Change from Complex to Qualified Disability (Special Needs) Trust - Spidell

Change from Complex to Qualified Disability (Special Needs) Trust

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Message Board Change from Complex to Qualified Disability (Special Needs) Trust

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    • #262200
      Don Corriea
      Participant

      Question about 1041 Trust Return.  Trustee for a trust that was setup several years ago for her sister who is disabled and collecting SSDI.  When the trustee did the first return, she setup as a Complex trust. Now, years later she realizes that she possibly could have, should have selected a Qualified Disability Trust and saved tax dollars.

      Question: Is the it really an irrevocable choice, or can she change it or go back and revise all previous returns to be a QDT?

      If she can change, how to do it?

      Thanks in advance
      Don

    • #262433
      Diane White
      Participant

      First look to the Trust Agreement to verify it is truly a Qualified Disability Trust. The only difference between the taxation of the Complex Trust and the QDT is the exemption amount. As long as the statute is open an amended return can be filed with an explanation of the change.

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