3 ms·

As you approach $100k in assets, you get into special needs trusts.

by zie 3y ago

cogman10 3y ago
Right, but what happens when I die and there's 90k in the account? In 2->5 years, you'll need to start rolling money into the SNT, yet the only person that can do that is my kid. What if they don't have the wherewithal to know they have to do that? Able works if my kid can make ok financial decisions. It's a bad idea if they can't.
- zie 3y ago
  If they can't make OK financial decisions, it doesn't really matter does it? There are 2 choices: - Either you set it all up ahead of time and they have someone you trust to watch over them after you are gone. - They get shunted into the system and whatever happens, happens.
  - cogman10 3y ago
    I didn't say I'm not preparing things. I'm saying an able account isn't a slam dunk. An able account, if mismanaged, can disqualify my kid from Medicare. That means costly and time consuming legal intervention to correct while my kid misses out on medical care they need. The third option is waiting on the able account (not the SNT). There's little harm in waiting.
    - zie 3y ago
      Of course it's not a slam dunk, but it's literally the best and (besides the complicated SNT) only option. Obviously, if you go over the limit, they would be disqualified while the balance is over. Again, I think you are way over-thinking this: - If the kid is responsible enough to handle it, then there is no problem. - If the kid isn't responsible enough, then someone will be the responsible party. - If you don't know if the kid is responsible enough yet, then you assume they aren't for the time being. No problem arises regardless of the state of their financial responsibility. It's not rocket science. As for waiting or not, that's your call, but you want compounding to work in your favour. Our current plan is ABLE and start the SNT hassle up as we approach the limit(which hopefully will go up before we reach it).

As you approach $100k in assets, you get into special needs trusts.

by zie 3y ago

As you approach $100k in assets, you get into special needs trusts.

Right, but what happens when I die and there's 90k in the account? In 2->5 years, you'll need to start rolling money into the SNT, yet the only person that can do that is my kid. What if they don't have the wherewithal to know they have to do that? Able works if my kid can make ok financial decisions. It's a bad idea if they can't.

zie 3y ago
If they can't make OK financial decisions, it doesn't really matter does it? There are 2 choices: - Either you set it all up ahead of time and they have someone you trust to watch over them after you are gone. - They get shunted into the system and whatever happens, happens.
- cogman10 3y ago
  I didn't say I'm not preparing things. I'm saying an able account isn't a slam dunk. An able account, if mismanaged, can disqualify my kid from Medicare. That means costly and time consuming legal intervention to correct while my kid misses out on medical care they need. The third option is waiting on the able account (not the SNT). There's little harm in waiting.
  - zie 3y ago
    Of course it's not a slam dunk, but it's literally the best and (besides the complicated SNT) only option. Obviously, if you go over the limit, they would be disqualified while the balance is over. Again, I think you are way over-thinking this: - If the kid is responsible enough to handle it, then there is no problem. - If the kid isn't responsible enough, then someone will be the responsible party. - If you don't know if the kid is responsible enough yet, then you assume they aren't for the time being. No problem arises regardless of the state of their financial responsibility. It's not rocket science. As for waiting or not, that's your call, but you want compounding to work in your favour. Our current plan is ABLE and start the SNT hassle up as we approach the limit(which hopefully will go up before we reach it).