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  4. SPECIAL NEEDS TRUST TO BE MADE AFTER DEATH FOR ROTH IRA

SPECIAL NEEDS TRUST TO BE MADE AFTER DEATH FOR ROTH IRA

JINAYAKO
  |     |   26 posts since 2022

My Problem is how to name my son as a Beneficiary on my ROTH IRA NOW? WHY? Because I intend to make a SPECIAL NEEDS TRUST After My Death. If I put My Special Needs Child's Name as my Beneficiary on my ROTH IRA, the money could go Directly on his name. Since he receives, Government Benefits, this money from my Roth IRA could DISQUALIFY him from receiving Government Benefits.

Right now since, I DO NOT have a Special Needs Trust made out, therefore,I can NOT put a Special Trust as a Beneficiary.

My problem is what I should put on my Roth Ira NOW. I can NOT put my 2nd Child and ask my 2nd Child to transfer as a Roth Ira into the Special Needs Trust after my death. This would destroy the TAX FREE status.

Under the Secure Act, Special Needs Child can still keep life long Tax Free Benefit status..

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Answers
kcfield
  |     |   186 posts since 2012
Hi Jinyako: I used to oversee a guardianship department in the community health system. We often turned to an attorney that specializes in special needs trusts who was tremendously helpful in assisting families in protecting their assets. The same attorney helped my mother in law when a special needs trust was needed for her mom. Though the hourly rate may be somewhat more than a general practitioner, I strongly recommend at least scheduling an initial appointment with an attorney that specializes in these to address the questions you raise; it will be well worth the cost.
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choice1
  |     |   370 posts since 2023
Where you have the Roth IRA should be able to point the way. After all they will be involved later in his life. If not, you have the wrong Roth trustee!
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