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Special Needs Trusts: First-Party and Third-Party Reporting; Distribution Requirements

A live 110-minute CPE webinar with interactive Q&A

This program is included with the Strafford CPE Pass. Click for more information.
This program is included with the Strafford CPE+ Pass. Click for more information.
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Thursday, September 18, 2025

1:00pm-2:50pm EDT, 10:00am-11:50am PDT

Early Registration Discount Deadline, Friday, September 5, 2025

or call 1-800-926-7926
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This webinar will explain first-party and third-party special needs trusts (SNTs) for tax practitioners working with these trusts or working with clients who may benefit from an SNT. Our panel of seasoned trust experts will discuss the unique tax reporting obligations and planning considerations for SNTs.

Description

An SNT could be the entity that best fulfills the primary purpose of a trust, one person holding assets for the benefit of another. At the same time, its fiduciary and reporting responsibilities are among the most complex.

SNTs can be third-party or first-party SNTs. The former's income can be taxed at the beneficiary or trust level; the latter is always taxable to the beneficiary, even when there are no distributions. Understanding when to distribute income can provide significant tax savings or needed cash flow for a trust and its beneficiary. Like trusts in general, distributions from SNTs are authorized by the trustee.

First-party trusts are irrevocable and are usually established for the benefit of someone receiving government benefits. A third-party trust can be revocable or irrevocable, and its tax liability paid by parents or other grantors. Tax practitioners working with these trusts or who have clients that could benefit from an SNT need to understand the reporting responsibilities and planning opportunities that come with these trusts.

Listen as our panel of trust and estate experts details how to distinguish first- and third-party trusts, Form 1041 filing options for first-party trusts, coordinating SNTs with ABLE accounts, and distribution considerations for trust and estate advisers recommending and filing returns for SNTs.

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Outline

  1. Special needs trusts: an overview
  2. First-party SNTs
    1. Reporting requirements
    2. Distributions
  3. Third-party SNTs
    1. Reporting requirements
    2. Distributions
  4. Coordinating with ABLE accounts
  5. Best practices

Benefits

The panel will review these and other key issues:

  • Recognizing first- and third-party SNTs
  • Key reporting differences between first- and third-party SNTs
  • 1041 filing options for first-party SNTs
  • Coordinating an ABLE account and an SNT

Faculty

McInerney, Jennifer
Jennifer Marie (Jenny) McInerney
Attorney
McInerney Law Firm

Ms. McInerney's primary practice areas include Wills and Trusts, Special Needs Planning, Estate...  |  Read More

Attend on September 18

Early Discount (through 09/05/25)

CPE credit processing is available for an additional fee of $39.
CPE processing must be ordered prior to the event. See NASBA details.

Cannot Attend September 18?

Early Discount (through 09/05/25)

CPE credit is not available on downloads.

CPE On-Demand

See NASBA details.

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