[WSBAPT] ERISA beneficiary and Special Needs Trusts

[Marcus Fry]

Gair Petrie out of Spokane is who you want to speak to.  Also, you may
want to take a look at PLR 200620025 dealt with an IRA.

 

Marcus J. Fry

Lyon, Weigand & Gustafson, P.S. 
Adoption Attorney*

P.O. Box 1689 
Yakima, Washington  98907 
Telephone:  (509) 248-7220 
Facsimile:  (509) 575-1883 

 

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of Adoption Attorneys, an invitation based organization of 300+ attorneys
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recommendation. Washington's Supreme Court has not yet developed or
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From: wsbapt-owner at listserv.nethelps.com
[mailto:wsbapt-owner at listserv.nethelps.com] On Behalf Of Nancy Lee
Sent: Friday, January 03, 2014 2:25 PM
To: WSBA RPPT Probate & Trust Discussion Forum
(wsbapt at LISTSERV.NETHELPS.COM)
Subject: [WSBAPT] ERISA beneficiary and Special Needs Trusts

 

Listmates,

Adult disabled client, not subject to a guardianship, receiving
needs-based benefits, SSI and Medicaid.  Discovers ex-stepfather (who did
not know ex-stepson was disabled) designated him as beneficiary of
ex-stepfather’s retirement annuity governed by ERISA.   Client receives
small lump sum of back payments, which are immediately and properly placed
into a properly drafted SNT, but the plan requires he receive regular,
monthly installments on the remainder of the annuity and they cannot pay
the balance in lump sum.  Client’s eligibility for his needs-based
benefits are now at risk because the regular, monthly payments are by
definition “unearned income”, and put him over the income limits for his
needs-based benefits (assets and income are evaluated separately).  The
plan’s attorneys, who are actually trying to be helpful, initially agreed
that if I obtained a court order in Superior Court directing them to
re-direct the payment to his SNT, that should work.  I was ready to file
my petition and invoke In Re Riddell  in Superior Court by asking the
court to re-open the now closed decedent’s probate (court has authority to
rule on NPA), which I have been successful at before. Now on further
analysis, the plan attorney’s say that the proper venue should be Federal
District Court after their appeals process has been exhausted (they
originally agreed to waive that process, but now feel it is important to
develop the record).  I’m not arguing this yet because (1)  it all sounds
logical; and (2) I’m not that knowledgeable on ERISA.  Questions:  Is
anyone aware of a precedent that allows a benefit governed by ERISA to be
re-directed to sole beneficiary’s SNT; and/or (2) name(s) of attorney who
might be willing to discuss a referral to them to move this forward in
Federal Court if the client is willing?  If this was the former scenario,
I would be comfortable representing the client, but the latter scenario
requires more competent representation than I can provide in that
jurisdiction.

 

Thanks,

 

Nancy J Lee

Attorney at Law

1011 E Main, Ste 449

Puyallup, WA  98372

Phone 253-904-8612

Fax 253-904-8736

 

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