SPECIAL NEEDS TRUST TO BE MADE AFTER MY DEATH? HOW TO NAME IRA BENEFICIARY ?

JINAYAKO | Oct 20, 2024 | 26 posts since 2022

SPECIAL NEEDS TRUST TO BE MADE AFTER MY DEATH? HOW TO NAME IRA BENEFICIARY UNTIL THEN?

MY BROKER REQUIRES A BENEFICIARY ON MY IRA. IF I PUT MY CHILD's NAME NOW. THE MONEY TECHNICALLY MUST GO DIRECTLY TO MY CHILD. THIS WILL DISQUALIFY MY CHILD FROM RECEIVING GOVERNMENTS BENEFITS

WHAT IS THE SOLUTION TO PROTECT FROM THIS MISTAKE WHEN I WILL NOT BE THERE TO EXPLAIN THAT IT WAS SUPPOSED TO GO IN A SPECIAL NEEDS TRUST. THIS MEANS THAT THE MONEY TECHNICALLY DOES NOT BELONG TO MY CHILD. BUT JUST MEANT FOR MY CHILD'S USE.

THANKS..

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choice1 | Oct 21, 2024 | 371 posts since 2023

Talk to a elder law or Medicaid attorney

Vernazza | Oct 21, 2024 | 34 posts since 2022

Jinayako,

I would talk to an expert, but your child needs to have the IRA custodian/trustee list the legal name of the special needs trust as the beneficiary. If the special needs trust is not created yet, you may have to name your revocable trust as the beneficiary. Not all IRA's custodians permit the listing of unnatural persons (ie entities) as beneficiaries. It's clear how much you love and care you put into your childs needs and future.

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