use the $60,000 for a down payment on a home, no taxes would be due.

10 Penalties if Used for Non Qualified Expenses If instead Bob were to use $5,000 to pay for gambling, the $5,000 would be taxable, but how much would the hit be? To figure that out we need to look at a traditional 529 plan.

11 Exceptions to the Penalty Pule for a Traditional 529 Plan? No penalty is due if If the beneficiary dies or becomes disabled If the student decides to attend a U.S. Military Academy If the student receives a scholarship In all of these cases the earnings portion of the withdrawal will incur income tax.

12 Traditional 529 Plan and 10% Penalty The 10% additional tax doesn't apply to distributions. made because the designated beneficiary is disabled. A person is considered to be disabled if he or she shows proof that he or she can't do any substantial gainful activity because of his or her physical or mental condition. A physician must determine that his or her condition can be expected to result in death or to be of long continued and indefinite duration.

13 Earnings will also be subject to tax as ordinary income at your tax rate Non qualified withdrawals will transform a 529 plan into a taxable investment. 529 plans generally allow the custodian of the 529 Plan to direct the withdrawal to the beneficiary. If the contributor was able to deduct the original contribution on his or her state income tax return, the contributor will usually have to report additional state "recapture" income.

14 Tuition and fees Books Computers technology, related equipment and internet access Special needs equipment Some room and board expenses must be at least ½ time student Additional expenses of special needs beneficiaries: These include certain services and equipment that a special needs student would require, such as wheelchairs and transportation costs, which are generally considered a nonqualified expense. Qualified withdrawals

15 Taxable Earnings for Non Qualified Withdrawals. Use the following steps to figure the taxable part. Multiply the total distributed earnings shown on Form 1099 Q, box 2, by a fraction. The numerator (top part) is the adjusted qualified education expenses paid during the year and the denominator (bottom part) is the total amount distributed during the year. Subtract the amount figured in (1) from the total distributed earnings. The result is the amount the beneficiary must include in income. Report it on Form 1040 or Form 1040NR, line 21.

16 Taxable Earnings for Non Qualified Withdrawals. The tax form will be sent to either the participant (account owner) or beneficiary depending on the recipient of the distribution. Generally, the beneficiary is listed as the recipient if the distribution is made for the direct benefit of the beneficiary or to an eligible educational institution for the benefit of the beneficiary. The participant will be listed as the recipient on all other distributions.

17 Example 1 In 2009, Sara Clarke's parents opened a savings account for her with a QTP maintained by their state government. Over the years they contributed $18,000 to the account. The total balance in the account was $27,000 on the date the distribution was made.

18 Example 1 In the summer of 2016, Sara enrolled in college and had $8,300 of qualified education expenses for the rest of the year. She paid her college expenses from the following sources. Gift from parents $1,600 Partial tuition scholarship (tax free) 3,100 QTP distribution 5,300

19 Example 1 Before Sara can determine the taxable part of her QTP distribution, she must reduce her total qualified education expenses by any taxfree educational assistance. Total qualified education expenses $8,300 Minus: Tax free educational assistance 3,100 Equals: Adjusted qualified education expenses $5,200 Since the remaining expenses ($5,200) are less than the QTP distribution, part of the earnings will be taxable. Sara's Form 1099 Q shows that $950 of the QTP distribution is earnings.

20 Example 1 Sara figures the taxable part of the distributed earnings as follows. Sara must include $18 in income (Form 1040, line 21) as distributed QTP earnings not used for adjusted qualified education expenses.

21 What is an Eligible Education Institution? An eligible educational institution is any college, university, vocational school, or other post secondary educational institution eligible to participate in a student aid program administered by the U.S. Department of Education. It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit making) post secondary institutions. You can look up schools using the Department of Education s federal school code database, or ask the school if it is eligible.

22 The ABLE Act and Taxes Compared to a Special Needs Trust 22

23 Income Taxes Comparison with a SNT Need to focus on all tax options One value of an ABLE Account is that it is tax free like a 529 plan Probably as simple as it gets A special needs trust can often qualify as a Qualified Disability Trust and many distributions are deductible at the beneficiaries tax level Requires tax return for trust and beneficiary 23

24 Qualified Disability Trusts From the Special Needs Alliance 24

25 Income Taxes Striking a Balance ABLE Account compared to Special Needs Trust If a 3rd party special needs trust is drafted as a Qualified Disability Trust It has a full $4,050 exemption in 2016, & all distributions from the Trust for the benefit of the beneficiary are taxed to the beneficiary, AND The beneficiary has his/her own, 2nd exemption of $4,050, & a standard deduction in 2016 of $6,300. A 3rd party special needs trust can shelter a total of $14,400 in 2016 of taxable income with a standard deduction Beneficiaries with large medical expenditures may be able to shelter more with itemized deductions. 25

26 Income Taxes Striking a Balance ABLE Account compared to Special Needs Trust An ABLE Account (s) with $100,000 (maximum not to lose SSI) would need to earn over 14% for any income tax benefit over a 3rd party SNT. Keep in mind the ABLE Account is subject to a Medicaid Payback. 26

27 Income Taxes Striking a Balance ABLE Account compared to Special Needs Trust To compare income taxes between an ABLE Account and a 3 rd party special needs trust for a benefits recipient receiving SSI and/or Medicaid it is important to understand the difference between benefits income and taxable income. 27

28 Income and Income

29 What is Income? Benefits income is not the same as taxable income This concept is often confused by Social Security and Medicaid workers you must be prepared to educate them about their own rules 29

30 Taxable Income For purposes of trusts and taxable income, distribution of income is either distribution directly to, or for the benefit of the beneficiary. 30

31 Benefits Income For purposes of needs based benefits, income is cash, or anything that can be used for food, or shelter, unless it is exempt. 31

32 Compliance Issues of 3 rd Party SNTs Where a trust is created by a third party for the benefit of someone other than the grantor the trust will be a separate taxpayer. The trust will have its own taxpayer identification number require annual state and federal fiduciary income tax returns. To the extent that distributions have been made to the beneficiary even inkind, the trust will carry out income to the beneficiary and a K 1 given to the beneficiary. The K 1 will report that income has been paid to the beneficiary and will include the beneficiary's social security number. 32

33 Benefits Income = Taxable Income Example If the Trustee of a Special Needs Trust pays the telephone bill of the beneficiary directly from a Special Needs Trust, the beneficiary has received a benefit and therefore has received taxable income to the extent it is made up of DNI (Distributable Net Income) In this example, the beneficiary did not receive any income for benefits purposes because the beneficiary did not receive cash, or food clothing or shelter. 33

34 Possible Deductible Expenses In addition to being able to deduct direct medical care, below is an example of other expenses that might be deductible; Special school instruction (which can include lodging, meals, transportation and other expenses not normally deductible). This deduction requires the school to focus on adaptive education for people with neurological or physical limitations. Home modifications required due to disability. Travel and registration costs for conferences and seminars if a doctor will write a letter explaining how the conference will help deal with his/her special needs, the costs may be deductible as a medical expense. Attendant care at work. If your child has a job that requires attendant care, the portion of those costs not covered by other programs may be deductible.

