In this webinar, Teresa Ferruzzo, CPA, abip partner, discusses a crucial financial planning tool for families who care for a loved one with special needs: Special Needs Trusts (SNTs). A Special Needs Trust is an essential mechanism to ensure that a family member with disabilities can receive financial support without jeopardizing their eligibility for government benefits like Medicaid or Supplemental Security Income (SSI).

Key takeaways:

• Understand the difference between first-party and third-party SNTs—funding source, tax treatment, and Medicaid payback rules vary.
• Avoid costly mistakes by managing trust distributions properly to reduce taxes and preserve benefits.
• Form 1041 & Qualified Disability Trusts (QDTs) can dramatically affect tax strategy.
• ABLE Accounts are an essential companion to SNTs—especially for shelter and daily living expenses.
• Work with specialists—estate attorneys, CPAs, and planners experienced in special needs are essential to get it right.

Taxes on SNTs aren’t just a compliance issue—they’re a planning opportunity. If you support a loved one with disabilities, make sure your plan is optimized for both benefits and taxes.