[WSBAPT] SNT

[John Creahan]

This is an interesting discussion, and I agree with Heather that the choice of trustee is key.
In many ways, your clients face the same issues any parent (I am assuming) would face when establishing a trust for a potentially incapacitated or financially irresponsible beneficiary.
I would talk to the client about their thoughts on the trust’s purpose(s), and their expectations about the trustee’s role during the trust term.
What do they want the trust corpus be used for? Provide the beneficiary general financial support or do they want it preserved for emergency healthcare, or something in between.
Will the trustee be expected to check in on the beneficiary, confirm that he or she is taking meds, provide financial and moral support during hospitalization? If so, they will likely need a trustee who specializes or is at least experienced in serving in these capacities. Perhaps you already have a trustee in mind, but, if not, you may want to focus on trustee choice rather than specific trust provisions. The trustee may even be able to provide appropriate language.
Hope this helps,
John


John Creahan
john at cairn-law.com<mailto:john at cairn-law.com>
1325 4th Ave., Suite 940
Seattle, WA 98101
206-621-5848
www.cairn-law.com<http://www.cairn-law.com/>
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From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Heather deVrieze
Sent: Thursday, September 3, 2015 4:24 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] SNT

The issue I would focus on for this situation is what discretion the Trustee has, selecting a good one, who understands the disability, and the termination provisions. Often a SNT will provide for termination “when the disability ceases”. That might need to be more well defined for this beneficiary, or removed altogether.

I don’t think there is any requirement that a beneficiary of a SNT be permanently or continuously disabled. This might be similar to an alcoholic or drug addict, often times they may be just fine, but if they fall off the wagon can be very unable to handle funds. A SNT is a perfect vehicle for their needs with a trustee who understands the situation.

Heather

Heather S. de Vrieze
Attorney-at-Law
[cid:image001.jpg at 01D013C2.30F35160]
3909 California Avenue SW
Seattle, WA 98116-3705
(206)938-5500
heatherd at westseattlelaw.com<mailto:heatherd at westseattlelaw.com>
www.westseattlelaw.com<http://www.westseattlelaw.com/>

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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] On Behalf Of Jayne Gilbert
Sent: Thursday, September 03, 2015 4:02 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] SNT

Ok maybe I have misused the term SNT What I'm trying to cover is a Trust for the benefit of someone that has capacity most of the time (can be years) but has episodic events that render him incompetent. I am looking for trust provisions to address incapacity and then regaining competency

Thank you

On Thu, Sep 3, 2015 at 3:39 PM, Jim Doran <jim at doranlegal.com<mailto:jim at doranlegal.com>> wrote:
I am wondering about this question.  Maybe I am missing something.  And maybe it is because I have not faced what is actually being asked.

Anyway, the Special Needs Trusts that I do are not illness specific.  They are worded to set up the Trust and corpus for the benefit of the Beneficiary to be used for anything that does not violate the rules and regulations on any federal or state aid programs the beneficiary might be getting or to get in the future.  I have seen the SNT that recites a listing of what the Trust can be used for but the better practice, so I was taught, is to not try to list the things that the Trust can be used for but, on the other hand, to list what it can’t be used for: “anything that violates the aid the beneficiary is receiving”.

I can imagine that there could be a SNT that is not concerned with aid programs at all and that recites specific things the Trust can be used for.  Is that the version of what you are asking for?

Jim

James R. Doran
Attorney at Law
100 E. Pine Street – Suite 205
Bellingham, WA 98225
(360)393-9506<tel:%28360%29393-9506>
jim at doranlegal.com<mailto:jim at doranlegal.com>
www.doranlegal.com<http://www.doranlegal.com>

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 Jayne Gilbert
Sent: Thursday, September 3, 2015 12:06 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] SNT

Does anyone out there have provisions they might share for a SNT involving a beneficiary who is bi-polar? In this case the benef for the most part functions quite well for years, but hits some episodes for which his medicine needs to be changed or he may need to go to the hospital for a while

Thank you

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Jayne Marsh Gilbert
Gilbert and Gilbert Lawyers, PS
(360) 336-9515<tel:%28360%29%20336-9515>
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Jayne Marsh Gilbert
Gilbert and Gilbert Lawyers, PS
(360) 336-9515
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