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<p class="MsoNormal">I had a thought while working on another matter, that there are situations where an estate planning client might want to provide for a trust for someone – grandchild, for example – but does not know whether that beneficiary might at some
point need government benefits, and a special needs trust would be appropriate.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">What do y'all think about having an option for a Trustee to fund a special needs trust and terminate the ordinary trust early? Something like:<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">If the Trustee determines, in Trustee's sole and absolute discretion, that X qualifies or could qualify for government benefits but for the benefits provided under this trust, then Trustee may retain counsel to create a special needs trust
for X's sole benefit during his/her life and having remainder interest provisions identical to this current trust, and having trust purposes and distribution instructions that would allow X to qualify for such government benefits, and upon creation of such
special needs trust may terminate this Trust and transfer all remaining assets into such special needs trust.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Would this work? Assuming the special needs trust had the appropriate provisions, I think this could change an ordinary trust into a non-self-settled special needs trust if it becomes necessary.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:12.0pt">Sincerely,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt">Eric<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt">Eric C. Nelsen<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt">SAYRE LAW OFFICES, PLLC<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt">1320 University St<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt">Seattle WA 98101-2837<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt">phone 206-625-0092<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt">fax 206-625-9040<o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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