Dennis is a successful business owner. His younger brother, Larry, was born with special needs. Dennis has supported Larry for the past ten years, including paying for an adult care facility.
Dennis recently learned about a special needs trust that would enable him to continue to provide Larry with the care he needs.
Dennis: I just turned 75 and Larry is fifteen years younger than me. Larry would be unable to meet his monthly expenses without my help. I love my brother dearly and recently started thinking about what would happen to him if something were to happen to me.
Dennis and his attorney discussed a charitable remainder trust and special needs trust. The trust would pay income to the special needs trust to support and care for Larry during his lifetime. Any remaining value in the trust would go to support their favorite charity.
Dennis: My primary concern was taking care of Larry. My attorney told me that this trust arrangement would produce some nice tax benefits too. I decided to fund the trust with appreciated stock. I was able to avoid capital gains tax on the sale of the stock and reduced my income taxes because I received a charitable deduction.
Is a charitable remainder trust and special needs trust right for you?
If you have a loved one with special needs and you're looking for a way to provide for that person today, a charitable remainder trust and special needs trust could help you and your loved one. You can also use a testamentary gift to fund a charitable remainder trust to produce an estate tax deduction. Please contact us
to learn more.
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