[WSBAPT] d4a Trust & Section 8 Housing - Resource Recommendation?

[delp at whidbey.net]

Hello David: 

 

I just wanted to note one pitfall I experienced in a similar case back in 2016.  (I have not researched this issue since that time, so this may be out-of-date.)  In my client’s case, the local housing authority reduced the client’s Section 8 housing voucher during their annual benefit review because the housing authority viewed distributions from the client’s d4a trust to third parties for the payment of utilities as income.   The housing authority reversed its position and restored the section 8 voucher after reviewing DeCambre v. Brookline Housing Authority.  Sean Bleck’s 2016 article was very helpful as well.  

 

Good luck,

Margaret

--

Law Office of Margaret Delp

Mailing address:

PO Box 292

Langley, WA 98260

Physical Address:

2815 Howard Road, Second Floor

Langley, WA 98260

Telephone: 360-579-4530

 

 

 

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of David Faber
Sent: Monday, August 13, 2018 11:53 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] d4a Trust & Section 8 Housing - Resource Recommendation?

 

Client received a settlement of about $50k, spent a bit, and then received a question from state authorities about whether she had established a special needs trust. In the past, I've utilized a d4a structure to deal with a windfall like this (also, historically I've only made SNTs for inheritance) but this is the first time my client has been on section 8 vouchers.

 

I've reviewed a series of materials that I've been able to find, but all of them appear well out of date (specifically, they all have referred to a 2% passbook rate but I see reports from a few years ago that the rate was reduced to .06%; plus I know that there have been other updates to the rules regarding d4a trusts and Section 8 since then, such as whether distributions are imputed as income). 

 

I'm looking for an up-to-date resource that I can use to figure out the current pitfalls for a section 8 recipient when establishing and funding a SNT, and for providing guidance to a trustee (including, perhaps, a relatively recent CLE that properly discusses the state of the law here in WA). Does anyone know of such a resource? Alternatively, is anyone willing to let me pick their brain about this topic so that I can be sure to avoid causing my client to be booted out of their house?




Best,

David J. Faber

Faber Feinson PLLC

210 Polk Street, Suite 1

Port Townsend, WA 98368
(360) 379-4110

 

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