[WSBAPT] How should $38k put in IP's bank account be handled? Can special needs trust be used for PAST financial support?

[Andrekita Silva]

  Law Office of
F.ANDREKITA SILVA
_______________________________________________________  
                                                             
April 10, 2022
 
List serve,
 
Is this $38K deposited to IP’s account a gift?   Is it still regarding  
as SSI income? Does it matter?
 
Background: When IP turned 18, Mom applied for SSI benefits and  
petitioned for guardianship of disabled IP. Mom was appointed and  
began compensating herself (with court approval) for funds allegedly  
spent on behalf of IP ($9-10K) a year.
However, parents had separated 3 years prior, IP lived with Dad, not Mom. 
 
Dad learns of guardianship in 2019 during divorce proceeding- Dad says  
Mom forged his signature on Notice of Standby Guardian. He claims he,  
not Mom, should be receiving compensation as IP lives with him and he  
is sole source of financial support.
 
Agreed Divorce decree in 11/2020 says parties must resolve  
guardianship issue in guardianship proceeding. Guardian does nothing,  
instead, continues submitting accountings alleging IP lives with her.  
Mom claims and court continues to approve compensation to Mom of  
$9K-10K a year.
 
Father tries to resolve informally. No cooperation, Mom alleges  
everything properly done. Father finally files a civil action/  
Petition to Remove Guardian, and Claim for damages (asks that Mom be  
disgorged and Dad reimbursed, etc.)  He also submits a copy of civil  
action to the guardianship court.  Informally, Mom claims she was  
holding funds in her personal account not for herself, but for IP, so  
that he would not lose his SSI benefits.   

Mom notes emergency motion to resign as guardian. Instead of keeping  
the funds in her personal account for a court determination, the day  
before review hearing, Mom deposits $38K back into IP’s bank account  
(IP’s SSI funds for 4.5 years).   At review hearing, Mom is removed  
and Dad appointed as Guardian.

A GAL also appointed to indicate if accounting proper and if a  
professional guardian, instead of a parent, should be appointed.  GAL  
says “put those in special needs trust right away.”  (so that IP  
doesn’t lose SSI benefits.)
 
Had Mom kept the funds in her personal account where they had been  
since she began compensating herself, she could have been disgorged  
and father compensated with the funds she held. But now, they are in  
IP's account.
 
CAN A SPECIAL NEEDS FUND PROVIDE THAT FUNDS CAN BE USED FOR  
COMPENSATION OF /PAST FINANCIAL SUPPORT?/ 
When Mom put $38K back in IP’s account, were they a gift to IP, as  
opposed to SSI benefits?  
I assume these funds must be reported to SSA/ SSI as a gift received,  
and to advise that  IP has bank account balance in excess of $2k?
 
Any suggestions on how to handle these funds sitting in IP’s bank account?
 
 
andrekita
Law Office of F. Andrekita Silva
1325 Fourth Avenue, Suite 2000
Seattle, Washington 98101
206-224-8288
www.seattle-silvalaw.com
 

 

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