<div dir="ltr">I'm dealing with a similar issue right now and figure it's better to continue this old thread rather than start a new one, but the issues here are a bit more complex. Hopefully someone can help me address the issues present:<div><br></div><div>(1) Mom is the surviving trustor on a trust that impliedly became irrevocable on her husband's passing (the Trust only provides for power to revoke during the joint lifetimes of the Trustors). The only asset of the trust is $180k in cash held in a checking account (screwy, yes, but thems the reality of the situation). The Trust does not currently have a tax ID number, so presumably the bank considers it revocable still, if that is relevant to any potential avenues in addressing this situation...</div><div><br></div><div>(2) The marriage was a blended family and there are step-children involved.</div><div><br></div><div>(3) Mom is aged and wheelchair bound. She lives with daughter, who is named to become co-trustee with one step-child upon mom being rendered incompetent or upon death. Mom is still legally competent to act, however, and is still serving as trustee.</div><div><br></div><div>(4) Mom wants to pay daughter for room and board (including home care, because daughter quit her job to help mom).</div><div><br></div><div>(5) Mom and daughter are both concerned that mom will eventually require Medicaid, and so the five-year lookback is weighing heavily on this situation.</div><div><br></div><div>As I see it, there are a slew of complexities here that really orbit around two situations (1) how to safely make payments to daughter and (2) how to do it in such a way as to not disqualify mom from medicaid when her assets have been consumed. Here's where I'm at right now:</div><div><br></div><div>(A) If mom pays daughter, step-siblings may cry foul, so I am thinking that a TEDRA Agreement might be the best option to establish an agreement between family members for payment to daughter laying out exactly how much daughter is going to be paid from the Trust.</div><div><br></div><div>(B) That gets into a question about whether such payments would then be classified as payments to an employee of the Trust/Mom? And what about income taxes/social security/medicare contributions for Daughter? My thought is we could 1099 the Daughter and she would just have to report the earnings on her tax return, correct? Anything that we could reasonably exclude?</div><div><br></div><div>(C) Provided we can get over the potential family stumbling blocks and get a TEDRA Agreement in place, and the tax questions can be settled effectively, we have the Medicaid question. Is there a method of ensuring that these payments to Daughter would not be seen by Medicaid as a gift or otherwise as a disqualifying event? Do you think having a rental agreement and some sort of 1099 paper trail would be enough?</div><div><br></div><div>Any and all thoughts are much appreciated, including noting things that I'm potentially missing.</div><div class="gmail_extra"><br clear="all"><div><div class="gmail_signature" data-smartmail="gmail_signature"><div dir="ltr"><div style="font-family:arial;font-size:small">Best,</div><div style="font-family:arial;font-size:small">David J. Faber</div><div style="font-family:arial;font-size:small">Faber Feinson PLLC</div><div style="font-family:arial;font-size:small">210 Polk Street, Suite 1</div><div style="font-family:arial;font-size:small">Port Townsend, WA 98368<br>(360) 379-4110</div><div style="font-family:arial;font-size:small"><br></div><div style="font-family:arial;font-size:small"><span style="font-family:Helvetica">*** NOTICE: ATTORNEY CLIENT COMMUNICATION - PRIVILEGED & CONFIDENTIAL. This communication may contain privileged or other confidential information. If you are not the intended recipient, or believe that you have received this communication in error, please do not print, copy, retransmit, disseminate, or otherwise use the information. Also, please indicate to the sender that you have received this communication in error, and destroy the copy you received.***</span></div></div></div></div>
<br><div class="gmail_quote">On Thu, Apr 7, 2016 at 11:09 AM, Sarah Jael Dion <span dir="ltr"><<a href="mailto:sarah@dionlaw.com" target="_blank">sarah@dionlaw.com</a>></span> wrote:<br><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex"><div dir="auto"><div></div><div>Thanks all- I appreciate everyone's insight on this!</div><span class="HOEnZb"><font color="#888888"><div><br></div><div>Sarah Dion</div></font></span><div><div class="h5"><div><br>On Apr 7, 2016, at 9:33 AM, Marcus Fry <<a href="mailto:mfry@lyon-law.com" target="_blank">mfry@lyon-law.com</a>> wrote:<br><br></div><blockquote type="cite"><div>
