Special Needs Trusts: First-Party and Third-Party Reporting; Distribution Requirements For Professionals

We are pleased to announce that Deanna M. Eble will be speaking in an upcoming Strafford live webinar, “Special Needs Trusts: First-Party and Third-Party Reporting; Distribution Requirements” scheduled for Wednesday, February 2, 1:00pm-2:50pm EST.

A special needs trust (SNT) could be the entity that best fulfills the primary purpose of a trust, one person holding assets for the benefit of another. At the same time, its fiduciary and reporting responsibilities are among the most complex.

SNTs can be third-party or first-party SNTs. The former’s income can be taxed at the beneficiary or trust level; the latter is always taxable to the beneficiary, even when there are no distributions. Understanding when to distribute income can provide significant tax savings or needed cash flow for a trust and its beneficiary. Like trusts in general, distributions from SNTs are authorized by the trustee.

First-party trusts are irrevocable and are usually established for the benefit of someone receiving government benefits. A third-party trust can be revocable or irrevocable, and its tax liability paid by parents or other grantors. Tax practitioners working with these trusts or who have clients that could benefit from an SNT need to understand the reporting responsibilities and planning opportunities that come with these trusts.

The panel will explain first-party and third-party SNTs for tax practitioners working with these trusts or working with clients who may benefit from an SNT. The panel of seasoned trust experts will discuss the unique tax reporting obligations and planning considerations for SNTs.

We will review these and other key issues:

• Recognizing first- and third-party SNTs
• Key reporting differences between first- and third-party SNTs
• 1041 filing options for first-party SNTs
• Coordinating an ABLE account and an SNT

After the presentations, the panel will engage in a live question and answer session with participants and answer your questions about these important issues directly.

We hope you’ll join us.

For more information or to register > https://bit.ly/3dtov52 

Or call 1-800-926-7926
Ask for Special Needs Trusts: First-Party and Third-Party Reporting on 2/2/2022
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