To Your Better Future

If you are a parent or guardian of a person with disabilities, you must have wondered why not leave wealth or resources for your child or relative with special needs outright? If a person with a disability who is receiving or who anticipates receiving government benefits (Social Security Income, Medicaid, Food Stamps, etc.) inherits a significant amount of wealth outright, it can negatively impact their eligibility for government benefits. They will first have to exhaust such an amount or legacy in order to receive any government benefits. Example- John, a person with down syndrome works at a grocery store and makes about $500/month. John receives SSI and Medicaid benefits. John’s grandmother Martha died and left him a savings account with $200,000. John is automatically disqualified for SSI and Medicaid. In order to qualify for SSI and Medicaid, John will first have to spend-down to the extend that he keeps no more than $2,000. How can a Special Needs Trust (SNT) help? A special needs...

 Hey there, welcome to my explanation about Federal Estate and Gift Taxes in the United States. I'll break it down in a way that's easy to understand. Federal Estate Tax Overview: The federal estate tax in the United States is a tax imposed on the transfer of a person's estate upon their "death". This tax is imposed on the total value of an individual's assets and property at the time of their death. It's important to note that not everyone is subject to the federal estate tax; Effective January 1, 2023, the federal gift/estate tax exemption and GST tax exemption is $12,920,000. This means if your gross estate is less than $12.92 million, you don't have to worry about Federal Estate Taxes in the United States. You may still have to worry and plan about the State Estate Taxes, but let's just focus on federal estate taxes today. The lifetime "gift tax" exemption and the federal estate tax exemption are interconnected . People will be easily...