35 Example Appreciated Stock to Trust with Annual Contribution to ABLE Account Archie has a nephew named Michael who is on SSI and Medicaid and he would like to make a gift of $100,000 of appreciated stock with a basis of $10,000 into Michaels ABLE Account. Michael is fully competent and can establish his ABLE Account as well as mange it. The problem is twofold, the ABLE Account can only accept $14,000 a year, and to make the gifts directly into the ABLE Account Archie would need to sell the stocks and realize the gain, and distribute the after tax funds to the ABLE Account. If Archie gifts the stock to Michael to sell then he would lose eligibility to his SSI and Medicaid the calendar month he receives the stock, and would remain ineligible until his resources drop below $2,000.

36 Example Appreciated Stock to Trust with Annual Contribution to ABLE Account Archie creates an irrevocable 3 rd party special needs trust with Gloria as the trustee. Archie transfers the stock into Michael s special needs trust and then Gloria sells $14,000 a year of the stock and transfers the funds into the ABLE Account. Each year the trust is eligible for the $4,050 qualified disability trust exemption, and the gain realized from the gain of the stock will likely be less than the gain realized from the sale.

37 Example Appreciated Stock to Trust with Annual Contribution to ABLE Account From page 4 of Form 1041 ES access/f1041es_accessible.pdf

38 The ABLE Act Gift and Estate Taxes 38

39 The ABLE Act Gift and Estate Taxes ABLE Accounts have as one of it s benefits that funds gifted to an ABLE Account are exempt from gift and estate taxes. This segment will explore gift and estate taxes and the ABLE Act and help the viewer determining when gift or estate taxes are an issue and when they are not. 39

40 Gift and Estate Tax Benefit for the 0.14 % The Center on Budget and Policy Priorities estimates that only the richest 0.14 percent of Americans pay any estate tax. The gift and estate tax is a boogie man for most of us. Beware some states like Illinois have estate taxes. Texas and California does not we are Pick Up States 40

41 Gift Tax Gift for the.14% The problem with a special needs trust is that by its nature gifts to the a special needs trust are not considered a completed gift. But here is the reality of the situation. 41

42 Gift Tax Gift for the.14% Let s say you were to make a gift into your child s special needs trust which was properly drafted for estate tax purposes. Because the trust is not a completed gift, you can t use your annual $14,000 federal gift exclusion, you will need to use part of your $5,500,000 lifetime exclusion. 42

43 The ABLE Act and Estate Taxes If you pass away in 2016 you can pass up to $5,500,000 to anyone you like, including your child s special needs trust, without paying one cent of gift or estate tax. If you were to give $50,000 to your child s special needs trust right now, you would still have a coupon allowing you to give another $5,450,000 tax free during your lifetime or upon your death. 43

44 When Might the Gift or Estate Tax Exemption for ABLE Accounts Matter The vast majority of Americans are not affected by gift and estate taxes under todays laws. When analyzing whether this is a situation one needs to look at 2 levels of the gift. The effect on the giver The effect on the receiver 44

45 Example A Disability Carole Tiny Tim has a disability that began before the age of 26, he is now 30 and his parents Bob and Emily have established an ABLE Account for him, as well as an irrevocable 3 rd party special needs trust. 45

46 Example A Disability Carole Uncle Ebinezer wants to make a gift of $14,000 a year for 10 years for Tiny. Uncle Ebinezer has a large estate worth more than $6,000,

47 Example A Disability Carole If he makes the gift to the special needs trust and made no other gifts during his lifetime he would only be able to leave $5, 360,000 estate tax free ($5,500,000 less $140,000) if he died in This effectively would cost his estate about $60,000 in estate taxes. This assumes no cost of living increase for the gift or estate tax exemption. 47

48 Example A Disability Carole If he were to make the gift to Tiny s ABLE Account the gift would be exempt from being counted for gift and estate taxes and his $5,500,000 gift and estate tax exemption remains intact. The ABLE Account would be subject to a lien when Tiny dies for any Medicaid used from the time the account was established 48

49 Example A Disability Carole Uncle Charles wants to match Uncle Ebinezer s generosity he wants to make a series of gifts of $14,000 a year to benefit Tiny totaling $140,000 by Charles has an estate less than $1,000,000 and is not likely to have an estate tax when he passes away. 49

50 Example A Disability Carole He is not concerned about gift of estate taxes because it is very unlikely his estate when he passes will come even close to $5,500,000, and makes his gift directly to Tiny s special needs trust. 50

51 The Effect on the Giver As we demonstrated making a gift that is not complete merely uses part of one s gift and estate tax coupon. For most of us there is little or no risk of actually paying any estate tax at all. 51

52 2017 National Conference on Special Needs Planning and Special Needs Trusts Interplay of Tax and Eligibility Rules in 529 Accounts and ABLE Accounts Stephen W. Dale, JD, LL.M

Coverdell Education Savings Account (ESA)

Coverdell Education Savings Account (ESA) 7. Coverdell Education Savings Account (ESA) Introduction If your modified adjusted gross income (MAGI) is less than $110,000 ($220,000 if filing a joint return), you may be able to establish a Coverdell

More information

Education Tax Benefits

Education Tax Benefits Education Tax Benefits i ALL RIGHTS RESERVED. NO PART OF THIS COURSE MAY BE REPRODUCED IN ANY FORM OR BY ANY MEANS WITHOUT THE WRITTEN PERMISSION OF THE PUBLISHER. Purchase of a course includes a license

More information

DON T PUT YOUR MONEY IN YOUR MATTRESS! Learning different ways to plan for your family s future

DON T PUT YOUR MONEY IN YOUR MATTRESS! Learning different ways to plan for your family s future DON T PUT YOUR MONEY IN YOUR MATTRESS! Learning different ways to plan for your family s future Dreams & Futures 1 We all have dreams For millions of Americans, we dream and plan of Owning a home Having

More information

Analysis of Funding Options for Special Needs Planning

Analysis of Funding Options for Special Needs Planning Analysis of Funding Options for Planning Payback Income 1 Created and Managed by Who can serve as ee Hire/Fire/Change ee Successor ees Authority to remove ee Authority to make investment decisions Control

More information

Improving the Quality of Life with a Trust / MinnesotABLE Account

Improving the Quality of Life with a Trust / MinnesotABLE Account Improving the Quality of Life with a Trust / MinnesotABLE Account Lutheran Social Service of Minnesota April 2018 Larry Piumbroeck Outreach Representative Kimberly Watson Director Pooled Trust Services

More information

How can I or my family member qualify for an ABLE account?

