@SteveJ57 wrote:
So, another question, if you are willing to offer more: who files taxes on the gains (divs & interest) in the SNT when they occur? I'm hoping not the grantor/trustee (us--we file jointly), because it's not our money/gains and it would throw a monkey wrench into our tax situation. A separate return for the SNT?
If the trust is revocable and you have used your wife's SSN on the account(s), then the trust is essentially treated as a disregarded entity and, yes, the grantors (you and your wife, ostensibly) would report and have income tax liability on any income and/or gain.
I previously asked you if this was a QDisT and that's important for a few reasons, particularly the fact that these trusts get their own tax exemption ($4,700 in 2023).
See https://www.specialneedsalliance.org/wp-content/uploads/2016/04/Qualified-Disability-Trust.pdf
You might want to discuss this with legal counsel and a local tax professional.
@SteveJ57
