[WSBAPT] Deferral of Special Needs Trust in Trust provisions

[Eric Nelsen]

That makes sense, but I'm thinking of the case where there is no way of knowing if SN is involved--such as someone providing in a Will for grandchildren who aren't born yet, or a beneficiary who is fine now but becomes disabled due to accident, injury, whatever.

I know, they should revise the Will as circumstances change...but I'm thinking of the cases where that's not going to happen, and trying to come up with a general provision that could take care of the possibility.

Sincerely,

Eric

Eric C. Nelsen
SAYRE LAW OFFICES, PLLC
1320 University St
Seattle WA  98101-2837
phone 206-625-0092
fax 206-625-9040



From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Katharine P. Bauer
Sent: Tuesday, November 24, 2015 11:23 AM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] Deferral of Special Needs Trust in Trust provisions

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<mailto:valerie at ohlstromlaw.com>> wrote:
Please answer to the list. Thank you.

Very Truly Yours,

Val

Valerie O. Ohlstrom

Ohlstrom Law Office
valerie at ohlstromlaw.com<mailto:vohlstrom at comcast.net>
www.ohlstromlaw.com<http://www.ohlstromlaw.com/>
(425) 881-5251<tel:%28425%29%20881-5251>


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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto: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<mailto: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<tel:206-625-0092>
fax 206-625-9040<tel:206-625-9040>


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Katharine P. Bauer
Bauer Pitman Lifetime Legal, PLLC
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