<div class="m_-1324756375938738465WordSection1">
<p class="MsoNormal"><a name="m_-1324756375938738465__GoBack"></a><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1f497d">I wouldn’t bother with TEDRA. RCW 11.94 has a mechanism and so do the new POA Act to obtain court approval of the proposed act. I would
definitely get court approval unless the POA has an alternate POA, then the current POA could decline to act with regard to the particular transaction, i.e., negotiation and execution of room and board agreement, and the alternate POA could sign the agreement.<u></u><u></u></span></p>
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<p class="MsoNormal" style="text-align:justify"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#1f497d">Marcus J. Fry<u></u><u></u></span></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""> <a href="mailto:wsbapt-bounces@lists.wsbarppt.com" target="_blank">wsbapt-bounces@lists.wsbarppt.<wbr>com</a> [<a href="mailto:wsbapt-bounces@lists.wsbarppt.com" target="_blank">mailto:wsbapt-bounces@lists.<wbr>wsbarppt.com</a>]
<b>On Behalf Of </b>George Edensword-Breck<br>
<b>Sent:</b> Thursday, April 07, 2016 8:57 AM<br>
<b>To:</b> WSBA Probate & Trust Listserv<br>
<b>Subject:</b> Re: [WSBAPT] POA question<u></u><u></u></span></p>
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</div>
<p class="MsoNormal"><u></u> <u></u></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1f497d">You don’t indicate what other relatives are in the picture, but whether there are any or not, this seems like a good TEDRA action situation..
<u></u><u></u></span></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">
<a href="mailto:wsbapt-bounces@lists.wsbarppt.com" target="_blank">wsbapt-bounces@lists.wsbarppt.<wbr>com</a> [<a href="mailto:wsbapt-bounces@lists.wsbarppt.com" target="_blank">mailto:wsbapt-bounces@lists.<wbr>wsbarppt.com</a>]
<b>On Behalf Of </b>Sarah Jael Dion<br>
<b>Sent:</b> Wednesday, April 06, 2016 2:32 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv<br>
<b>Subject:</b> [WSBAPT] POA question<u></u><u></u></span></p>
</div>
</div>
<p class="MsoNormal"><u></u> <u></u></p>
<p class="MsoNormal">Hello-<u></u><u></u></p>
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<p class="MsoNormal"><u></u> <u></u></p>
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<p class="MsoNormal">Looking for practical, as well as legal, input on a situation. <u></u><u></u></p>
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<p class="MsoNormal">Acquaintance is POA for her incompetent stepfather. Acquaintance is moving into a larger home, which has extra room, and would like to move her stepfather in so he can be in closer contact with the family. She plans to charge him rent,
but is nervous about doing so, because she would be writing the rent checks to herself. <u></u><u></u></p>
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<p class="MsoNormal"><u></u> <u></u></p>
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<p class="MsoNormal">It seems to me that this must come up routinely- although it hasn’t with any of my clients. Can a family member who is the agent ethically charge rent to the person for whom she is the fiduciary? If so, what precautions are best taken? <u></u><u></u></p>
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<p class="MsoNormal"><u></u> <u></u></p>
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<p class="MsoNormal">I’d appreciate any thoughts!<u></u><u></u></p>
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<p class="MsoNormal"><u></u> <u></u></p>
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<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Helvetica","sans-serif";color:black">Sarah Jael Dion<u></u><u></u></span></p>
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<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Helvetica","sans-serif";color:black">Dion Law PLLC<span class="m_-1324756375938738465apple-tab-span"> <wbr> <wbr>
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<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Helvetica","sans-serif";color:black"><a href="tel:(206)%20550-4005" value="+12065504005" target="_blank">206-550-4005</a><u></u><u></u></span></p>
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<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Helvetica","sans-serif";color:black"><a href="mailto:sarah@dionlaw.com" target="_blank">sarah@dionlaw.com</a><u></u><u></u></span></p>
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