<div dir="ltr"><div><div><div><div><div><font size="4">I think the idea is to not put income producing assets into the trust. However, if there are three pieces of real estate with homes, they would probably want to lease them out for income. However, lets assume that this is not an issue or we can deal with that.<br><br></font></div><font size="4">The idea is to protect the real estate from any Medicaid lien by putting the real estate into the irrevocable trust. <br><br></font></div><font size="4">The assets that are not put into the trust will have to be dealt with inter vivos or by a Will for each, H & W. It may be that the assets kept out of the trust by H & W will prevent them from qualifying for Medicaid. But that is an issue for their ongoing financial management.<br><br></font></div><font size="4">I am interested in the "life estate problem" and what the solution to that might be; a tenancy of some sort granted by the Trustee???<br><br></font></div><font size="4">Thank you.<br><br></font></div><font size="4">Jim <br></font><div><div><div><div><font size="4"> <br></font></div></div></div></div></div><div class="gmail_extra"><br clear="all"><div><div class="gmail_signature"><div dir="ltr"><div><div><div><div><div>James R. Doran<br></div>Attorney at Law<br></div>100 E. Pine Street - Suite 205<br></div>Bellingham, WA 98225<br>(360)393-9506<br></div><a href="mailto:jim@doranlegal.com" target="_blank">jim@doranlegal.com</a><br></div><a href="http://www.doranlegal.com" target="_blank">www.doranlegal.com</a><br></div></div></div>
<br><div class="gmail_quote">On Tue, Nov 17, 2015 at 11:22 AM, Martin Silver <span dir="ltr"><<a href="mailto:msilver@wolfenet.com" target="_blank">msilver@wolfenet.com</a>></span> wrote:<br><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">
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<div>One problem I see is that, all things being equal and favorable to the
grantors, the trust income tax rate is so high that income has to be distributed
out which may not be desirable. Thus, if there are income producing
assets and the grantors are reporting the income but not drawing it down (ie,
leaving it in the trust to accumulate) you have a situation where there is at a
minimum an annual gift back, and therefore, a future commingling issue. I
suppose grantors can draw it down and gift it to another family member who can
contribute it, but that is cumbersome. I suppose that the trust can also
distribute income to other named family beneficiaries who gift it to the primary
parental beneficiaries, but this too is cumbersome. </div>
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<div><b>From:</b> <a title="jim@doranlegal.com" href="mailto:jim@doranlegal.com" target="_blank">Jim Doran</a> </div>
<div><b>Sent:</b> Tuesday, November 17, 2015 10:53 AM</div>
<div><b>To:</b> <a title="wsbapt@lists.wsbarppt.com" href="mailto:wsbapt@lists.wsbarppt.com" target="_blank">WSBA Probate & Trust Listserv</a>
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<div><b>Subject:</b> Re: [WSBAPT] Trusts to Protect Assets from
Medicaid</div></div></div>
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<div>Thank you, Krista. I will get in touch with David if I do not get
much feedback here. I am sure there are lots of nuances like the "life
estate" issue that I will learn about as we go.<br><br></div>Jim <br></div>
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<div>James R. Doran<br></div>Attorney at Law<br></div>100 E. Pine Street -
Suite 205<br></div>Bellingham, WA 98225<br><a href="tel:%28360%29393-9506" value="+13603939506" target="_blank">(360)393-9506</a><br></div><a href="mailto:jim@doranlegal.com" target="_blank">jim@doranlegal.com</a><br></div><a href="http://www.doranlegal.com" target="_blank">www.doranlegal.com</a><br></div></div></div>
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<div class="gmail_quote">On Tue, Nov 17, 2015 at 10:41 AM, Krista MacLaren <span dir="ltr"><<a href="mailto:kjm.inc@mac.com" target="_blank">kjm.inc@mac.com</a>></span> wrote:<br>
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<div style="WORD-WRAP:break-word">Hi Jim,
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<div>I was just at an NBI Elder Law CLE on this topic last Friday, and one of
the very informed speakers said at some point, don’t use life estates.
