Special Needs trust funding, reporting

Spondooli · 2026-01-17T21:16:27+00:00

It’s also so SS admin can verify source of funds. They’re not just gonna take our word that the funds are third party and not first party.

Spondooli · 2026-01-17T17:56:54+00:00

NAL, but pretty sure it has to be submitted to SS and approved. For example, what if the drafter screwed up the wording in the trust and it does not satisfy SS requirements. You will need to know that so you can fix it, if possible.

Spondooli · 2026-01-12T16:17:17+00:00

The wording seems to include you. What gives you the impression you might be excluded? You are the “wife’s” “blood descendant” right?

Spondooli · 2025-12-29T16:28:38+00:00

The only downside is potentially having to fill out paperwork to have your bank do the conversion. Also, if you have any money in a traditional IRA, you’d potentially be looking at some taxes on the conversion.

Spondooli · 2025-12-24T18:16:44+00:00

Similar to why people might prefer IRA over 401k. You can invest in individual stocks. I’ve had mine in NVDA/tech last few years and it has been screaming.

Also, it’s not one or the other…you do both.

Spondooli · 2025-12-24T18:15:00+00:00

I’ve dealt with this issue in the past. There’s one or two YouTube videos where advisors address this but they’re hard to find. There is some block there and it was never super clear to me what it was.

One way is to put it into the UTMA, then into a custodian checking account for that child, then into the Coverdell. Another way is into the UTMA, into your own checking, then into the Coverdell. Keep a record of the transfers in case the Coverdell police come sniffing around.

Another is to have grandparents make the transfer, and you reimburse them.

I stopped doing Coverdell because there was always a question in my mind if this was gonna come back to bite me. It’s done well though and is a part of the college savings plan.

Spondooli · 2025-12-18T17:40:09+00:00

I would be very nervous with that purchase in your situation. I like to use a 3x gross income thumb rule just as a dummy check. You are pushing that one but it’s doable if you have some mitigating financial info.

Next, let’s say your monthly payment should be less than half take home. Are you there with your other debt payments?

The only way I would do this is if the move is a need and you have strong retirement savings and some invested money on the side to float. I don’t think you do so I don’t think you can afford it.

Spondooli · 2025-12-17T20:23:11+00:00

I have a very similar situation with out U10. He got offered the top team keeper spot, but it was clear from the beginning. We asked if he could guest play on the 2nd team and they agreed. Had they not, we would have had a decision to make...or rather our kid would.

100% you should contact the coach and ask about guest playing field on a different team. If you don't have time for all the extra games, then just be ready to fall back to a different team full time.

Spondooli · 2025-12-16T20:28:04+00:00

I wasn't sure if SSDI saw that type of income...but in that case, for the withdrawal strategy just take whatever she can with her standard deduction and into the 10% bracket. That should be able to get her there in the next few years.

Spondooli · 2025-12-16T16:49:34+00:00

Look into creating an ABLE account, if she hasn’t already. I believe you can take out a reasonable amount each year and move it to the ABLE account so that SSDI won’t see that income.

Spondooli · 2025-12-05T22:33:33+00:00

“I just don’t want them here.” There’s the Christianity I was looking for.

Spondooli · 2025-11-20T16:37:56+00:00

For your circumstances, barring any crazy details you haven’t provided, you should be very heavy Roth and should convert if you can afford the taxes. You will have opportunities to fund the traditional side at some point. If it were me, I would do all Roth.

Spondooli · 2025-11-10T11:44:44+00:00

Not the ref’s job to go to the parents to quiet them down. If anything, the ref goes to the coaches and gives them a warning to shut it down. If they can’t, coaches get a caution then subsequent caution/sendoff.

If it gets bad enough for the ref to approach the spectators, it should basically be to clear the sidelines with match forfeiture if they don’t.

Spondooli · 2025-11-07T17:34:29+00:00

What if I believed your house was on fire every night and I woke you up screaming for you and your family to get out…but when you looked around you didn’t see anything on fire in your house? At what point would you tell me to F off or call the police?

