[WSBAPT] Custodial Account Transferred into SNT

[Marcus Fry]

(1)    This is a first party SNT if the child's funds are used and they are the child funds because these are custodial funds, i.e., a completed gift.

(2)    Because the child is under 64 (I am assuming so since custodial accounts don't go past 25 and you are using the reference "child"), parents can establish a medicaid payback SNT.

(3)    Technically yes if WA SNT because our state does not recognize self-settled trusts for asset protection purposes.

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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From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Glenn Price
Sent: Wednesday, December 09, 2015 12:44 PM
To: WSBA Probate & Trust Listserv (wsbapt at lists.wsbarppt.com)
Subject: [WSBAPT] Custodial Account Transferred into SNT

Sorry.  My previous e-mail deleted all my contact information.

Listmates:

Parent wishes to transfer funds that are currently in a custodial account to a SNT for special needs child.

Questions:  (1)   Does this constitute a self-settled trust by the child?
        (2)    If so, will the child still qualify for benefits, with just a payback provision to the state at child's death?
                    (3)    Will the trust assets be available to any creditor of the beneficiary (excluding DSHS)?

Thank you for your insights.

GDP

Glenn D. Price, J.D.
Price & Farrington, PLLC
Attorneys and Counselors at Law
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