FROM MY DESK:
3 Reasons to Fund an SNT with a Structure

Dear Colleague,

Funding a Special Needs Trust with a structured settlement provides three primary benefits:

1) Trusts may be subject to high tax rates, so it often makes sense to feed the trust systematically as opposed to placing 100% of the settlement in trust right away.

2) People with Special Needs Trusts generally have lifetime needs. Lifetime annuities guarantee the money won’t run out due to poor investment results, dissipation, etc.

3) Trust assets are generally subject to ongoing asset management and/or trustee fees. Much like avoiding excessive taxation, feeding the trust can reduce these costs.