[WSBAPT] SNT and IRAs

[Roger Hawkes]

This raises the question for me of whether a disclaimer by a Medicaid recipient is considered an asset gift when disclaimed.  Who knows that?

Roger Hawkes, WSBA # 5173
19909 Ballinger Way NE
Shoreline, WA 98155
www.hawkeslawfirm.com<http://www.hawkeslawfirm.com>
206 367 5000
Fax is 206 367 4005

From: Marcus Fry [mailto:mfry at lyon-law.com]
Sent: Wednesday, May 06, 2015 10:28 AM
To: 'WSBA Probate & Trust Listserv'
Subject: Re: [WSBAPT] SNT and IRAs

Paul:
The facts are bit confusing.  When you state non-probate assets you are not including the IRAs, correct?  You are talking about checking, savings and other accounts, correct?  If so, the problem in this situation is that H is automatically vested on death with the non-probate assets assuming he is either JTWROS or a beneficiary.  If he disclaims, that will have impact on Medicaid eligibility assuming he is either on Medicaid or will be on Medicaid in the next 5 years.  However, if the non-probate asset was just in wife's name and payable to the Estate, one-half of that asset would go to the SNT and the other one-half to H outright.  As to any non-probate asset in H's name only, one-half of that account would be disbursed to the SNT and the other half H would keep.

Of course, the above is assuming there was to CP agreement and I assume there wasn't one because W's Will had a SNT.  If there was a CP agreement, you are back in the disclaimer situation.

Marcus J. Fry
Lyon, Weigand & Gustafson, P.S.
Yakima, WA.







From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Paul Neumiller
Sent: Wednesday, May 06, 2015 9:50 AM
To: 'WSBA Probate & Trust Listserv'
Subject: Re: [WSBAPT] SNT and IRAs

Anyone??

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Paul Neumiller
Sent: Monday, May 4, 2015 12:42 PM
To: wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] SNT and IRAs

Listmates: H & W make contributions to traditional IRAs and Roth IRAs over the years.  W dies and leaves a Will with all of her assets going to a special needs trust ("SNT") for H.  There is no "Super Will" provisions in the Will for non-probate assets.  H is presumably the sole beneficiary on the non-probate assets.  H opens probate as the personal representative.  Assume that H wants to transfer as many assets as possible to the SNT.

1.       How does H, as PR, get at and transfer W's IRAs to the SNT?  Is this where a waiver would work if H is the only beneficiary listed on the savings account? What if a waiver doesn't work because there are alternative beneficiaries (adult children) on the accounts?

2.       How do Washington's community laws work here?  Shouldn't, technically, ½ of W's savings accounts go into the SNT and ½ of H's savings account go into the SNT?

All guidance appreciated.
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