[WSBAPT] Deferral of Special Needs Trust in Trust provisions

[Katharine P. Bauer]

If there is a hint of SN, then I will often fund the SNT and give the
trustee the option to change distribution terms and distribute entirely ...
I believe there are fewer questions about this process than the reverse.

On Tue, Nov 24, 2015 at 10:12 AM, Valerie Ohlstrom <valerie at ohlstromlaw.com>
wrote:

> Please answer to the list. Thank you.
>
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> Very Truly Yours,
>
>
>
> Val
>
>
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> Valerie O. Ohlstrom
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> Ohlstrom Law Office
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> valerie at ohlstromlaw.com <vohlstrom at comcast.net>
>
> www.ohlstromlaw.com
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> (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.
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> 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:
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> 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.
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> 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.
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> Sincerely,
>
>
>
> Eric
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>
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> Eric C. Nelsen
>
> SAYRE LAW OFFICES, PLLC
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-- 
Katharine P. Bauer
Bauer Pitman Lifetime Legal, PLLC
1235 Fourth Ave. East, Suite 200
Olympia, Washington 98501
tel. 360.754.1976
fax. 360.943.4427

e-mail: kpb at bpblegal.com

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