[WSBAPT] [wanaela] Re: 3rd party special needs trust--intentionally defective grantor language

[John J. Sullivan]

One common way to render the SNT “defective” is to have the grantor retain the authority to swap the house out for another asset. I’ve done that. But that means inclusion in the grantor’s estate, not the beneficiary’s. 

John Sullivan

Sent from my iPhone

> On Nov 9, 2018, at 3:12 PM, Jacob Menashe <jacob at hickmanmenashe.com> wrote:
> 
> I think the question, or potential trap, will be how Medicaid will look at it from the Medicaid applicant’s perspective when the person has retained the control necessary to get estate tax inclusion. I know others and I have been wary about this but perhaps others can report they regularly have done this without a problem?
>  
> Best,
>  
> Jacob
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> From: wanaela at mycommunities.naela.org <wanaela at mycommunities.naela.org> On Behalf Of Jerrica R. Pierson Seeger
> Sent: Thursday, November 8, 2018 8:03 PM
> To: wanaela at mycommunities.naela.org; Ronda Larson <privateemail383099 at mycommunities.naela.org>; wsbapt List serve <wsbapt at lists.wsbarppt.com>; WANAELA List serve <wanaela at mycommunities.naela.org>; Elder Law Section <elder-law-section at list.wsba.org>
> Subject: [wanaela] Re: 3rd party special needs trust--intentionally defective grantor language
>  
> Give me a call in the morning and we can talk about the options?!?!
>  
> Thank you
> Jerrica
> 
> Sent from Yahoo Mail on Android
>  
> On Tue, Nov 6, 2018 at 2:40 PM, Ronda Larson
> <privateemail383099 at mycommunities.naela.org> wrote:
> Has anyone done Medicaid planning to transfer a Medicaid applicant's real estate (e.g., a rental house)  into a 3rd party special needs trust for a disabled child to live in the house (or rent it out), where you put language in the trust to get a step up in basis on the grantor's death (i.e., intentionally defective grantor trust language)? Do you see any traps for the unwary? 
>  
> Ronda Larson Kramer
> J.D., LL.M in Tax Laws, Owner
> LARSON LAW, PLLC
> Elder Law, Estate Planning
> 1700 Cooper Point Rd SW, Bldg A3
> Olympia WA 98502
> Ph: 360-259-3076
> ronda at larsonlawpllc.com
> www.larsonlawpllc.com
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> NOTICES: This message, including attachments, is confidential and may contain information protected by the attorney-client privilege or work product doctrine. If you are not the addressee, any disclosure, copying, distribution, or use of the contents of this message are prohibited. If you have received this email in error, please destroy it and notify me immediately. Any tax advice contained in this message is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the internal revenue code or (2) promoting, marketing, or recommending to others any tax-related matter(s) addressed here.
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