Unfortunately I don’t know exactly what he was saying, because I had missed
much of the day’s speakers and wasn’t following the discussion very
well. If folks on the list don’t have the answer, you could check with
David Kazemba in Wenatchee, the speaker.</div>
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<div><span style="FONT-FAMILY:calibri;FONT-VARIANT:normal;WHITE-SPACE:normal;WORD-SPACING:0px;BORDER-COLLAPSE:separate;TEXT-TRANSFORM:none;FONT-WEIGHT:normal;COLOR:rgb(0,0,0);FONT-STYLE:normal;LETTER-SPACING:normal;LINE-HEIGHT:normal;TEXT-INDENT:0px"><span style="FONT-FAMILY:calibri;FONT-VARIANT:normal;WHITE-SPACE:normal;WORD-SPACING:0px;BORDER-COLLAPSE:separate;TEXT-TRANSFORM:none;FONT-WEIGHT:normal;COLOR:rgb(0,0,0);FONT-STYLE:normal;LETTER-SPACING:normal;LINE-HEIGHT:normal;TEXT-INDENT:0px">
<div style="WORD-WRAP:break-word"><span style="FONT-FAMILY:calibri;FONT-VARIANT:normal;WHITE-SPACE:normal;WORD-SPACING:0px;BORDER-COLLAPSE:separate;TEXT-TRANSFORM:none;FONT-WEIGHT:normal;COLOR:rgb(0,0,0);FONT-STYLE:normal;LETTER-SPACING:normal;LINE-HEIGHT:normal;TEXT-INDENT:0px">
<div style="WORD-WRAP:break-word">Krista J. MacLaren<br>Attorney at
Law<br>Northgate Executive Center II<br>9725 3rd Ave NE, Suite 600<br>Seattle,
WA 98115<br><a href="tel:%28206%29523-6116" value="+12065236116" target="_blank">(206)523-6116</a><br><a href="mailto:kjm.inc@mac.com" target="_blank">kjm.inc@mac.com</a><br><br>Please note, as with most email
providers, Mac does not encrypt email messages. Accordingly, the
confidentiality of messages sent to this address cannot be assured. This
e-mail is intended for viewing only by the individual or entity to whom its
content is addressed, and it may contain confidential or privileged
information. If you received this email in error, please honor the
privacy of the intended recipient: reply to the sender regarding the error and
delete the message. <br></div></span></div></span></span></div>
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<div>On Nov 17, 2015, at 10:22 AM, Jim Doran <<a href="mailto:jim@doranlegal.com" target="_blank">jim@DORANLEGAL.COM</a>>
wrote:</div>
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<div><font size="4">Hello Listmates:<br><br></font></div><font size="4">I know
this is a common question and I also know that there is tension in the law
regarding how and even "if" this can be done. I have a client that is
asking the question in a pretty straightforward manner. I think this
issue goes to the lack of progress in our society concerning health care and
dying.<br><br></font></div><font size="4">H & W, both in their early 70s,
want to put their significant assets, two pieces of real estate and probably
a third very valuable one that they will receive as an inheritance from
mother, into a trust to protect them from the Medicaid asset requirements
for eligibility and from the spend-down and recoupment provisions of
medicaid. I would imagine the protection from creditors in general is
also part of the concept.<br><br></font></div><font size="4">The concept is to
put the assets into an irrevocable trust that gives them a life estate in
the property they choose to live in. The trust would direct that the
remainder at the death of the second trustor would go to the children in a
typical scheme. H & W would keep some assets, such as investment
funds and some cash and regular monthly income, out of the trust to live
on. Those assets would not be protected.<br><br></font></div><font size="4">One question for them is, who will be the Trustee? This is an
irrevocable trust so you better choose wisely.<br><br></font></div><font size="4">For me, the question is whether this can be done at all and how it
can be done. I am aware of the five year look-back provisions so we
want to do this asap.<br><br></font></div><font size="4">I do have access to
the desk books and other library sources. If someone can point me in
the right direction, give me the right name for this kind of trust, or send
me a model, it would be appreciated.<br><br></font></div><font size="4">Jim
Doran</font><br>
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<div>James R. Doran<br></div>Attorney at Law<br></div>100 E. Pine Street
- Suite 205<br></div>Bellingham, WA 98225<br><a href="tel:%28360%29393-9506" value="+13603939506" target="_blank">(360)393-9506</a><br></div><a href="mailto:jim@doranlegal.com" target="_blank">jim@doranlegal.com</a><br></div><a href="http://www.doranlegal.com/" target="_blank">www.doranlegal.com</a><br></div></div></div></div></div></div></div></div></div></div></div></div>_______________________________________________<br>WSBAPT
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