How can I or my family member qualify for an ABLE account? ABLE Fact Sheet Top ABLE Account Questions How can I or my family member qualify for an ABLE account? First, the individual s disability must have occurred before age 26. Second, the individual must essentially

More information

Montana ABLE Accounts. Theresa Baldry

Montana ABLE Accounts. Theresa Baldry Montana ABLE Accounts Theresa Baldry ABLE Act within Law: The Stephen Beck, Jr. Achieving a Better Life Experience (ABLE) Act: Created options for qualified individuals with disabilities and their families

More information

Special Needs Beneficiaries

Special Needs Beneficiaries Guiding you through life. SALES STRATEGY Special Needs Beneficiaries Planning For Your Loved Ones The unique care of a family member with special needs can often be a significant concern for clients, and

More information

Presented By: Michael J. Wittick Attorney & Counselor at Law Member, WealthCounsel LLC

Presented By: Michael J. Wittick Attorney & Counselor at Law Member, WealthCounsel LLC Issues in Special Needs Trust Planning Presented By: Michael J. Wittick Attorney & Counselor at Law Member, WealthCounsel LLC Facts of Life Persons with disabilities are living longer and public benefits

More information

Special Needs Beneficiaries

Special Needs Beneficiaries CLIENT GUIDE Advanced Markets Special Needs Beneficiaries Planning For Your Loved Ones John Hancock Life Insurance Company (U.S.A.) (John Hancock) John Hancock Life Insurance Company of New York (John

More information

Special Needs Beneficiaries

Special Needs Beneficiaries UNderwriterservice 412-281-0600 www.ubsnet.com ubs@ubsnet.com CLIENT GUIDE Special Needs Beneficiaries Planning For Your Loved Ones John Hancock Life Insurance Company (U.S.A.) (John Hancock) John Hancock

More information

COMPARISON OF 529 ABLE ACCOUNTS, SPECIAL NEEDS TRUSTS AND POOLED SPECIAL NEEDS TRUSTS

COMPARISON OF 529 ABLE ACCOUNTS, SPECIAL NEEDS TRUSTS AND POOLED SPECIAL NEEDS TRUSTS COMPARISON OF 529 ABLE ACCOUNTS, SPECIAL NEEDS TRUSTS AND POOLED SPECIAL NEEDS TRUSTS LAW OFFICE OF RANDY HOPE STEEN, LTD. WWW.RSTEENLAW.COM Able Account Who is Eligible? Are there the age restrictions?

More information

ILLINOIS 529 COLLEGE SAVINGS PLAN

ILLINOIS 529 COLLEGE SAVINGS PLAN ILLINOIS 529 COLLEGE SAVINGS PLAN Your children deserve an opportunity for higher education, and you can help them achieve it. Whether your kids are learning to walk or are in their teenage years, it

More information

NextGen College Investing Plan. An investment for a lifetime of achievement

NextGen College Investing Plan. An investment for a lifetime of achievement NextGen College Investing Plan An investment for a lifetime of achievement An investment for a lifetime of achievement... begins today Education is the soul of a society as it passes from one generation

More information

SUPPLEMENT DATED APRIL 2018 TO THE ACHIEVE MONTANA PROGRAM DESCRIPTION DATED OCTOBER 2015

SUPPLEMENT DATED APRIL 2018 TO THE ACHIEVE MONTANA PROGRAM DESCRIPTION DATED OCTOBER 2015 Please file this Supplement to the Achieve Montana Program Descriptions with your records. SUPPLEMENT DATED APRIL 2018 TO THE ACHIEVE MONTANA PROGRAM DESCRIPTION DATED OCTOBER 2015 This Supplement describes

More information

The Essentials of Special Needs Planning

The Essentials of Special Needs Planning The Essentials of Special Needs Planning Lesley M. Mehalick, J.D., LL.M. and Alissa B. Gorman, J.D., LL.M. McAndrews Law Office, P.C. Berwyn, PA I. Introduction a. What is Special Needs Planning? i. Estate

More information

Your guide to Coverdell Education Savings Accounts. Coverdell Education Savings Account Disclosure Statement and Custodial Agreement

Your guide to Coverdell Education Savings Accounts. Coverdell Education Savings Account Disclosure Statement and Custodial Agreement Your guide to Coverdell Education Savings Accounts Coverdell Education Savings Account Disclosure Statement and Custodial Agreement Your guide to Coverdell Education Savings Accounts This section of the

More information

1 OCTOBER 2018 ARTISAN PARTNERS FUNDS. Coverdell Education Savings Account Disclosure Statement & Custodial Agreement

1 OCTOBER 2018 ARTISAN PARTNERS FUNDS. Coverdell Education Savings Account Disclosure Statement & Custodial Agreement 1 OCTOBER 2018 ARTISAN PARTNERS FUNDS Coverdell Education Savings Account Disclosure Statement & Custodial Agreement Coverdell Education Savings Account General Information... 1 Important Note... 1 Introduction...

