Is a Qualified Disability Trust a Special Needs Trust?

Are is a Qualified Disability Trust a Special Needs Trust a topic you are researching? Find out the full story in our feature story.

Knowing the type of trust is key to ensuring the maximum benefit to the person with a disability while still complying with laws. Attorneys can also help ensure the trust is created using the language necessary to make it valid and an attorney can help ensure the trust is broad enough to meet the evolving needs of the person as they age.

Can a qualified disability trust qualify as a qdist?

According to IRC 642 (b) (2) (C) (ii), a trust can still qualify as a QDisT if the corpus of the trust transfers to someone who is not disabled after all disabled beneficiaries are deceased. The main benefit of a QDisT is taxation. Under IRC §642 (b) (2) (C), a QDisT is allowed the same exemption as an individual when filing their tax return.