This will ensure that no trust assets will ever be considered to be that of the beneficiary’s, thus leaving him or her eligible for government benefits. It is critical that you use the tax identification number rather than the beneficiary’s social security number or the trustee’s social security number. This tax identification number is used in lieu of an individual social security number when opening accounts or filing income tax returns for the trust. TAX IDENTIFICATION NUMBERĪfter making sure that the trust is irrevocable, you should then either telephone in, fax, or mail a copy of the completed SS-4 form to the IRS which will provide you with the tax identification number to be associated with the trust. Second, it is generally the case that to meet the asset eligibility requirements for Medicaid and SSI, a supplemental needs trust must be irrevocable. The assets could also be subject to any judgments in any lawsuits against the estate. This means that upon the settlor’s death, everything in the supplemental needs trust is included in the settlor’s estate for tax purposes. First, the government will consider the assets held in a revocable trust to be part of the settlor’s estate when he or she dies. Filing for a tax identification number and/ or funding a revocable trust could create several problems. If a trust is currently revocable, it should be amended and made irrevocable before filing for the tax identification number and before funding begins. Before you open any accounts in the trust’s name, you must first apply for a tax identification number by filling out the Internal Revenue Service (IRS) form SS-4. It is important you properly administer the trust so that naive distributions from the trust do not disqualify the beneficiary from the benefits he or she requires. The purpose of the OBRA ‘93 Trust or a Supplemental Needs Trust is to allow the disabled beneficiary to benefit from the funds in the trust without losing his or her eligibility for government benefits including, but not limited to: SSI, SSDI, and Medicaid coverage.Īs trustee you will be responsible for investment of the funds, accounting to the beneficiary (and possibly others such as your state’s department of public aid or the Social Security Administration (SSA)), and making proper expenditures or distributions for the benefit of the disabled beneficiary. We recommend you keep this memo for future reference. This memo is intended to help you properly administer an OBRA ‘93 or a Supplemental Needs Trust for its beneficiary. Immigration Compliance and Policy Support.
0 kommentar(er)
