Articles Tagged with Manhattan trust law

Healthcare coverage has been an unsure and confusing issue for both young and elderly citizens over the past decade, with the potential to only become more complicated as a new president takes office. While laws have been amended throughout President Obama’s term to now allow young adults to remain covered under their parents insurance until they are 26 years old, there are no hard rules regarding whether parents can qualify under their adult childrens’ health insurance plans.

Narrow Exceptions To Covering Parents

There are limited situations in which an adult child could get their elderly or ailing parent covered under their company’s insurance provider, however, they must meet a number of requirements. Parents can be covered under their child’s insurance plan if they can qualify as a dependent and meet specific criteria. Dependents traditionally have been considered those children under the age of 26 who do not maintain coverage, spouses or domestic partners, however, parents can qualify generally if they meet the IRS definition of dependent upon their adult child.

If you inherit an individual retirement account, or IRA, there are a few key rules you should be aware of in order to avoid potential legal, financial, and tax issues. Failure to do so could result in a smaller legacy left behind and a headache for your beneficiaries.

Never Commingle Inherited IRAs with Non-Inherited IRAs

Inherited IRAs are separate financial accounts than IRAs or retirement accounts you may own and contribute to for yourself. You cannot commingle the funds from your IRAs and inherited IRAs. If you inherit multiple accounts from the same person such as your father, you can combine those accounts into a single IRA. Assets inherited from different individuals, such as your mother and father, you cannot combine those accounts. It is also important to note that you cannot combine inherited accounts of different types, such as your father’s traditional IRA and his Roth IRA.

There are three main types of trusts for special or supplemental needs. Each has their own specific purpose and use, and will apply differently for every party.

First Party Special Needs Trusts

The first party special needs trust was developed to be funded with assets owned by the trust beneficiary in order to help them qualify for government benefits. This type of trust is usually established when the intended beneficiary is about to receive either a lawsuit settlement, inheritance from an estate, a large gift, or assets, that would disqualify him from receiving supplemental security income. Supplemental security income has a qualifying threshold that the beneficiary must meet; the individual cannot possess personal assets that equal over $2,000.

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