Who Is Responsible For Paying The Taxes On A Special Needs Trust?

It is the trustee’s responsibility to have all the tax returns prepared and to pay all the taxes that a trust owes from the trust. It is also advised that the trustee make sure that the beneficiary files all of his or her tax returns and the trustee can use some of the trust funds to pay the taxes for the beneficiary for that portion that was required because of the trust.

How Do I Choose An Investment Advisor For The Special Needs Trust?

You would do it much the same as you would choose your own professional advisor for investing. You want to be sure that the person you are selecting is qualified, that they have their appropriate licenses, and that they are a person that you are comfortable with, who you can call and ask questions and you understand the answers that they give you. You want to be sure it’s someone who can adequately explain the purpose for the investment decisions they are making. It would also be a benefit if they have prior experience doing fiduciary investment accounts, or investment accounts specifically for trusts. It helps because there are some investment decisions that may be different because of the requirements of the fiduciary.

Then you want to figure out what their fee structure is and how it’s calculated, and find one that is compatible with the trust investment model. Generally, trusts do not generate a lot of investment activity. They buy assets and tend to hold them and generate income from them, so it would be best to have an advisor whose fee structure is appropriate to that type of investing.

Make It Happen With Lorenzo Law

If you have been named trustee of a special needs trust, or if you simply want to know how to manage a trust in the most tax-efficient manner, contact estate attorney Jose Lorenzo by calling (305) 999-5411, completing our online contact form or visiting one of our offices in Coral Gables and Ft. Lauderdale. We serve clients throughout the entire state of Florida.