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

[Brent Williams-Ruth]

Thank you to everyone!

The good news is that we are just starting the estate and now, as the
specific facts unfold (such as getting the inventory for the totality of
assets) will be able to be applied to the various suggestions and pathways
forward.

Once again, the list serv is worth its weight in gold!

Brent

*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*

***EFFECTIVE IMMEDIATELY** All mail sent through the USPS should be sent to
the following address: **PO BOX 3319; Federal Way, WA 98063 *

Office/Scheduling Phone: (253) 285-7751

Direct: (253) 285-7453

e-mail <Brent at Williams-RuthLaw.com> / website
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On Thu, Jul 28, 2022 at 9:44 AM Paul Burris <pburris at cmd-law.com> wrote:

> If the beneficiary is eligible and the inheritance is small, might also
> want to consider an ABLE account.
>
> On Thu, Jul 28, 2022 at 9:14 AM <jbdolan at jbdolan.com> wrote:
>
>> 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   http://stiblaw.com
>>
>>
>>
>>
>>
>> *From:* wsbapt-bounces at lists.wsbarppt.com <
>> 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>
>> *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 *
>>
>>
>>
>> [image: OseranHahnAttyatLaw 8]
>>
>>
>>
>> 11225 SE 6th Street | Suite 100 | Bellevue, WA 98004
>> Main: (425) 455-3900 | Fax: (425) 455-9201 | E-mail:
>> npleasants at ohswlaw.com
>>
>>
>>
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>>
>> *From:* wsbapt-bounces at lists.wsbarppt.com <
>> 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>
>> *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*
>>
>> ***EFFECTIVE IMMEDIATELY**** All mail sent through the USPS should be
>> sent to the following address: PO BOX 3319; Federal Way, WA 98063 *
>>
>> Office/Scheduling Phone: (253) 285-7751
>>
>> Direct: (253) 285-7453
>>
>> e-mail <Brent at Williams-RuthLaw.com> / website
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>
>
> --
>
> Paul B. Burris, J.D., AEP®, EPLS*
> Creason, Moore, Dokken & Geidl, PLLC
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