Allen Legislation Would Study Feasibility of Tax Free Trusts for Individuals with Developmental Disabilities

By Adam Bauer | February 4th, 2013 - 2:38pm

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Legislation approved today by the Senate Health, Human Services, and Senior Citizens Committee would commission a study on the feasibility of allowing family members and caregivers of persons with developmental disabilities to establish tax-free trusts for the long term care needs of those individuals.

S-1034 is sponsored by Senator Diane Allen and explores the possibility of allowing pre-state tax contributions to special needs care and placement trusts designed to supplement Medicaid benefits received by persons with disabilities. Current law allows the establishment of such accounts, but does not allow for pre-tax contributions.

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Adam Bauer, 609.847.3600

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