TRUST INCOME TAX CONSIDERATIONS PART 3
Types of Trusts Revocable Living Trust (RLT) – This is the standard trust that is revocable during the lifetime of the grantor and become irrevocable on death. Bloodline Trust (BLT) – This is a trust that usually take effect on the death of the grantor and is designed to protect children from claims of creditors,…
ABLE ACCOUNT, THIRD PARTY SPECIAL NEEDS TRUST AND POOLED TRUST: COMPARE
by Thomas D. Begley, Jr., Esquire, CELA Below is a chart comparing an ABLE Account with a Third-Party Special Needs Trust and Pooled Trust. ABLE ACCOUNT THIRD PARTY SPECIAL NEEDS TRUST OR POOLED TRUST Onset of Disability Qualifying disability exists prior to age 46 No requirement but not usually used unless beneficiary…
ADVANTAGES AND DISADVANTAGES OF ABLE ACCOUNTS
by Thomas D. Begley, Jr., Esquire, CELA Congress enacted and the President has signed legislation known as the Achieving a Better Life Experience (ABLE) Act of 2014. The Act is modeled on 529 Plans and will provide tax-favored accounts for individuals with disabilities to pay for qualified expenses. The advantages of ABLE accounts are as…