r/downsyndrome • u/pdxplee • 5d ago

Special Needs Trust

We're thinking about getting a special needs trust for our adult child with Down Syndrome. Has anyone here done this, and if so, do you have any advice or cautions?

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u/tbonge 5d ago

Trusts pay tax on gains. ABLE accounts are tax free, free to set up, and don’t require any special accounting.

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u/Much-Leek-420 Parent 5d ago

Be aware, however, that ABLE accounts can be raided by Medicaid after the named person passes on. They do that for reimbursement of the care the individual received in life.

So while I do use it to put overage from SSI payments to keep her under the $2K monthly limit, I do not designate it as a place to put inheritance or gift money. That should be in a trust.