[WSBAPT] Beneficiary On State Benefits - No Special Needs Trust

Thu Jul 28 09:11:33 PDT 2022

Brent:

I have relied on In re Riddell a few times to do exactly what you are trying
to accomplish – convert an outright testamentary distribution into a
distribution 

===================

Jones Butler Dolan, PS

www.jbdolan.com <http://www.jbdolan.com> 

www.jonesbutlerdolan.com <http://www.jonesbutlerdolan.com> 

Stanwood

P.O. Box 458

10027 - 269th Place NW (SR 532)

Stanwood, WA 98292

Telephone: 360-629-3833

Facsimile: 360-629-6253

to a testamentary SNT, supported by a court order.

Jim Dol;an

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com>
On Behalf Of Angela Macey-Cushman
Sent: Wednesday, July 27, 2022 6:44 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Beneficiary On State Benefits - No Special Needs Trust

Hi Brent,

Nick is right---this would need to be a First-Party SNT with payback
language.  The beneficiary (or their legal representative, or certain family
members) could establish the trust, but not the estate.  If the beneficiary
is incapacitated, the GAL should be involved at this point and SPR 98.16W
will apply. 

Sometimes the beneficiary will direct the PR to distribute their share
directly to the new trust, but I don’t believe a TEDRA is necessary for
that.  

There could be transfer penalties if the beneficiary is over 64.  So, the
estate should keep this in mind if the beneficiary is nearing this age.

Sometimes a trust is not needed.  It depends on the benefits, the amount,
and the spend-down options.  And also what the beneficiary wants to do,
frankly.

And, if it is a small amount (which sounds like it might be the case), a
pooled-asset trust is also a good option.  Lifetime Advocacy Plus and the
PACT Trust are good places to start. or the DD Endowment Trust if the
beneficiary has developmental or intellectual disabilities.  

I’m happy to talk more, just give me a call.   

-Angela

Angela Macey-Cushman

Attorney, Shareholder

Somers Tamblyn Isenhour Bleck PLLC

701 Pike Street, Suite 1510, Seattle, WA 98101    T 206.340.2200    

angela at stiblaw.com <mailto:angela at stiblaw.com>     <http://stiblaw.com/>
http://stiblaw.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 Nick Pleasants
Sent: Wednesday, July 27, 2022 6:03 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com
<mailto:wsbapt at lists.wsbarppt.com> >
Subject: Re: [WSBAPT] Beneficiary On State Benefits - No Special Needs Trust

[External] 

You could potentially create a Special Needs Trust for the beneficiary, but
then I believe it would have to be a First-Party Trust with state payback
under 42 USC § 1396p(d)(4)(A). 

If the estate is as modest as you say, perhaps the better route is to find
ways to spend down on exempt assets, e.g. buy them a car.

One of our Medicaid gurus could advise on this. I would give
Sean/Barbara/Angela at STIB a call.

Best, 

Nick

Nicholas Pleasants | Shareholder 

11225 SE 6th Street | Suite 100 | Bellevue, WA 98004
Main: (425) 455-3900 | Fax: (425) 455-9201 | E-mail:
<mailto:npleasants at ohswlaw.com> npleasants at ohswlaw.com 

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From: wsbapt-bounces at lists.wsbarppt.com
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<wsbapt-bounces at lists.wsbarppt.com
<mailto:wsbapt-bounces at lists.wsbarppt.com> > On Behalf Of Brent
Williams-Ruth
Sent: Wednesday, July 27, 2022 12:03 PM
To: WSBA Probate & Trust Listserv <WSBAPT at lists.wsbarppt.com
<mailto:WSBAPT at lists.wsbarppt.com> >
Subject: [WSBAPT] Beneficiary On State Benefits - No Special Needs Trust

Brain Trust - 

I have a beneficiary of an estate (rather modest) that is on state benefits.
The Will was not written for a Special Needs Trust. 

Would this be a good situation for a TEDRA where the adjustment is simply
changing from the named beneficiary to a Special Needs Trust?

Appreciate any insights. 

Brent Williams-Ruth (pronouns: he/him)
Attorney-At-Law

Law Offices of Brent Williams-Ruth, a division of BWR Consulting, PLLC

Physical Address: 500 S 336th Street, Suite 214; Federal Way, WA 98003

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