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<p class="MsoNormal"><span style="color:#1F497D">Kristina:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">Just briefly to respond to give you some food for thought.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">The pros of setting up a trust right now are as follows:<o:p></o:p></span></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l0 level1 lfo1"><![if !supportLists]><span style="color:#1F497D"><span style="mso-list:Ignore">1.<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="color:#1F497D">Allows for immediate gifts from different parties.<o:p></o:p></span></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l0 level1 lfo1"><![if !supportLists]><span style="color:#1F497D"><span style="mso-list:Ignore">2.<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="color:#1F497D">Allows for the trustors to see how a special needs trust operates and whether this is something they want after they pass or whether they wish to tweak it (assuming it is revocable by trustors)<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">The cons:<o:p></o:p></span></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l1 level1 lfo2"><![if !supportLists]><span style="color:#1F497D"><span style="mso-list:Ignore">1.<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="color:#1F497D">Are there sufficient assets to operate a trust right now because if not doesn’t make much sense if very little is going into it<o:p></o:p></span></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l1 level1 lfo2"><![if !supportLists]><span style="color:#1F497D"><span style="mso-list:Ignore">2.<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="color:#1F497D">Possibly need a separate tax identification and to file a trust tax return unless the trust is drafted so that the trustors are responsible for the taxes.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">As far as Medicaid payback, that is a special type of intervivos trust and it only comes into play when the beneficiary is using his/her assets to fund an intervivos trust. Your question is looking at funding
a 3<sup>rd</sup> party special needs trust, whether during life or at death.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<div>
<p class="MsoNormal" style="text-align:justify"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D">Marcus J. Fry<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D">Lyon, Weigand & Gustafson, P.S.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D">P.O. Box 1689
<br>
Yakima, Washington 98907 <br>
Telephone: (509) 248-7220 <br>
Facsimile: (509) 575-1883 <o:p></o:p></span></p>
<p class="MsoNormal" style="text-align:justify"><b><u><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D"><o:p><span style="text-decoration:none"> </span></o:p></span></u></b></p>
<p class="MsoNormal" style="text-align:justify"><b><u><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D">NOTICES:<o:p></o:p></span></u></b></p>
<p class="MsoNormal" style="text-align:justify"><b><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D">Confidentiality:
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<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
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<div style="border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in">
<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""> wsbapt-bounces@lists.wsbarppt.com [mailto:wsbapt-bounces@lists.wsbarppt.com]
<b>On Behalf Of </b>Kristina Driessen<br>
<b>Sent:</b> Monday, December 11, 2017 1:26 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv<br>
<b>Subject:</b> Re: [WSBAPT] Special needs trust<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:black">Good Afternoon:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:black">I am looking for the pros v. cons on establishing a special needs trust in a will or just creating one for the individual outright. In either scenario the sums would come from family members.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:black">In the will it establishes a special needs trust if he is on Medicaid [which he now is]. It dictates that if he predeceases the testator that the sums will pass to others.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:black">I seem to recall that if you set up a special needs trust during your lifetime that you have to name the state as the alternate beneficiary. I could be mixing that up.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:black">Aside from the obvious, [having benefit of the trust now] what are the pros and cons of now or later?<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><i><span style="font-size:10.0pt;font-family:"Bookman Old Style","serif";color:black">Kristina A. Driessen<o:p></o:p></span></i></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Bookman Old Style","serif";color:black">Ryan & Driessen<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Bookman Old Style","serif";color:black">Attorneys at Law<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Bookman Old Style","serif";color:black">16 A Street SE<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Bookman Old Style","serif";color:black">Auburn, WA. 98002<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Bookman Old Style","serif";color:black">(253) 939-0811<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Bookman Old Style","serif";color:black">(253) 939-0471 fax<o:p></o:p></span></p>
<p class="MsoNormal"><u><span style="font-size:10.0pt;font-family:"Bookman Old Style","serif";color:black"><a href="mailto:kristina@rdattys.comcastbiz.net">kristina@rdattys.comcastbiz.net</a><o:p></o:p></span></u></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:black"><o:p> </o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><b><span style="font-size:9.0pt;color:black">CONFIDENTIALITY NOTICE</span></b><span style="font-size:9.0pt;color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:9.0pt;color:black">This transmission is confidential and is intended solely for the use of the individual named recipient. It may be protected by the attorney/client
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