Special needs trust accounting questions

Special needs trust accounting questions

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Since: May 07

chill valley

#1 May 30, 2007
I'm the trustee for my brother's SNT. Our mother passed away recently. My brother has a disability and receives our mothers Social Security. I am trying to keep track of his spending and put the entries into groups. He is prohibited from using his trust for buying food, but there are entries from stores that might sell food, like Costco, Safeway, Longs, or any other store where he might be buying some kind of non-food product.

How do I show that he is not using his trust for food if he shops in some of these stores for his household? Do I need him to keep every Safeway receipt? I don't know if he is capable of that.

If he makes purchases online, like at Amazon, do I need to itemize each one? Or just specify something generic? They sell food there, too, so can any of this be detected?

I have all of his billing statements for his debit card and it's mostly movie theatres and gasoline, phone, and hobby supplies. I'm trying to do my best, but this question is perplexing to me and I haven't been able to find any answers or get decent answers from the humans I know.
SNT Acconting Questions

Holbrook, NY

#2 Jun 2, 2007
I know itis difficult to try and keep each little receipt and the statements do not always specific what the charge was for but he is going to have to keep the cash register receipts. For household,cleaning supplies etc. maybe he could just shop in a hardware store like home depot.I am also a trustee for an SNT. I have been Googling my head off trying to find answers. Maybe we could put our heads together and figure this out! e mail [email protected] Jim

Since: May 07

chill valley

#3 Jun 3, 2007
Even those receipts are often difficult to read... I know he's going to protest... I don't keep the receipts for half the stuff I buy for myself.
Coyoteugly59

United States

#4 Jun 7, 2007
It is very important to keep those receipts. Some will raise red flags. I suggest that you get a free consult from an tax attorney.
amaurice

Cairo, Egypt

#5 Jun 20, 2007
hello
jimfromearth

Freeport, NY

#6 Oct 15, 2007
How are you doing with your brother's SNT? i have learned a little more if you would like to know. e mail
Supplemental Needs Trust

New York, NY

#7 Dec 5, 2008
I wonder, can you pay for house utilties, like gas and electric? with this SNT? I know you can pay for phone and internet service. Thanks
sister

United States

#8 Feb 25, 2009
I am starting a SNT for my brother I have read everything out there. I like the book "Special Needs Trust Administration Manual" a guide for Truatees. you can order it at any book store for $15.00 it is well worth the money.A nother good one and it comes with a CD is Special needs trust by; Stephen Elias it it $34.99 It will say on the front ( protect your childs future. It is not just for that it has so many thing in it I realy like it...I hope this helps, Also get on the dept. of human services and you can get upto date info.
jimfromearth

New York, NY

#9 Nov 26, 2009
i believe the SNT can pay for cable tv, internet,phone, and cell phone but not electric and gas. if you find out diffrent let me know. thanks
jimfromearth

New York, NY

#10 Dec 5, 2009
where did everyone go?
RGG

Philadelphia, PA

#11 Jan 4, 2010
jimfromearth wrote:
where did everyone go?
Hey folks, just found this discussion today. I am the trustee of my son's SNT, and would like to know how have you filed taxes and done accountings for it.
There is something like "pass-through" tax filing, where you file IRA form 1041, but its "information-only". Does anyone know about it?
Where can I find the samples for how to do court accountings annually.
Thanks, would like to keep in touch if folks are interested to address these issues as they come and help each other.
Special Needs Trust

Mastic Beach, NY

#13 Jan 14, 2010
Just came across this message board and was reading the comments about debit cards being used. Can someone actually set up a special needs trust and there be a debit card attached to the account for the disabled person to use when they shop? Any info appreciated.
Otherguy

Baltimore, MD

#14 Mar 18, 2010
Yes. Debit cards can be used with an SNT account. Put the bulk of the SNT into some interest bearing account or other investment, and what you expect to use during the year into a checking account with Debit/Credit card attached. Use ONLY the card for all expenses during the year and you get a year-end summary to use for tax and accounting purposes. This makes it much easier come tax time. You still have to keep any receipts used for cash items.

