CA Special Needs Trust Question

[Stephanie1970]

What is the name of your state? CA
Can a third party add assets (bi-monthly checks) to an Irrevocable Special Needs Trust set up to protect assets of disabled person?

The Special Needs Trust (SNT) has a "commingling" provision stating that all:

"...public benefits and earnings of Beneficiary shall not be commingled with other Trust assets...nothing in this provision shall be construed to require the addition to this Trust Estate of either public...benefits or earnings received by, or on behalf, of any beneficiary herein."

This revenue is coming from an "employer" of the beneficiary---providing a small amount of cash-but not enough to replace SSDI benefits.

The federal allowable earning limit with SSDI is too low for this area of the country and both the benefits and cash are needed to survive.

If the checks/revenue can be added to the SNT:

1) Will checks show as IRS income to the beneficiary?
2) Will employer issue IRS 1099 or other to the SNT?


Thank you!What is the name of your state?What is the name of your state?

 

[divgradcurl]

In other words, the beneficiary has a job, but wants to hide the income from the job by depositing it into the trust, so that the IRS won't cut off SSDI?

If the beneficiary has a regular job, where taxes are withheld and the employer pays payroll taxes on behalf of the beneficiary, the IRS already knows...

You can check with an attorney to make sure that there is no way around this, but it certainly doesn't appear that there is anyway to legally hide the income from the IRS.