More information

City/State/Zip Relationship to Child Account Number Amount of Deposit

City/State/Zip Relationship to Child Account Number Amount of Deposit ESA APPLICATION Child/Student (Designated Beneficiary) Contributor (Depositor) - - - - Social Security Number Social Security Number - - Address Date of Birth Address Phone Number - - City/State/Zip Phone

More information

Plan Disclosure Booklet. Administration and Trustee: The Oregon 529 Savings Board

Plan Disclosure Booklet. Administration and Trustee: The Oregon 529 Savings Board Plan Disclosure Booklet Administration and Trustee: The Oregon 529 Savings Board March 20, 2018 Amounts invested under the ABLE for ALL Savings Plan are not guaranteed or insured by the State of Oregon,

More information

POOLED SPECIAL NEEDS TRUSTS. Future planning for your loved one with a disability

POOLED SPECIAL NEEDS TRUSTS. Future planning for your loved one with a disability POOLED SPECIAL NEEDS TRUSTS Future planning for your loved one with a disability NOVEMBER 5, 2015 Presenter Cheryl Carlyon, MBA Marketing and Outreach Manager Commonwealth Community Trust National nonprofit

More information

Plan Disclosure Booklet

Plan Disclosure Booklet Plan Disclosure Booklet Administration and Trustee: The Oregon 529 Savings Board October 26, 2017 Amounts invested under the Oregon ABLE Savings Plan are not guaranteed or insured by the State of Oregon,

More information

Texas ABLE Program Disclosure Statement and Participation Agreement. As of April 26, 2018

Texas ABLE Program Disclosure Statement and Participation Agreement. As of April 26, 2018 Texas ABLE Program Disclosure Statement and Participation Agreement SM As of April 26, 2018 This page has been intentionally left blank. PROGRAM DISCLOSURE STATEMENT Before you open an Account in the Texas

More information

Program overview October 2011

Program overview October 2011 Program Overview October 2011 Table of Contents Program Overview Important Notices... 3 Summary of Key Features... 4 Account Owner... 5 Contributions... 5 No Guarantee... 5 Account Control... 6 Tax Treatment...

More information

PLANNING FOR YOUR FINANCIAL FUTURE:

PLANNING FOR YOUR FINANCIAL FUTURE: PLANNING FOR YOUR FINANCIAL FUTURE: How A Special Needs Trust, Master Pooled Trust, Miller Trust & ABLE Accounts Can Help! HALEY D. GREER Chief Master Pooled Trust Officer What we will talk about today

More information

EDUCATIONAL SAVINGS OPTIONS COMPARISON

EDUCATIONAL SAVINGS OPTIONS COMPARISON EDUCATIONAL SAVINGS OPTIONS COMPARISON January 17, 2013 SCHOLARSHARE COVERDELL ESA ROTH IRA TRADITIONAL IRA SAVINGS BONDS GIFTS TO CHILDREN SUMMARY OF THE OPTION ScholarShare is a college savings program

More information

Special Needs Financial Planning ABLE Accounts

Special Needs Financial Planning ABLE Accounts Special Needs Financial Planning ABLE Accounts What can ABLE Accomplish? Copyright The Arc Wisconsin, Kathleen Oberneder & Barbara S. Hughes March 2018 Securities and Advisory Services offered through

More information

SPECIAL NEEDS TRUST GUIDELINES

SPECIAL NEEDS TRUST GUIDELINES SPECIAL NEEDS TRUST GUIDELINES The essential purpose of a Special Needs Trust is to improve the quality of an individual s life without disqualifying them from eligibility to receive public benefits. The

More information

Estate Planning. Insight on. Protecting your assets without a prenup. The ABLE account: A good alternative to a special needs trust?

Estate Planning. Insight on. Protecting your assets without a prenup. The ABLE account: A good alternative to a special needs trust? Insight on Estate Planning August/September 2015 Premarital planning Protecting your assets without a prenup The ABLE account: A good alternative to a special needs trust? Make net gifts to reduce your

More information

Special Needs Trusts and ABLE Accounts

Special Needs Trusts and ABLE Accounts Special Needs Trusts and ABLE Accounts Travis Finchum Special Needs Lawyers, P.A. Travis@SpecialNeedsLawyers.com SpecialNeedsLawyers.com GuardianTrusts.org Special Needs Trusts To benefit individuals with

More information

COVERDELL ESA CUSTODIAL ACCOUNT

COVERDELL ESA CUSTODIAL ACCOUNT COVERDELL ESA CUSTODIAL ACCOUNT Form 5305-EA Under Section 530 of the Internal Revenue Code FORM (REV. MARCH 2002) The Depositor whose name appears on the Application is establishing a Coverdell Education

More information

SPECIAL NEEDS TRUSTS

SPECIAL NEEDS TRUSTS SPECIAL NEEDS TRUSTS Special Needs Trust (SNT): type of trust designed to protect a beneficiary who is disabled, enabling them to receive governmental benefits: Supplemental Security Income-automatically

More information

Coverdell Education Savings Account

Coverdell Education Savings Account Coverdell Education Savings Account TABLE OF CONTENTS PART I COVERDELL ACCOUNT APPLICATION INSTRUCTIONS...3 PART II - DISCLOSURE STATEMENT...4 PART III - COVERDELL EDUCATION SAVINGS ACCOUNT CUSTODIAL AGREEMENT...

More information

Understanding the Impact of Work, Earnings, and IDAs On Social Security Disability Benefits. June 2008 Updated February 2011

Understanding the Impact of Work, Earnings, and IDAs On Social Security Disability Benefits. June 2008 Updated February 2011 A FI Understanding the Impact of Work, Earnings, and IDAs On Social Security Disability Benefits June 2008 Updated February 2011 Overview of the Social Security Disability Benefit Programs While the Title

More information

The State Farm College Savings Plan. Supplement dated June 30, 2017 to Enrollment Handbook and Participation Agreement dated April 22, 2016

The State Farm College Savings Plan. Supplement dated June 30, 2017 to Enrollment Handbook and Participation Agreement dated April 22, 2016 The State Farm College Savings Plan Supplement dated June 30, 2017 to Enrollment Handbook and Participation Agreement dated April 22, 2016 This Supplement amends the Enrollment Handbook and Participation

More information

Planning for a Family Member s Future: the Special Needs Trust

Planning for a Family Member s Future: the Special Needs Trust SPEAKER NOTES Planning for a Family Member s Future: the Special Needs Trust Summarized by Thomas T. Thomas How can we plan for our mentally disabled son or daughter s future after we have gone? One answer

More information

Tax Advantaged Education Savings Options

Tax Advantaged Education Savings Options Tax Advantaged Education Savings Options Overview Saving for college education can be an intimidating undertaking for many parents who may be inexperienced with tax laws, and unsure how to balance their

More information

The Arc of Texas Master Pooled Trust and the ABLE Act

The Arc of Texas Master Pooled Trust and the ABLE Act The Arc of Texas Master Pooled Trust and the ABLE Act How To Save Money and Protect Benefits Haley D. Greer, J.D. Chief Master Pooled Trust Officer What we will talk about today 1. What are the Future

More information

Mississippi Affordable College Savings (MACS) Program

Mississippi Affordable College Savings (MACS) Program PROGRAM DISCLOSURE BOOKLET AND PARTICIPATION AGREEMENTS Mississippi Affordable College Savings (MACS) Program IMPLEMENTED BY: BOARD OF DIRECTORS OF THE COLLEGE SAVINGS PLANS OF MISSISSIPPI PROGRAM MANAGER:

More information

COLLEGE WILL NOT BE EASY, BUT SAVING FOR IT CAN BE.

