[WSBAPT] testamentary trust for adult child

[Marcus Fry]

Krista:
In my opinion, just make the testamentary trust a SNT.  There is nothing wrong with using a SNT in this instance and providing that the trustee may make disbursements of income and/or principal even if there will be a reduction in governmental benefits.

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 Krista MacLaren
Sent: Monday, November 06, 2017 1:26 PM
To: wsba probate & trust
Subject: [WSBAPT] testamentary trust for adult child

Hi Folks,

I am preparing a will for someone with an alcoholic adult son.  In her most recent Will, she gave the house her son lives in to him outright, but put a provision in stating in the event a beneficiary under the will is receiving entitlement benefits, then his share should be held in an SNT.  He is not currently receiving entitlement benefits, but she fears he may in the future.

Now she is concerned that he may die young, and she doesn’t want that house or other cash she is leaving him to wind up going to his 11y.o. daughter, but would instead want it to go to her own daughter.  She does want him to continue to live in the house for the remainder of his life.

I am trying to decide whether a testamentary trust holding the house and cash would be the best solution.  If so, is it okay to state that the trust is for his general maintenance, but if he were receiving entitlement benefits, then it would not be for general maintenance, and the trustee would have sole discretion on distributions so as not to jeopardize the benefits (unless the assets were sufficient that beneficiary and trustee and counsel agree he could forego benefits and live comfortably off the trust)?

I appreciate your suggestions!

Krista

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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