[WSBAPT] Deferral of Special Needs Trust in Trust provisions

[Valerie Ohlstrom]

Please answer to the list. Thank you.

 

Very Truly Yours,

 

Val

 

Valerie O. Ohlstrom

 

Ohlstrom Law Office

 <mailto:vohlstrom at comcast.net> valerie at ohlstromlaw.com

 <http://www.ohlstromlaw.com/> www.ohlstromlaw.com

(425) 881-5251

 

 

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From: wsbapt-bounces at lists.wsbarppt.com
[mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Eric Nelsen
Sent: Tuesday, November 24, 2015 9:37 AM
To: WSBA Probate & Trust listserve (wsbapt at lists.wsbarppt.com)
Subject: [WSBAPT] Deferral of Special Needs Trust in Trust provisions

 

I had a thought while working on another matter, that there are situations
where an estate planning client might want to provide for a trust for
someone - grandchild, for example - but does not know whether that
beneficiary might at some point need government benefits, and a special
needs trust would be appropriate.

 

What do y'all think about having an option for a Trustee to fund a special
needs trust and terminate the ordinary trust early? Something like:

 

If the Trustee determines, in Trustee's sole and absolute discretion, that X
qualifies or could qualify for government benefits but for the benefits
provided under this trust, then Trustee may retain counsel to create a
special needs trust for X's sole benefit during his/her life and having
remainder interest provisions identical to this current trust, and having
trust purposes and distribution instructions that would allow X to qualify
for such government benefits, and upon creation of such special needs trust
may terminate this Trust and transfer all remaining assets into such special
needs trust.

 

Would this work? Assuming the special needs trust had the appropriate
provisions, I think this could change an ordinary trust into a
non-self-settled special needs trust if it becomes necessary.

 

Sincerely,

 

Eric

 

Eric C. Nelsen

SAYRE LAW OFFICES, PLLC

1320 University St

Seattle WA  98101-2837

phone 206-625-0092

fax 206-625-9040

 

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