COLLEGE WILL NOT BE EASY, BUT SAVING FOR IT CAN BE. COLLEGE WILL NOT BE EASY, BUT SAVING FOR IT CAN BE. Why save for college.............. 2 Power of compounding........... 3 Plan highlights..................... 4 Broad investment options........ 6 Other

More information

The Schwab 529 College Savings Plan. Rely on Schwab s expertise to help you plan for a child s college education.

The Schwab 529 College Savings Plan. Rely on Schwab s expertise to help you plan for a child s college education. The Schwab 529 College Savings Plan Rely on Schwab s expertise to help you plan for a child s college education. Saving for college: A 529 plan is essential Tuition, fees, books, room and board. It all

More information

Trust Planning for Individuals with Disabilities or on Public Benefits

Trust Planning for Individuals with Disabilities or on Public Benefits Trust Planning for Individuals with Disabilities or on Public Benefits Estate Planning Council, SE Denver, November 10, 2015 Presented by: Megan Brand Executive Director CFPD- Colorado Fund for People

More information

Chapter New Law

Chapter New Law Chapter 1 2015 New Law The Surface 1-11 Transportation and Veterans Health Care Choice Improvement Act of 2015 (7/31/15) 1-11 Modified Return Filing Dates and Extension Dates For 2016 Returns 1-13 Due

More information

Utilizing Special Needs Trust for the Family Law Practitioner

Utilizing Special Needs Trust for the Family Law Practitioner Utilizing Special Needs Trust for the Family Law Practitioner www.gspt.org.familylaw.htm For More Materials on this Subject I will post this video (assuming the equipment works) and related materials on

More information

Tax Advantaged Education Savings Options

Tax Advantaged Education Savings Options Tax Advantaged Education Savings Options Overview Saving for college education can be an intimidating undertaking for many parents who may be inexperienced with tax laws, and unsure how to balance their

More information

ABLE United Deeper Dive into ABLE Accounts. John Finch Director ABLE United Florida Prepaid College Board

ABLE United Deeper Dive into ABLE Accounts. John Finch Director ABLE United Florida Prepaid College Board ABLE United Deeper Dive into ABLE Accounts John Finch Director ABLE United Florida Prepaid College Board Objectives Achieving a Better Life Experience. Overview of ABLE Act ABLE United Specifics Distinctions

More information

State of Rhode Island and Providence Plantations Rhode Island Department of Revenue Division of Taxation. Public Notice of Proposed Rulemaking

State of Rhode Island and Providence Plantations Rhode Island Department of Revenue Division of Taxation. Public Notice of Proposed Rulemaking State of Rhode Island and Providence Plantations Rhode Island Department of Revenue Division of Taxation Public Notice of Proposed Rulemaking Pursuant to the provisions of R.I. Gen. Laws 42-35-2.7, and

More information

Funding the Future: The ABLE Act and Special Needs Planning P R E S E N T E D B Y

Funding the Future: The ABLE Act and Special Needs Planning P R E S E N T E D B Y Funding the Future: The ABLE Act and Special Needs Planning P R E S E N T E D B Y SUPPLEMENTAL SECURITY INCOME SSI Resource Rules Countable resource limit: $2,000 single, $3,000 couple Exempt resources:

More information

Program Disclosure Booklet. Administration and Trustee: The Maryland 529 Board

Program Disclosure Booklet. Administration and Trustee: The Maryland 529 Board Program Disclosure Booklet Administration and Trustee: The Maryland 529 Board November 27, 2017 Investing in the Maryland ABLE program is an important decision. Please read the Program Disclosure Booklet

More information

COLLEGE SAVINGS PLAN (MONTANA)

COLLEGE SAVINGS PLAN (MONTANA) COLLEGE SAVINGS PLAN (MONTANA) PLAN DESCRIPTION HANDBOOK The Pacific Life Funds 529 Plan (MT) was created under the Montana Family Education Savings Program (Program).To implement the Program, the state

More information

STATE AND FEDERAL TAX BENEFITS FOR COLLEGE EXPENSES: THE CASE OF UTAH

STATE AND FEDERAL TAX BENEFITS FOR COLLEGE EXPENSES: THE CASE OF UTAH STATE AND FEDERAL TAX BENEFITS FOR COLLEGE EXPENSES: THE CASE OF UTAH Smith, Sheldon R. Utah Valley University ABSTRACT Several different federal income tax benefits exist for higher education costs. The

More information

Tax Benefits for Higher Education

Tax Benefits for Higher Education Department of the Treasury Internal Revenue Service Publication 970 (Rev. December 1998) Cat. No. 25221V Tax Benefits for Higher Education Contents Introduction... 1 Education Tax Credits... 2 Rules That

More information

ESTATE PLANNING FOR PARENTS OF DISABLED CHILDREN

ESTATE PLANNING FOR PARENTS OF DISABLED CHILDREN ESTATE PLANNING FOR PARENTS OF DISABLED CHILDREN Fendrick & Morgan, LLC 1307 White Horse Rd., Bldg B, Ste 200 Voorhees, NJ 08043 (856) 489-8388 www.fendrickmorganlaw.com Estate planning and lifetime financial

More information

Information About Child Care Expenses

Information About Child Care Expenses Canada Revenue Agency Agence du revenu du Canada T778 E (11) Information About Child Care Expenses NOTE: In this form, the text inserted between square brackets represents the regular print information.