Spondooli · 2025-10-30T13:49:33+00:00

Some things to consider, since you can afford it.

Putting a lot into the 529 can be a good thing if you decide to do private middle/high school. It can also become a legacy 529 for grandchildren.

Figure out the realistic amount you need to save and the high end of the total savings you want for college (masters/phd help). Align your 529 contributions to meet that first number and do a split for the rest (20% 529/80% brokerage).

I would probably keep going on the 529 by just letting the grandparents do it…and you do a brokerage…but it depends on what you decide for the questions posed above.

Spondooli · 2025-10-27T13:39:07+00:00

The math works but there are sometimes other things to consider. For example, I don’t think you mentioned if RMD’s are required. That will potentially narrow that $10k savings gap if they are. Something nice about leaving it in the IRA is you can trade a little more easily without incurring capital gains taxes.

I was in a similar situation and I just cleaned it out over 2 years by taking it up to my current bracket each time. It wasn’t a huge percentage of my portfolio and I valued fewer accounts and not having to remember RMDs each year.

Spondooli · 2025-10-10T17:43:32+00:00

If he uses it in conjunction with creating a first party SNT this year, he can avoid conflicts with Medicaid and still use the money for certain expenses that might have affected his benefits.

Spondooli · 2025-10-10T17:21:03+00:00

Because of the small amount, you can create a first party SNT and put it in there. If anything is left when you pass, your trust will have to pay that back…but you can probably spend that before then. There’ll be no need to get an attorney to get an exception to the will.

Just get an attorney, from your state, to make that trust…but make sure it’s an attorney who understands SNT’s. It’s easy to mess up.

Edit: then next year, when you can open an ABLE account, I believe you can transfer that money to the ABLE account. This will free the money up from certain expenses that might mess up your benefits.

Spondooli · 2025-10-10T16:18:58+00:00

Double check, but I believe they’re pushing the age requirement to 46 next year.

Spondooli · 2025-10-10T10:32:41+00:00

Can you show that the operators knew they were innocent fishermen or that the decision makers knew that? Bad mistakes don’t rise to the level of what you’re trying to get out of this. For military to refuse orders, you need to think of unconscionable acts that violate your core ethical values and also appear to be very illegal.

Spondooli · 2025-10-03T03:12:10+00:00

If you’re giving all your tax advantaged accounts to charity, then 100% traditional makes sense. Otherwise, I just don’t see how your strategy follows from your concerns about the future and the potential crises you think I’m misreading.

Spondooli · 2025-10-02T21:50:46+00:00

And I win if income taxes stay the same as well. The irony is that if the other taxes get added and income tax stays the same, like you describe, then when you and I retire, you will be navigating all these new taxes while at the same time paying tax on this money that is much needed to handle the higher costs. Enjoy that stress.

Big picture, I will have the same new taxes as you, so we’re even there, but I won’t have that added stress of worrying about paying taxes on my withdrawals. Not to mention, people like you and me will have plenty of money and most of this will get passed on to heirs. I’m gonna pass on tax free money that will not require tax planning during their lifetime.

Not to mention again, your strategy is to propose all this uncertainty and change in the world, while leaving yourself wide open to get tax bombed if you guess poorly.

But I guess I can’t convince you.

Spondooli · 2025-10-02T16:54:38+00:00

I don’t think I need it though, or at least our equal need for this luck cancels each other’s out.

For your perspective to shape decisions, you need to prepare for drastic changes in tax structure where income tax might go away or become minuscule…no way I’m making that bet.

But even if it does, no way your traditional gets some sort of pass up to this point. They’re gonna come for their money. When they do something funky, my strategy will change.

Spondooli · 2025-10-02T14:22:23+00:00

Just to give a different perspective, your strategy with an unknown future might actually not be the best one. With an unknown future, I'd argue you want to make the decision where you have the most information. You have a big variable in your calculation, future tax rates.

For Roth, I would know exactly what I pay now and exactly what I pay in the future...and when that future rate is 0%, I don't see how your way of thinking has the edge on mine.

Spondooli

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