I am helping a friend, who has 2 sons with Duchenne, by setting up a trust to cover medical and medical travel expenses. What kinds of trusts have people set up for their fundraisers? I have discussed this with an accountant and we tossed around a few ideas but I wanted to know what were people using? You can post here or email me if you prefer ddmaher@yahoo.com.
Thank you!!!
Dana

Views: 3916

Reply to This

Replies to This Discussion

I recently had a Trust set up for my son. It's a Trust in his name and I had one of my aunts named as the trustee. There are also other trustees named to proceed her if needed. I can change the trustee at any time. She is the only one that can draw money out of the account for our son. We were told by the lawyer that set it up that is was not advisable to have the parents on it as the main trustee. Money's that go into the Trust can be used for my son's medical expenses, equipment and anything necessary for his care. The advantages to the Trust is that he can have money that is his and still be eligable for government benefits when he is of age without the government taking it first. People are more comfortable donating to a Trust. It cost us about $1200. I had other qoutes as high as $2500 from other attorneys. You will have to get an EIN # from the IRS and set up a bank account for the Trust. Hope this helps!
I am very confused by all of this. I was trying to organizing a fundraiser, but am having a hard time understanding this whole concept. What if you do not have $1200.00? We need money to make house accomodations and medical expences. So do you have to have a receipt for everything that you spend the money on? Have you actually done a fundraiser? I was just wondering if someone had any ideas on how to get started!!!
Hi Dana, You would need a special needs trust and for that you should contact an attorney. Also, I am fundraising for my son and our Non Profit Charity is called Keep Jared Jumping. The reason I set this up first and not the trust is people cannot write off their donations through a trust. I will find my email to others about this and forward you what I had to do. Hope this helps. Kari
Here it is and this is so much cheaper than a trust: Setting up a non profit is not too hard, just takes some time. First, you must have an EIN # (tax id). You can apply online at: https://sa2.www4.irs.gov/modiein/individual/index.jsp
What the IRS told me as long as the donations are under $5000 you are safe collecting donations for your son only. Otherwise you have to file a Form 1023 and help others as well. You must file a 990 form each year with the IRS. Look at a wealth of info here: http://www.irs.gov/charities/index.html

Once you get your EIN number, be sure to print out the forms for your records and you will need them to apply for a bank account and fictitious business name statement. The bank won't let you open an account until all the rest is completed. My non profit is called Keep Jared Jumping and my husband and I have our names only on it so far. Fictitious Business Name statements get filed with your county recorder and your local newspaper can help you with the filing and running the name ad.
Kari,
Thanks for providing that additional info. I too will look into it further. Did you not need a lawyer to set it up? I called the IRS and asked about setting up a non profit for my son for donations and got nowhere. Maybe I was talking to the wrong people but they told me I could not set one up for donations for my son. I asked a lawyer about it and she did not know enough about setting one up to tell me anything but thought it would be very expensive to do. I would like to hear more from others that have done this. The drawback to people donating to a Trust is exactly what you said - no tax deduction for them.
Thanks for all the info. My understand was that you couldn't have a nonprofit corp. that was for the benefot of 1 person,but I don't know that for certain. I am in the process of gathering information from some attorney friends but none of them have done anything like this for this situation, an ill child(ren). Is the $5,000.00 cap for the nonprofit corp. per year or per donation?

An accountant suggested have people donate to a fund at a church or other nonprofit organization specifying for the benefit of a particular child, so they could get the tax deduction and having the organization then turn the money over to the trust. Has anyone done this?

I have to do more research, but everyone's experiences help alot. keep them coming.
Dana
My understand was that you couldn't have a nonprofit corp. that was for the benefot of 1 person,but I don't know that for certain.

This was kind of the understanding I came away with after talking to the IRS but even they seemed unsure.
Does anybody know how to go about setting something like this up in Canada? We have a family member in the US that would like to help us by making a donation through his business but would like to receive a tax receipt, Does anybody know how we can make this work? Any information would be greatly appreciated.
Thank You
Has anyone found anything more about setting up a nonprofit for an MD child? My son-in-law would like to somehow stay home with my grandson and provide caretaking. Our thought was to set up a nonprofit to apply for appropriate grants. Any help would be greatly appreciated.

Karen Barnett said:
My understand was that you couldn't have a nonprofit corp. that was for the benefot of 1 person,but I don't know that for certain.

This was kind of the understanding I came away with after talking to the IRS but even they seemed unsure.
Just something to remember, you will have to be very careful about how you set this up if you are planning on your sons collecting their SSI later. When they turn 18 they do not count parents income or assets, but they cannot have more than $2,000 in assets in their name and they cannot accumulate more than $2,000 while on SSI or payments will stop until they are below $2,000 in assets. You even have to be careful about how a special needs trust is worded, if I remember right it has to be set up so that it is only to be used when all other resources are exhausted. We got a lot of this information when we had my sons Power of Attorney paperwork set up. The attorney that drew them up for us was very knowledgeable and helpful.

Susan
Thanks, that was my understanding when I talked to the IRS also.

Stan Stelter said:
Has anyone found anything more about setting up a nonprofit for an MD child? My son-in-law would like to somehow stay home with my grandson and provide caretaking. Our thought was to set up a nonprofit to apply for appropriate grants. Any help would be greatly appreciated.

Karen Barnett said:
My understand was that you couldn't have a nonprofit corp. that was for the benefot of 1 person,but I don't know that for certain.

This was kind of the understanding I came away with after talking to the IRS but even they seemed unsure.
Dana - we live in WA state and there is a trust that you can set up for disabled kids. The cost is $600. Annual fee is about $75. It's guaranteed. The state used to match a portion of the funds but not now with what's going on with the economy. The site it called The Arc...you should see if your state as it. Char Burke

Reply to Discussion

RSS

Need help using this community site? Visit Ning's Help Page.

Members

Events

© 2021   Created by PPMD.   Powered by

Badges  |  Report an Issue  |  Privacy Policy  |  Terms of Service