In general a Supplemental Needs Trust (SNT), sometimes referred to as a Special Needs Trust or Safe Harbor Trust, is a mechanism to protect a person’s financial assets when one needs to apply for Medicaid and/or other types of aid that center on a person’s level of financial need. A SNT works similar to a… Continue Reading
Category Archives: Estate Planning
Save Taxes With a Trust
Many families have used trusts for decades to pass wealth to spouses, children and grandchildren with reduced or no estate or gift tax burden. However, today the top income tax bracket is 39.6% plus the new 3.8% surtax on investment income for high earners (total top federal income tax rate 43.4%). One such earner is… Continue Reading
The Good, The Bad and The Ugly: Washington’s 2014 Estate Tax
In “emergency” legislation passed last summer, Governor Inslee signed a bill that made some changes to Washington’s estate tax. Most of these changes became effective on January 1, 2014. Here are some of the more important changes: The Good – Washington’s $2 million dollar per person estate tax exemption is now indexed for inflation. This… Continue Reading
Long-Term Care Benefits for Veterans
The Veterans Administration offers a veteran or the surviving spouse of a veteran long term care benefits through its Aid and Attendance program. To receive this benefit, the veteran does not have to have a service-related disability. If the veteran or surviving spouse needs assistance with the activities of daily living they are eligible for… Continue Reading
No Step-Up for Property in Irrevocable Grantor Trust
In PLR 200937028, the IRS concluded that property held in an irrevocable grantor trust that was not included in the grantor’s estate at death does not receive a step-up in basis. Most individuals who own property in their own name at death receive a step-up in the tax basis of that property. For example, if… Continue Reading