More information

FINANCING LONG TERM CARE: PROTECTING THE HOME

FINANCING LONG TERM CARE: PROTECTING THE HOME FINANCING LONG TERM CARE: PROTECTING THE HOME Prepared by Emily S. Starr The Law Office of Ciota, Starr & Vander Linden LLP 625 Main Street Seven State Street Fitchburg, MA 01420 Worcester, MA 01609 (978)

More information

Pooled Special Needs Trust Planning What Families Need to Know

Pooled Special Needs Trust Planning What Families Need to Know Pooled Special Needs Trust Planning What Families Need to Know Presented by: Joanne Marcus, MSW Executive Director Commonwealth Community Trust www.trustcct.org 2 About Commonwealth Community Trust (CCT)

More information

SUPPLEMENT NO. 1 DATED DECEMBER 31, 2016 TO THE SCHOLARSHARE COLLEGE SAVINGS PLAN PLAN DISCLOSURE BOOKLET DATED JULY 5, 2016

SUPPLEMENT NO. 1 DATED DECEMBER 31, 2016 TO THE SCHOLARSHARE COLLEGE SAVINGS PLAN PLAN DISCLOSURE BOOKLET DATED JULY 5, 2016 00188200 SUPPLEMENT NO. 1 DATED DECEMBER 31, 2016 TO THE SCHOLARSHARE COLLEGE SAVINGS PLAN PLAN DISCLOSURE BOOKLET DATED JULY 5, 2016 This Supplement No. 1 provides new and additional information beyond

More information

HOPKINS & CARLEY GUIDE TO BASIC ESTATE PLANNING TECHNIQUES FOR 2017

HOPKINS & CARLEY GUIDE TO BASIC ESTATE PLANNING TECHNIQUES FOR 2017 HOPKINS & CARLEY GUIDE TO BASIC ESTATE PLANNING TECHNIQUES FOR 2017 PART I: REVOCABLE TRUST vs. WILL A. Introduction In general, an estate plan can be implemented either by the use of wills or by the use

More information

Third-Party Special Needs Trusts: Asset Protection Benefits and Tax Burdens

Third-Party Special Needs Trusts: Asset Protection Benefits and Tax Burdens Third-Party Special Needs Trusts: Asset Protection Benefits and Tax Burdens Presented by I. Richard Gershon University of Mississippi School of Law I. What is a Third-Party Special Needs Trust? A. Difference

More information

Coverdell ESA Custodial Account

Coverdell ESA Custodial Account Coverdell ESA Custodial Account Form 5305-EA Under Section 530 of the Internal Revenue Code FORM (REV. MARCH 2002) The Depositor whose name appears on the Application is establishing a Coverdell Education

More information

The Schwab 529 Education Savings Plan. Rely on Schwab s expertise to help you plan for future education expenses.

The Schwab 529 Education Savings Plan. Rely on Schwab s expertise to help you plan for future education expenses. The Schwab 529 Education Savings Plan Rely on Schwab s expertise to help you plan for future education expenses. Saving for college or other education expenses: A 529 plan is essential Tuition, fees, books,

More information

Bound for College. kysaves.com Enrollment Materials. With help from the Kentucky Education Savings Plan Trust

Bound for College. kysaves.com Enrollment Materials. With help from the Kentucky Education Savings Plan Trust Bound for College With help from the Kentucky Education Savings Plan Trust kysaves.com 1-877-598-7878 Enrollment Materials A Future Full of Potential Table of Contents Why save for college?... 1 How it

More information

A partner you can trust.

A partner you can trust. EDUCATION SAVINGS MY EDUCATION Who can help them discover the world? A partner you can trust. www.inalco.com Advantages of a My Education RESP: Lets you accumulate the funds necessary to finance a child

More information

To all your abilities, now add the ability to save.

To all your abilities, now add the ability to save. To all your abilities, now add the ability to save. To all of your abilities, now add the ability to save. The Achieving a Better Life Experience Act (ABLE) of 2014 allows individuals with disabilities

More information

together The goals of your children. The guidance of your Advisor. The benefits of a NEST 529 Advisor Plan.

together The goals of your children. The guidance of your Advisor. The benefits of a NEST 529 Advisor Plan. together The goals of your children. The guidance of your Advisor. The benefits of a NEST 529 Advisor Plan. Think of all you invest in a child. Time. Care. Love. And now... an education. As far away as

More information

EDUCATION IRA/COVERDELL EDUCATION ACCOUNT APPLICATION AND DISCLOSURE STATEMENT Account Number (if known)

EDUCATION IRA/COVERDELL EDUCATION ACCOUNT APPLICATION AND DISCLOSURE STATEMENT Account Number (if known) EDUCATION IRA/COVERDELL EDUCATION ACCOUNT APPLICATION AND DISCLOSURE STATEMENT Account Number (if known) Registered Representative Return your completed application to: William Blair Funds, P.O. Box 8506

More information

05/07/13 INTRODUCTION TO SUPPLEMENTAL NEEDS TRUSTS

05/07/13 INTRODUCTION TO SUPPLEMENTAL NEEDS TRUSTS 05/07/13 INTRODUCTION TO SUPPLEMENTAL NEEDS TRUSTS What is a Trust? Under a trust, a person (the grantor ) gives title to property to another person (the trustee ), to manage and use the property for the

More information

SUPPLEMENT DATED APRIL 2018 TO THE COLLEGE SAVINGS IOWA 529 PLAN PROGRAM DESCRIPTION AND PRIVACY POLICIES DATED MAY 2017

SUPPLEMENT DATED APRIL 2018 TO THE COLLEGE SAVINGS IOWA 529 PLAN PROGRAM DESCRIPTION AND PRIVACY POLICIES DATED MAY 2017 SUPPLEMENT DATED APRIL 2018 TO THE COLLEGE SAVINGS IOWA 529 PLAN PROGRAM DESCRIPTION AND PRIVACY POLICIES DATED MAY 2017 The following information describes important changes and is supplemental to the

More information

ARTICLE I ARTICLE II ARTICLE III ARTICLE IV ARTICLE V

ARTICLE I ARTICLE II ARTICLE III ARTICLE IV ARTICLE V Coverdell Education Savings Custodial Account (Under section 530 of the Internal Revenue Code) Form 5305-EA (Rev. October 2010) Department of the Treasury, Internal Revenue Service. Do not file with the

More information

Coverdell IRA Plan Agreement & Disclosure

Coverdell IRA Plan Agreement & Disclosure Coverdell IRA Plan Agreement & Disclosure PLEASE READ AND RETAIN THE FOLLOWING DOCUMENT FOR YOUR RECORDS COVERDELL ESA CUSTODIAL ACCOUNT AGREEMENT Form 5305-EA under section 530 of the Internal Revenue

More information

USING A SPECIAL NEEDS TRUST FOR CHARITABLE GIVING

USING A SPECIAL NEEDS TRUST FOR CHARITABLE GIVING I. BACKGROUND The Special Needs Trust or Supplemental Needs Trust ( SNT ) is a form of discretionary spendthrift trust designed to protect a disabled beneficiary s government benefits while providing a

