[WSBAPT] Contingent funding of SNT?

[Claudia A Gowan]

Colleagues:

I am debating how best to approach the possibility that one or two of testator's children may need SSDI, Medicaid and other similar benefits in the future. The facts look like this:

Testators are married and fairly young. Together they have a number of children, two of whom may need assistance for disabilities in the future but it is impossible to tell now.

In the event of S1 testator's death, that share shall go to a marital trust for S2. In the event of S2's death, all of the property will go to a trust for the children.

The dilemma: what about the 2 who may need SNT provisions?

I would like to provide a direction under the trust that if either of the children may need or are on governmental benefits, the Trustee shall establish a SNT to hold such child's share(s). Basically, I would like to save the cost of the extra trust planning now, when the children are young enough that it is not at all clear that either of them will need assistance.

I am most concerned about whether or not such a directive is allowable given that the Trustee would be establishing the trust and distributing the affected child's share to the trust, rather than the trust being in place under the Will already. Any thoughts on the pros and cons of this?

Many thanks,

Claudia



Claudia A. Gowan

Claudia A. Gowan, PLLC
2101 Fourth Avenue, Suite 1900
Seattle, WA 98121
(206) 443-2733 (T)
(206) 448-1843 (F)
claudia at cagowanlaw.com<mailto:claudia at cagowanlaw.com>

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

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