I don't know anything about "pass through" tax accounting, but SNT accounting is relatively easy - Anything besides food and shelter can be purchased. Sometimes, food (going out to eat) can be written off, as well as shelter related items (new heater). But don't think of paying the groceries or the gas bill with the SNT!
Otherguy

Baltimore, MD

#15 Mar 18, 2010
Yes. Jimfromearth - "i believe the SNT can pay for cable tv, internet,phone, and cell phone but not electric and gas. if you find out diffrent let me know. thanks" It is true. You can buy a 52" flat screen TV for the SNT trustee, but not a bag of groceries. Remember though, you can get away with a meal out now and then if you 'word' it correctly in the accounting.
AquaMaven

Los Angeles, CA

#16 Jun 15, 2010
I am managing a SNT for my sister, and was informed that because she recieves SSI, I can only spend $100 per month on goods and services, but not food or clothing for her.
I was told that anything over $100 per month, is a violation, and this money will be deducted dollar for dollar from her future SSI checks.
HELP!
I have a snt trust and

Los Angeles, CA

#17 Sep 6, 2010
I did not know what it was till Aug 4th.
As information comes in from the "experts" as to issues many have, I'll post things I find out at my trusts expense. My sister is my trustee and
I was expected to be in worse shape by my deceased parents than I am.
SSD and Medicare eliminate much of the monetary problems created with SSI and medicaid/medical
etc.

I am aggregating my 12 months of current bills and yearly averages over past 3-5years for the "hired" fiduciary to make a budget, as soon as they find out what can/cannot be expensed.

I have spent a lot of time reading in the internet
SSI & medicaid very easy to comply with due to all its restrictions.

My situation is rarely ever mentioned.

ADULT with SSD and Medicare 5 years from full retirement.

***thanks for the debit card tip*******
DWNETT

United States

#18 Oct 12, 2010
Be careful with the debit card... Any type of card the benneficiary uses CANNOT have the ability to get cash. A credit card with a 2000 dollar cash advance option will disqualify for SSI and Medicaid, because technically it was "available" to them.
We have just set up a SNT and will find out tomorrow what is normally done in this situation to protect the public bennifits.
Peg

Mastic Beach, NY

#19 Oct 15, 2010
Right now I'm just trying to spend down a first party trust ... which very honestly is a pain but not that hard to do once you figure out just how to work it. This is money that just ended up under my daughter's name and grew until it would have disqualified her from SSI. It cost nice money (lawyers fee) to get it put into a first party trust and now I have to nickel and dime it until I empty the account.

I was wondering if anyone knows the answer to this next question I have. After I empty this first party trust account will the number of the trust account still be viable in case there is any more hidden money in the future that surfaces? Word to the wise ... get that money out of the name of any disabled person pronto ... don't let this happen to you because like i said ... it is a pain but its something I have to do. Talk about keeping all the receipts ... believe me I do that and more!!!! Good Luck to all!
Claire Felong

Burlingame, CA

#20 Apr 11, 2011
greenlight wrote:
Even those receipts are often difficult to read... I know he's going to protest... I don't keep the receipts for half the stuff I buy for myself.
That is the price we must pay for this benefit. My sister lives cross country so it is impractical to make purchases for her. She buys the items then mails us the receipts for re-imbursement. That assures the recordkeeping part.
Guy

Broomfield, CO

#21 Jun 27, 2011
Claire Felong wrote:
<quoted text>
That is the price we must pay for this benefit. My sister lives cross country so it is impractical to make purchases for her. She buys the items then mails us the receipts for re-imbursement. That assures the recordkeeping part.
Do you reimburse with a check to your sister? Is there any problem with the reimbursement being considered a cash payment? Thanks

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