California Estate Planning: Special Needs Trusts for Autistic Children and Others

9:05 am Uncategorized

Many times the parents and caregivers of children and other dependents with special needs are so busy that planning for the future doesn’t even seem like a realistic possibility.

If you are the caregiver of a child with autism or any other dependent in need of special care, it may be time to discuss a special needs trust with your California estate planning attorney.

A special needs trust set up by a California estate planner allows you to put liquid assets and other property away that could be worth more later and can help to pay for the cost of care in the event that the main caregiver passes away first. It’s an open trust that allows for any member of the family (or even friends) to donate to the future of the special needs child.

Karen Greenberg of Parenting the Special Needs Child notes, “Funds placed in a special needs trust are not counted as your child’s assets, and will not jeopardize these needs based entitlements.” Greenberg adds, “If the special needs trust is properly drafted, it will be considered a ‘qualified disability trust’ which has a very generous standard deduction (equivalent to a personal exemption) currently $3500 under current treasury regulations. This means that the first $3500 of investment income generated by a special needs trust will be offset and therefore not taxable. The same investment income on your tax return may be taxed at your tax rate (currently 25-28% for most tax payers).”

Newport Beach asset management attorneys can help you set up a special needs trust in California. This could be a great fit for you and your family. Investing in your future and the future of your special needs child and also saving on taxes can only be a good thing!

Contact us today for individualized planning strategies to meet your unique needs.

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