More information

Traps to Avoid in Lifetime Giving Program

Traps to Avoid in Lifetime Giving Program October 2012 Background There are many ways to transfer property during an individual s lifetime in a manner designed to avoid or minimize federal estate and gift tax. However, many of these opportunities

More information

Provided by Beck Estate Planning & Elder Law, LLC. Medicaid Benefits

Provided by Beck Estate Planning & Elder Law, LLC. Medicaid Benefits Provided by Beck Estate Planning & Elder Law, LLC Medicaid Benefits Both the federal and state governments fund Medicaid the medical services assistance program for low-income individuals. In Missouri,

More information

Janus Coverdell Education Savings Account. Disclosure Statement & Custodial Agreement

Janus Coverdell Education Savings Account. Disclosure Statement & Custodial Agreement Janus Coverdell Education Savings Account Disclosure Statement & Custodial Agreement Janus Coverdell Education Savings Account Disclosure Statement Special Note State Street Bank and Trust Company serves

More information

THE ARC OF TEXAS MASTER POOLED TRUST AND THE ABLE ACT: HOW TO SAVE MONEY WITHOUT SACRIFICING SSI

THE ARC OF TEXAS MASTER POOLED TRUST AND THE ABLE ACT: HOW TO SAVE MONEY WITHOUT SACRIFICING SSI THE ARC OF TEXAS MASTER POOLED TRUST AND THE ABLE ACT: HOW TO SAVE MONEY WITHOUT SACRIFICING SSI Haley D. Greer, J.D.- Chief Master Pooled Trust Officer Kyle Piccola- Chief Government and Community Affairs

More information

The Achieving a Better Life Experience (ABLE) Act

The Achieving a Better Life Experience (ABLE) Act The Achieving a Better Life Experience (ABLE) Act is a new law that lets a person with a disability and that person s family put money into a special tax-advantaged account. The ABLE Act will allow people

More information

AMG FUNDS COVERDELL EDUCATION SAVINGS ACCOUNT

AMG FUNDS COVERDELL EDUCATION SAVINGS ACCOUNT AMG FUNDS COVERDELL EDUCATION SAVINGS ACCOUNT TABLE OF CONTENTS COVERDELL ACCOUNT APPLICATION INSTRUCTIONS 3 DISCLOSURE STATEMENT 4 COVERDELL EDUCATION SAVINGS ACCOUNT CUSTODIAL AGREEMENT 11 APPLICATION

More information

I. The following is added to the end of the inside cover of the Investor Handbook:

I. The following is added to the end of the inside cover of the Investor Handbook: SUPPLEMENT DATED FEBRUARY 15, 2018 TO THE FRANKLIN TEMPLETON 529 COLLEGE SAVINGS PLAN INVESTOR HANDBOOK DATED DECEMBER 31, 2016 AS PREVIOUSLY SUPPLEMENTED ON DECEMBER 31, 2017, JUNE 30, 2017, APRIL 1,

More information

Disclosure Statement and Custodial Agreement

Disclosure Statement and Custodial Agreement Disclosure Statement and Custodial Agreement Coverdell Education Savings Account CL-BKT-75021 CESA Custodial Agreement v3_corr.indd 1 CL-BKT-75021 CESA Custodial Agreement v3_corr.indd 2 Table of Contents

More information

Supplemental Security Income (SSI) and Work

Supplemental Security Income (SSI) and Work Supplemental Security Income (SSI) and Work Work Incentives Planning and Assistance National Training and Data Center This presentation produced at U.S. taxpayer expense. Our Objectives By the end of this

More information

Taxpayer Relief Act of 1997: Provisions Affecting Retirement Planning and Employee Benefits

Taxpayer Relief Act of 1997: Provisions Affecting Retirement Planning and Employee Benefits College of William & Mary Law School William & Mary Law School Scholarship Repository William & Mary Annual Tax Conference Conferences, Events, and Lectures 1997 Taxpayer Relief Act of 1997: Provisions

More information

Jurisdictional Issues

Jurisdictional Issues Jurisdictional Issues Trusts are generally subject to the jurisdiction where the grantor is domiciled at the time the trust is created. Other states that may have jurisdiction over the trust include: Where

More information

CollegeWealth Program Description & Account Agreement

CollegeWealth Program Description & Account Agreement CollegeWealth Program Description & Account Agreement As of January 1, 2016 2016 Virginia College Savings Plan All Rights Reserved 1 Customers should obtain all enrollment materials, including this Program

More information

SUPPLEMENT NO. 3 DATED OCTOBER 4, 2016, TO THE KENTUCKY EDUCATIONAL SAVINGS PLAN TRUST DISCLOSURE BOOKLET DATED APRIL 30, 2013

SUPPLEMENT NO. 3 DATED OCTOBER 4, 2016, TO THE KENTUCKY EDUCATIONAL SAVINGS PLAN TRUST DISCLOSURE BOOKLET DATED APRIL 30, 2013 00179495 SUPPLEMENT NO. 3 DATED OCTOBER 4, 2016, TO THE KENTUCKY EDUCATIONAL SAVINGS PLAN TRUST DISCLOSURE BOOKLET DATED APRIL 30, 2013 This Supplement No. 3 provides new and additional information beyond

More information

FUTURE PLANNING, GUARDIANSHIP AND TRUSTS

FUTURE PLANNING, GUARDIANSHIP AND TRUSTS KEEP IN MIND: AGE 18 FUTURE PLANNING, GUARDIANSHIP AND TRUSTS Darcy J. Chamberlin Chamberlin Law Group 1200 Harger Road, Suite 209 Oak Brook, IL 60523-1816 630-571-0222 www.clgattorney.com Legal Decision-Making

More information

SUPPLEMENT DATED JANUARY 2018 TO THE NEW YORK ABLE SAVINGS PROGRAM DISCLOSURE BOOKLET AND PARTICIPATION AGREEMENT DATED AUGUST 2017

SUPPLEMENT DATED JANUARY 2018 TO THE NEW YORK ABLE SAVINGS PROGRAM DISCLOSURE BOOKLET AND PARTICIPATION AGREEMENT DATED AUGUST 2017 SUPPLEMENT DATED JANUARY 2018 TO THE NEW YORK ABLE SAVINGS PROGRAM DISCLOSURE BOOKLET AND PARTICIPATION AGREEMENT DATED AUGUST 2017 This Supplement describes important changes and amends the Disclosure

More information

MFS Investment Management MFS 529 SAVINGS PLAN

MFS Investment Management MFS 529 SAVINGS PLAN MFS Investment Management MFS 529 SAVINGS PLAN Participant Agreement and Disclosure Statement NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE MFS 529 SAVINGS PLAN January 8, 2015 Questions and Answers...

