[WSBAPT] [ADV] Re: Conditional RLT bequest

[Jane Bitz]

It is my understanding that DSHS will challenge any SNT that is funded in any way other than the probate of the deceased spouse's Will that contains an SNT provision for the surviving spouse.

I agree that your hypothetical funding mechanism is problematic. If the RLT distribution goes directly to a Trustee of an SNT benefitting the surviving spouse, then the Trust was "funded" by the property in the RLT and not through the Will of the deceased spouse. I think this has been litigated (through fair hearing in Washington).

I don't have all my sources at my disposal because I am working from home, but the language is in the CFRs that the assets in the SNT are not considered to be "available resources" to pay for the nursing home or other long term care of the surviving spouse IF the SNT is created in the Will of the deceased spouse for the benefit of the surviving spouse.

Jane.

Jane G. Bitz
Of Counsel
Wolff, Hislop & Crockett, PLLC
12209 E. Mission Ave, Suite 5
Spokane Valley, WA 99206-4824
(509) 927-9700 x126
FAX: (509) 777-1800

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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Cyrus Field
Sent: Thursday, April 23, 2020 10:15 AM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] [ADV] Re: Conditional RLT bequest

Hi Jane- Does the funding through probate mean you can't fund the testamentary special needs trust  with a "pour over" RLT?   I've heard that where client already has a well funded RLT, and a spouse that may need a SNT, some attorneys use a contingent bequest in RLT to trustee of testamentary SNT.  I never heard whether that actually worked and the funding issue seems like it might be a problem. Thanks, Cy


Cyrus W. Field, Attorney at Law (admitted in Washington and Oregon)
phone: 360-472-1223 Mail: POB 367, Shaw Island, WA 98286 Office: 640 Mullis St. Friday Harbor, WA
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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Jane Bitz
Sent: Wednesday, April 22, 2020 5:30 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [ADV] Re: [WSBAPT] Conditional RLT bequest

Ken:
That will work except if the Trust is being contemplated for a surviving spouse. In that case the Supplemental Needs Trust MUST be created in the Last Will of their spouse and it must be funded through the probate of that Will.
Jane.

Jane G. Bitz
Of Counsel
Wolff, Hislop & Crockett, PLLC
12209 E. Mission Ave, Suite 5
Spokane Valley, WA 99206-4824
(509) 927-9700 x126
FAX: (509) 777-1800

[image001 (4)][cid:image007.png at 01D61967.32A30A40][cid:image006.jpg at 01D61967.32A30A40]
THE CONTENTS OF THIS ELECTRONIC MAIL ARE CONFIDENTIAL AND PROTECTED BY THE ATTORNEY-CLIENT PRIVILEGE OR OTHER APPLICABLE PROTECTION.  Any review, use, distribution or disclosure by others is strictly prohibited.  If you have received this electronic mail in error, PLEASE NOTIFY ME BY E-MAIL, FAX OR TELEPHONE and PROMPTLY DELETE this electronic mail.  This mail cannot be modified without express written consent of Wolff, Hislop & Crockett, PLLC.  Thank You.

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Ken Luce
Sent: Wednesday, April 22, 2020 4:06 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] Conditional RLT bequest

Can a bequest in a RLT be conditioned such that the estate goes to the person unless they are on or in need of a federally funded program for assistance such as Medicaid and if so into a special needs trust?

Ken Luce
253-922-8724
Tacoma, Washington


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