[WSBAPT] Special Needs Trust as Testamentary Trust in a Will

[Ronda Larson Kramer]

On the other hand, if it's a testamentary third party SNT, LA+ has a trust template that would not require Medicaid repayment or giving the remainder to the pooled trust. This is the case only for third party SNTs, however, which is exactly what you're planning to draft.

Ronda Larson Kramer
J.D., LL.M. Taxation, Owner

LARSON LAW, PLLC
Elder Law, Estate Planning
P.O. Box 7337
Olympia WA 98507
Ph: 360-259-3076
ronda at larsonlawpllc.com<mailto:ronda at larsonlawpllc.com>
www.larsonlawpllc.com<http://www.larsonlawpllc.com/>

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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Mark Vohr
Sent: Monday, March 22, 2021 10:43 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Special Needs Trust as Testamentary Trust in a Will

LA plus is also a professional trustee very experienced with SNT's.  One thing to remember with respect to pooled trusts is that upon the death of the beneficiary, the balance remaining in the account (if any) may be retained by the charity establishing the pooled trust, to be used for other beneficiaries of the pooled trust. A few states have required that some or all of the trust funds remaining at the death of the beneficiary be repaid to the state Medicaid agency, but most states allow the beneficiary to elect that the charitable organization retain the balance at the beneficiary's death.  So, for a testamentary SNT, if putting into a pooled trust one might be limited as to the remainder beneficiaries.

I am not an expert on pooled trusts, by any stretch, but this is my understanding.

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<mailto:mcv at ohanafc.com>      www.ohanafc.com<http://www.ohanafc.com>

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 Roger Hawkes
Sent: Monday, March 22, 2021 10:07 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] Special Needs Trust as Testamentary Trust in a Will

LA Plus has a pooled special needs trust that works pretty well also.

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 Mark Vohr
Sent: Monday, March 22, 2021 9:45 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] Special Needs Trust as Testamentary Trust in a Will

Susan -

            Short answer, yes absolutely.  A third party funded special needs trust can be a testamentary trust.  Professional Trustees such as Ohana, PIC Trust, WE trust, and GSS and others manage these kinds of trusts all the time and have a great deal of experience doing so.

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<mailto:mcv at ohanafc.com>      www.ohanafc.com<https://urldefense.proofpoint.com/v2/url?u=http-3A__www.ohanafc.com&d=DwMFAg&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=K1mLMC1eFjwfeeMM-AC6zQ&m=H7oZ6m1Q_3xZOKW5P5dX7PjfxKOc9Yu0Uzy29hsj9_k&s=rhiZ6pct0Eox0A3UShpJ-5jeAQt8il4iw57o1U-OA_s&e=>

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 sdonahue at sdonahuelaw.com<mailto:sdonahue at sdonahuelaw.com>
Sent: Monday, March 22, 2021 9:33 AM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] Special Needs Trust as Testamentary Trust in a Will

Hello List Mates,

I've done Special Needs Trusts and I've done testamentary trusts, but I'm thinking my client needs a Special Needs Trust as a testamentary trust in her will.  She has two sons.  One has been severely disabled all his life.  The other son will take care of him upon her death.  She is not her disabled son's guardian.  He has no guardian per se.  She has been appointed by the state to handle his disability payments and that has worked well for her.  Her disabled son is in his 20s.

She wants me to draft a will, but, obviously, she can't leave anything to her disabled son.  So, I'm thinking that I could draft a Special Needs Trust in the will as a testamentary trust and make her other son the trustee.  Would this work?  Can a Special Needs Trust be a testamentary trust in a will?

Any thoughts or suggestions would be very welcomed.

Thank you,

Susan

Susan Donahue
Law Office of Susan Donahue
125 West 2nd Avenue, Suite "B"
P.O. Box 81
Twisp, WA 98856
(509) 996-5944 (phone)
(509) 362-9692 (fax)
sdonahue at sdonahuelaw.com<mailto:sdonahue at sdonahuelaw.com>

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