[WSBAPT] Deferral of Special Needs Trust in Trust provisions

[Tom White]

I think anything you draft to allow the trustee to convert into an SNT for
an unborn grandchild might or might not work--there should really be
statutory safe-harbor language for people who want to write it into their
trust.

Someone who wanted to abuse that provision could do it without leaving the
beneficiary much recourse.  Still, any trust will fail with the wrong
Trustee, so I think the upside of some SNT contingency language probably
outweighs the downside.

On Tue, Nov 24, 2015 at 9:37 AM, Eric Nelsen <Eric at sayrelawoffices.com>
wrote:

> 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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-- 

Tom White
Attorney-At-Law
Seattle, Washington
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