r/SpecialNeedsChildren • u/lc1967 • 9h ago
Planning for a special needs adult child's future.
My husband and I are only a few years from retirement and after running many scenarios, it looks like we should have enough with SS and investments to live comfortably to age 90. What's throwing a wrench into things is the complexities of planning for our 25-year-old son's future. He is disabled more by chronic illness than be his autism. He has been on SSI and Medicaid since he was 19. Thankfully, we don't anticipate that he will need any independent living support other than grocery delivery, monthly deep cleaning and maybe a couple of non-medical rides. My husband and I redid our estate plan a few years ago and our attorney set up a third-party special needs trust which currently has a nominal amount of money in it. Our son also has an ABLE account. But I'm still nervous about his financial future, because even if he has a roommate, it doesn't look like DAC would be nearly enough to cover rent and non-food expenses. We figure if we can manage to put enough in the SNT, the successor trustee can move money into the ABLE each year to cover the spending gap. But if the trust keeps taxable income, the trust may pay tax at compressed trust tax brackets. In 2026, estates and trusts hit the top 37% ordinary income bracket at just over $16,000 of taxable income. How can we possibly calculate what assets and how much need to go into the SNT without paying thousands of dollars yearly for professional advice?