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Category: Special Needs Trust

Explaining Special Needs Trust and Inheritance Tax

Posted on Tue Oct 27, 2015, on Special Needs Trust

From our “Ask a Question” mailbag: I want to form a Special Needs Trust for my daughter in my will, to be funded at my death. Will the money I put into the Special Needs Trust be subject to the Pennsylvania Inheritance Tax?

The Pennsylvania Inheritance Tax rate for transfers to children is 4.5%. This tax is payable whether you give the child money outright or if you place the money in a trust. A Special Needs Trust is an Irrevocable Trust that has the added language allowing the money to be available for a Special Needs Person’s care, but still allows that person to qualify for Medicaid.

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Who gets the remainder of my son’s Special Needs Trust?

Posted on Thu Oct 22, 2015, on Special Needs Trust

From our “Ask a Question” mailbag: I am planning to set up a Special Needs Trust for my son and place a gift in the trust each year to help provide care for my son after my death. If he dies without the entire amount being used, whom can I name as the beneficiary?

If I have the facts correct, you are thinking about forming an Irrevocable Trust for your son during your lifetime (“inter vivos”) and then placing money into the trust every year to create a pool of funds to provide care for your son after your death. I also assume, in order to provide the maximum tax benefits, you will use Crummey Powers to make these transfers free of Federal Estate Tax, and you will not serve as trustee.

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Special Needs Trusts in Philadelphia, Pennsylvania – What You Need To Know

Posted on Tue Jul 7, 2015, on Special Needs Trust

From our “Ask a Question” mailbag: My son is a special needs child in Philadelphia on Medicaid, and I want to leave money at my death for his care. I have heard that Special Needs Trusts are becoming more liberal, is that true?

Special Needs Trusts have been available for many years, allowing parents to leave money for a child’s care that “supplements” but does not “supplant” what government programs provide. In this way, your child can qualify for Medicaid but the trustee can use the money you set aside for your son to provide him with the extra things that the government program does not provide.

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Callista O “Callista O” Chukwunenye

I knew I needed to update my Estate Planning documents created 15 years ago, yet I kept putting it off. Peter, in his no pressure way nudged me to finally check it off my list. The admin staff of Klenk law were very respectful and responsive in working with me to set up dates and times that work for me to talk with Peter over the phone regarding what I wanted to update. Peter answered my questions and explained some things to me. This helped me on some of my estate decision. After our phone talk, I received a draft of the updated documents, and was allowed ample time to review them prior to a final review with Peter over the phone. This pre-signing reviews made the in-person signing time very short. I would highly recommend Klenk Law, because Peter and his staff were professional but friendly, and thorough in the estate planning work they did for me. Thank you, Peter!

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Bernadette Cucinotti

It's our first time doing business with Klenk Law and it was absolutely very positive. All interactions were timely and very professional. Peter and all of his staff put us at ease when making our estate plans and answered any questions thoroughly. We would highly recommend.

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David Major

Had our will done with Peter and his team. Made the process super easy and understandable. His team lead by Laura Parisi were always available for questions and assistance. Professional and personable they made what can be a challenging experience hopeful and graceful. Cannot recommend their services enough!

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Chris Mogee

Peter and his team are great to work with. They make estate planning so easy and painless. They answered all of my questions clearly and helped me understand the best way to handle complicated finances and things like real estate investments. Thank you Klenk Law!!

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Randi Greenberg

Jackie is amazing! I have asked her many questions and she answers them professionally and honestly. She is very informative !!!

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