Great video Ellen 2 thumbs up Always !!! Can you explain the penalty that states are starting to impose on people 65 and older on Medicaid who have a Special Needs Trust they are saying you can NOT add additional funds to the Third-party or D4C Special Needs Trust without disqualifying yourself from Medicaid. And if you had investment income or dividend stocks in the trust would those future dividend payments affect the Trust?
Thanks for your kind words! I haven’t heard of those types of penalties; that must be happening outside of California, and our firm just serves California residents. For how income generated inside a SNT is taxed, I suggest you watch this video: How Are Special Needs Trusts Taxed? th-cam.com/video/LeHR7l6U0Cw/w-d-xo.html
@@ellencookman-EstatePlanningSNT Thank you for your reply. The taxes are NOT the problem because the Trust only invests in muni-state bonds. We are concerned about how future investment income will affect Medicaid eligibility.
HUD Section 811 housing for those with disabilities that were once homeless does not have the $100,000 asset limit like Section 8 has staring in 2024. I have been in HUD Section 811 housing for 13 1/2 years. I inherited $325,000 from my older brother's estate who died in August 2020. I choice not to create a Special Needs trust for the inherited assets for the following reasons. I am working not receiving SSI or Medicaid living in Georgia. All trusts have higher tax rates than individual tax rates (being in 12% US Federal tax bracket qualified dividends are taxed at 0%) HUD counts distributions from all trusts as income; only my dividends and interest along with my earned income is counted in the 30% of income rent calculation. So I chose to have my inherited assets titled in my name.
Thank you for explaining. I am on SSI I am disabled but I found out that the trustee was going to invest my money without telling me. I'm also on HUD 811 and am worried I will lose it and don't trust these trustees at all . Besides it's a lot of money. I know I will lose my SSI that worries me as well . But mainly losing my HUD but not sure how it will go if I lose my SSI and not have an income how will I pay my 30% not sure if they would kick me out . Not sure if you would know? Maybe I could try and figure out a job from home or something. I'm in a wheelchair.
RIGHT ON, thanks for sharing.... as the info on this video wizzes by this to "sell" the SNT when in fact HUD housing does NOT count inheritances as assets and i have been living here 10 yrs to know that.... I too am looking into leaving the inheritance in my name... wish i could talk with you one on one more about this, as I am in the process of figuring out what to do now in preparation for when my father dies.
@@SisTarra7 so you are receiving an inheritance and your parents did not set up a SNT for you? I am in the same boat as SNT are way too much money and strangers for trustees does NOT WORK!
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I was going to meet with you and my parents, nut why arent you suggesting for those who get 1M or more just to get a secondary insurance and keep the inheritance if only on ssdi and medi-cal... to let go of medi-cal and get a 2nd insurance?
It really depends on the specific situation, whether someone might want to keep their Medi-Cal coverage or not. I look forward to discussing this with you and your parents!
Yes, that should be fine. And FYI, under SSI rules, a beneficiary can own 1 car and that’s considered an exempt asset (i.e. doesn’t count towards the asset limit for SSI).
I wonder why my USDA RD housing which i thought had same rules as HUD, yet my housing managern says inheritances do NOT count??
These laws are gradually being implemented; I’m not sure where your housing authority is in the process.
Great video Ellen 2 thumbs up Always !!! Can you explain the penalty that states are starting to impose on people 65 and older on Medicaid who have a Special Needs Trust they are saying you can NOT add additional funds to the Third-party or D4C Special Needs Trust without disqualifying yourself from Medicaid. And if you had investment income or dividend stocks in the trust would those future dividend payments affect the Trust?
Thanks for your kind words! I haven’t heard of those types of penalties; that must be happening outside of California, and our firm just serves California residents. For how income generated inside a SNT is taxed, I suggest you watch this video: How Are Special Needs Trusts Taxed? th-cam.com/video/LeHR7l6U0Cw/w-d-xo.html
@@ellencookman-EstatePlanningSNT Thank you for your reply. The taxes are NOT the problem because the Trust only invests in muni-state bonds. We are concerned about how future investment income will affect Medicaid eligibility.
HUD Section 811 housing for those with disabilities that were once homeless does not have the $100,000 asset limit like Section 8 has staring in 2024. I have been in HUD Section 811 housing for 13 1/2 years. I inherited $325,000 from my older brother's estate who died in August 2020. I choice not to create a Special Needs trust for the inherited assets for the following reasons. I am working not receiving SSI or Medicaid living in Georgia. All trusts have higher tax rates than individual tax rates (being in 12% US Federal tax bracket qualified dividends are taxed at 0%) HUD counts distributions from all trusts as income; only my dividends and interest along with my earned income is counted in the 30% of income rent calculation. So I chose to have my inherited assets titled in my name.
@@martinguldnerAutisticSwanGuru why is it only at 30%?
@@nawluck United States Department of Housing and Urban Development determines no one should pay more than 30% for their housing and utilities.
Thank you for explaining. I am on SSI I am disabled but I found out that the trustee was going to invest my money without telling me. I'm also on HUD 811 and am worried I will lose it and don't trust these trustees at all . Besides it's a lot of money. I know I will lose my SSI that worries me as well . But mainly losing my HUD but not sure how it will go if I lose my SSI and not have an income how will I pay my 30% not sure if they would kick me out . Not sure if you would know? Maybe I could try and figure out a job from home or something. I'm in a wheelchair.
RIGHT ON, thanks for sharing.... as the info on this video wizzes by this to "sell" the SNT when in fact HUD housing does NOT count inheritances as assets and i have been living here 10 yrs to know that.... I too am looking into leaving the inheritance in my name... wish i could talk with you one on one more about this, as I am in the process of figuring out what to do now in preparation for when my father dies.
@@SisTarra7 so you are receiving an inheritance and your parents did not set up a SNT for you? I am in the same boat as SNT are way too much money and strangers for trustees does NOT WORK!
Subscribe to our Newsletter to stay up to date on all things Estate Planning and more! app.lawmatics.com/forms/share/3944a0fd-07f7-4c4a-8138-9e32e51367bc
I was going to meet with you and my parents, nut why arent you suggesting for those who get 1M or more just to get a secondary insurance and keep the inheritance if only on ssdi and medi-cal... to let go of medi-cal and get a 2nd insurance?
It really depends on the specific situation, whether someone might want to keep their Medi-Cal coverage or not. I look forward to discussing this with you and your parents!
If somebody manage beneficiary's money and buy beneficiary a car with that money, is it ok ? Under Beneficiarys name (DMV ownership report) ?
Yes, that should be fine. And FYI, under SSI rules, a beneficiary can own 1 car and that’s considered an exempt asset (i.e. doesn’t count towards the asset limit for SSI).
Say you get $20,000 cash ... Cant you just spend it down and reapply for medi cal right away?
Yes, you can typically spend down money that you receive within that same month, and it shouldn’t count against you for public benefits purposes