Chapter 7 - Estate Planning for Special Needs

Question 1

Special Needs

Answer 1

Autism, Disability, Blindness,…

Question 2

Exclusion vs. Deduction

Answer 2

Exclusion - not included on gross income (it can be a gift)
Deduction -an expense originally included in GI, then deducted to reduce amount of income subject to tax. Pre 2019 (alimony)

Question 3

Deductions related to Special Needs

Answer 3

1. Impairment Related Work Expenses
2. Unreimbursed Medical Expense Deductions
3. Medical Conferences and Seminars

Must be recommended by a physician to be deducted.

Question 4

ABLE Accounts

Answer 4

Speical needs accounts that are set up to benefit a special needs person to pay for qualified disability expenses. Must have had disability before 26.

• Contributions $15k a year from friends and family.
• Income earned is tax free
• Withdrawals must be used for QDE. (Housing, healthcare, Employment, Health care)
• Cap is $300k.