How to Give Without Jeopardizing Government Benefits
A grandmother wants to divide her wealth equally among her grandchildren — but one grandchild has Down syndrome, and a simple gift could unintentionally jeopardize eligibility for important government benefits. In this Tuesday Triage episode, Jill walks through required minimum distributions (RMDs), why “equal” doesn’t always mean “fair,” and how thoughtful planning protects both generosity and long-term support. You’ll learn how special needs planning tools like ABLE accounts and third-party special needs trusts help families give with love without causing unintended consequences.
What You’ll Learn in This Episode
The Real Question Behind the Gift. Why a grandmother’s desire to treat grandchildren equally can create hidden risks, how generosity and fairness sometimes require different planning strategies, and the importance of slowing down before writing checks.
Understanding Required Minimum Distributions (RMDs). What an RMD actually is and why age 73 matters, how the IRS calculates your RMD using life expectancy tables, and the difference between a traditional IRA and a Roth IRA when it comes to RMD rules.
Family Dynamics Most People Skip. Why conversations with parents matter before giving money to grandchildren, common emotional expectations that quietly attach themselves to gifts, how financial gifts can create tension between generations, even when well intended, and alternatives to cash gifts that still feel meaningful
Accounts for Minors Explained Simply. What a 529 account is and when it makes sense, the difference between UTMA and UGMA accounts, and why custodial accounts legally belong to the child.
Special Needs Planning Essentials. What “means-tested benefits” actually means, why direct gifts can unintentionally reduce or eliminate SSI or Medicaid eligibility, how eligibility thresholds work and why even temporary increases matter, and the long-term consequences of well-intentioned gifts.
Tools That Help Families Give Safely
Third-party special needs trusts. Funded by parents or grandparents and assets don’t count against benefits. when properly drafted
ABLE accounts. What ABLE stands for (Achieving a Better Life Experience), how these accounts allow savings for individuals with disabilities, 2026 contribution limits and key restrictions, and why coordination with parents is crucial.
The Bigger Lesson. Why communication matters as much as the money itself, how mismatched expectations can create family conflict, and why thoughtful planning is an act of love, not just a legal exercise.
Resources & Links
Tennessee Estate Planning Services with Jill Mastroianni: https://www.deathreadiness.com/estate-planning-solution
Connect with Jill:
Website: DeathReadiness.com
Email: jill@deathreadiness.com
Learn more about Jill’s solutions
Subscribe to the Death Readiness Dispatch!
Submit a question for Tuesday Triage
Did you enjoy this episode? Share it with someone you care about.
