[WSBAPT] Special needs trust

[Marcus Fry]

Kristina:
Just briefly to respond to give you some food for thought.

The pros of setting up a trust right now are as follows:

1.       Allows for immediate gifts from different parties.

2.       Allows for the trustors to see how a special needs trust operates and whether this is something they want after they pass or whether they wish to tweak it (assuming it is revocable by trustors)

The cons:

1.       Are there sufficient assets to operate a trust right now because if not doesn’t make much sense if very little is going into it

2.       Possibly need a separate tax identification and to file a trust tax return unless the trust is drafted so that the trustors are responsible for the taxes.

As far as Medicaid payback, that is a special type of intervivos trust and it only comes into play when the beneficiary is using his/her assets to fund an intervivos trust.  Your question is looking at funding a 3rd party special needs trust, whether during life or at death.

Marcus J. Fry
Lyon, Weigand & Gustafson, P.S.
P.O. Box 1689
Yakima, Washington  98907
Telephone:  (509) 248-7220
Facsimile:  (509) 575-1883

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From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Kristina Driessen
Sent: Monday, December 11, 2017 1:26 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] Special needs trust


Good Afternoon:

I am looking for the pros v. cons on establishing a special needs trust in a will or just creating one for the individual outright. In either scenario the sums would come from family members.

In the will it establishes a special needs trust if he is on Medicaid [which he now is]. It dictates that if he predeceases the testator that the sums will pass to others.

I seem to recall that if you set up a special needs trust during your lifetime that you have to name the state as the alternate beneficiary.  I could be mixing that up.

Aside from the obvious, [having benefit of the trust now] what are the pros and cons of now or later?


Kristina A. Driessen
Ryan & Driessen
Attorneys at Law
16 A Street SE
Auburn, WA. 98002
(253) 939-0811
(253) 939-0471 fax
kristina at rdattys.comcastbiz.net<mailto:kristina at rdattys.comcastbiz.net>

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