[WSBAPT] Ultimate Disposition of Supplemental Needs Trust Assets

[Mark Vohr]

I would be interested in hearing thoughts on this.  I could not find anything on trusts in the few places I looked, but my understanding is that if a will fails to fully distribute an estate, then the intestacy laws kick in for the property that is not effectively distributed.  I’m not sure what happens if the testamentary trust fails to say where the property goes upon termination.  Residuary clause vs. intestate distribution?

Regards,

Mark

Mark C. Vohr, Esq.
Ohana Fiduciary Corp.
Ohana Financial Services
A Washington Trust Company
Mark C. Vohr, J.D., CPG, Principal
PO Box 33710  Seattle, WA  98133
T:  (206) 782-1189 F:  (206) 782-1434
mcv at ohanafc.com      www.ohanafc.com

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of David Faber
Sent: Tuesday, October 20, 2020 3:25 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Ultimate Disposition of Supplemental Needs Trust Assets

List:

Decedent's Will created a Supplemental Needs Trust (SNT) for child (C). The Will is silent, however, regarding the disposition of any remaining assets of the SNT at the time of C's death. My presumption for how this is treated at law could go one of two ways, both of which are likely to result in the same outcome given the facts of this situation (C has no children, is unmarried, and is close to 70 years old, so is highly unlikely to ever have children), but for the sake of my practice and perhaps others who may run across this issue, I figure sending my question to the list is valuable:

When the beneficiary of a Supplemental Needs Trust dies leaving funds in the trust and where the Supplemental Needs Trust remains silent about the ultimate disposition of the remaining funds, to whom should the Trustee make final distribution? Should it be the beneficiary's heirs at law according to RCW 11.04.015 or should it be the other beneficiaries of the Decedent's Will?

Additional fact: this is not a self-settled special-needs trust/a (d)(4)(a) trust, obviously, as it was established pursuant to C's mother's Will, so it is not subject to distribution to the DSHS/State Medicaid authorities upon C's death.

Best,
David J. Faber
Faber Feinson PLLC
210 Polk Street, Suite 1
Port Townsend, WA 98368
(360) 379-4110

*** NOTICE: ATTORNEY CLIENT COMMUNICATION - PRIVILEGED & CONFIDENTIAL.  This communication may contain privileged or other confidential information. If you are not the intended recipient, or believe that you have received this communication in error, please do not print, copy, retransmit, disseminate, or otherwise use the information. Also, please indicate to the sender that you have received this communication in error, and destroy the copy you received.***
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20201020/a75de609/attachment.html>