[WSBAPT] Special Needs Trust & allowable expenses

[Krista MacLaren]

Jim,

I’m certainly no expert on this, but if the remodeling is for the purpose of making the home more appropriate based on the specific disabilities of the sister, then I think it makes perfect sense to spend trust funds on it, particularly when the remainder beneficiaries are chipping in.  If the house as it is cannot adequately accommodate the disabled sister, then she is not getting the benefit of the house.  When the trust was written, the point was presumably to give her a benefit of a place to live that met her needs.   I would feel comfortable with this expenditure, but I think there should be some good documentation about what isn’t working for the sister and why, and how the remodel will make it work better.

Krista J. MacLaren
Attorney at Law
Northgate Executive Center II
9725 3rd Ave NE, Suite 600
Seattle, WA 98115
(206)523-6116
kjm.inc at mac.com <mailto:kjm.inc at mac.com>

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> On Jul 26, 2017, at 11:50 AM, Jim Doran <jim at doranlegal.com> wrote:
> 
> AGAIN:  Any one comment on this???
> 
> My client is a Trustee under a SNT for a disabled sibling, his sister.  The SNT is not particularly well written so there is not much guidance as to what the trust funds can be used for on behalf of the beneficiary sibling.  The disabled sister has a life estate in the family home (parents are deceased).  The Trustee wants to spend $5,000 from the Special Needs Trust to help with remodeling the home where the disabled sister lives. The other siblings, the eventual owners after the expiration of the life estate, will contribute $15,000 towards the remodel.  
> 
> Is it appropriate for the SNT to contribute the funds to the remodel of the house occupied under a life estate by the beneficiary of the SNT?
> 
> Jim Doran
> 
> James R. Doran
> Attorney at Law
> 100 E. Pine Street -  Suite 205
> Bellingham, WA 98225
> (360)393-9506
> jim at doranlegal.com <mailto:jim at doranlegal.com>
> www.doranlegal.com <http://www.doranlegal.com/>
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