More information

SUMMARY PLAN DESCRIPTION. for the CRETE CARRIER CORPORATION FLEXIBLE BENEFITS PLAN, DEPENDENT CARE ASSISTANCE PLAN & FLEXIBLE SPENDING ACCOUNT PLAN

SUMMARY PLAN DESCRIPTION. for the CRETE CARRIER CORPORATION FLEXIBLE BENEFITS PLAN, DEPENDENT CARE ASSISTANCE PLAN & FLEXIBLE SPENDING ACCOUNT PLAN SUMMARY PLAN DESCRIPTION for the CRETE CARRIER CORPORATION FLEXIBLE BENEFITS PLAN, DEPENDENT CARE ASSISTANCE PLAN & FLEXIBLE SPENDING ACCOUNT PLAN SUMMARY PLAN DESCRIPTION Introduction Crete Carrier Corporation

More information

The Arc of Texas Master Pooled Trust and the ABLE Act

The Arc of Texas Master Pooled Trust and the ABLE Act The Arc of Texas Master Pooled Trust and the ABLE Act How To Save Money and Protect Benefits Haley D. Greer, J.D. Chief Master Pooled Trust Officer What we will talk about today 1. What are the Tools in

More information

Planning for Special Needs and Ohio s STABLE Account. Presented by Logan Philipps, Esq.

Planning for Special Needs and Ohio s STABLE Account. Presented by Logan Philipps, Esq. Planning for Special Needs and Ohio s STABLE Account Presented by Logan Philipps, Esq. Concerns for Families Everything will be fine as long as my child dies before I do. Will my typical child have to

More information

Please file this Supplement to the Enable Savings Plan Program Disclosure Statement with your records

Please file this Supplement to the Enable Savings Plan Program Disclosure Statement with your records Please file this Supplement to the Enable Savings Plan Program Disclosure Statement with your records ENABLE SAVINGS PLAN PROGRAM DISCLOSURE STATEMENT DATED AUGUST 27, 2017 SUPPLEMENT NUMBER ONE This Supplement

More information

Updates on ABLE Accounts & Special Needs Trusts

Updates on ABLE Accounts & Special Needs Trusts Updates on ABLE Accounts & Special Needs Trusts Mary E. O Byrne, MBA JD Baltimore County Bar Association O Byrne Law, LLC Estates & Trusts Section 1400 Front Avenue, Suite 303 February 28, 2018 Lutherville,

More information

EDUCATION SAVINGS DIPLOMA. Who can help you design. their future? A partner you can trust.

EDUCATION SAVINGS DIPLOMA. Who can help you design. their future? A partner you can trust. EDUCATION SAVINGS DIPLOMA Who can help you design their future? A partner you can trust. www.inalco.com Advantages of a Diploma RESP: Accumulate the necessary funds to finance a child s post-secondary

More information

Form 1041 Compliance for Special Needs Trusts: First-Party vs. Third-Party, Qualified Disability Trusts

Form 1041 Compliance for Special Needs Trusts: First-Party vs. Third-Party, Qualified Disability Trusts Form 1041 Compliance for Special Needs Trusts: First-Party vs. Third-Party, Qualified Disability Trusts FOR LIVE PROGRAM ONLY TUESDAY, NOVEMBER 13, 2018, 1:00-2:50 pm Eastern IMPORTANT INFORMATION FOR

More information

COVERDELL EDUCATION SAVINGS ACCOUNT CUSTODIAL AGREEMENT & DISCLOSURE STATEMENT

COVERDELL EDUCATION SAVINGS ACCOUNT CUSTODIAL AGREEMENT & DISCLOSURE STATEMENT COVERDELL EDUCATION SAVINGS ACCOUNT CUSTODIAL AGREEMENT & DISCLOSURE STATEMENT Coverdell Education Savings Custodial Account (Under section 530 of the Internal Revenue Code) Form 5305-EA (Rev. March 2002)

More information

ROTH IRA DISCLOSURE STATMENT

ROTH IRA DISCLOSURE STATMENT ROTH IRA DISCLOSURE STATMENT The Roth Individual Retirement Account ( Roth IRA ) presented with this Disclosure Statement is a retirement plan made available to individuals. An individual who establishes

More information

Coverdell Education Savings Account (CESA or ESA) Distributions used to pay for qualified education expenses. Custodial Accounts (UGMA/UTMA)

Coverdell Education Savings Account (CESA or ESA) Distributions used to pay for qualified education expenses. Custodial Accounts (UGMA/UTMA) There are many choices for you to consider when charting your child's course to college. The option you choose depends on how many years you have to save, your overall financial goals and your investment

More information

JOINDER AGREEMENT FOR ARC-MN POOLED TRUST FOR A BENEFICIARY S ASSETS

JOINDER AGREEMENT FOR ARC-MN POOLED TRUST FOR A BENEFICIARY S ASSETS JOINDER AGREEMENT FOR ARC-MN POOLED TRUST FOR A BENEFICIARY S ASSETS This Joinder Agreement ( Agreement ) is by and between The Arc Minnesota ( Trustee ) and ( Grantor ) for the benefit of ( Beneficiary

More information

Table of Content. 1. GENERAL Coverdell Education Savings Custodial Account Master Terms Definitions... 1

Table of Content. 1. GENERAL Coverdell Education Savings Custodial Account Master Terms Definitions... 1 1 Table of Content 1. GENERAL.... 1 1.1 Coverdell Education Savings Custodial Account Master Terms... 1 1.2 Definitions... 1 2. ESA ESTABLISHMENT AND ELIGIBILITY... 2 2.1 Establishing an ESA... 2 2.2 Revoking

More information

QUESTIONS AND ANSWERS ON THE COPES PROGRAM

QUESTIONS AND ANSWERS ON THE COPES PROGRAM QUESTIONS AND ANSWERS ON THE COPES PROGRAM COLUMBIA LEGAL SERVICES JANUARY 2008 THIS PAMPHLET IS ACCURATE AS OF ITS DATE OF REVISION. THE RULES CHANGE FREQUENTLY. 1. What is COPES? COPES is a program that

More information