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<p style="margin-top:0;margin-bottom:0">I need to revise my previous message. It would not be a IDGT. Rather, what I'm wondering is if anyone has
<span style="background-color: rgb(255, 255, 255);">put language in the SNT to allow a step up in basis at death. For example, in </span><span style="font-family: Calibri, Helvetica, sans-serif, EmojiFont, "Apple Color Emoji", "Segoe UI Emoji", NotoColorEmoji, "Segoe UI Symbol", "Android Emoji", EmojiSymbols; font-size: 12pt;"><span style="background-color: rgb(255, 255, 255);">Rev.
Rul. 2004-64, the IRS </span><span style="background-color: rgb(255, 255, 255);">said </span><span style="background-color: rgb(255, 255, 255);">that if </span></span><span style="font-family: Calibri, Helvetica, sans-serif, EmojiFont, "Apple Color Emoji", "Segoe UI Emoji", NotoColorEmoji, "Segoe UI Symbol", "Android Emoji", EmojiSymbols; font-size: 12pt; background-color: rgb(255, 255, 255);">the
trust instrument requires the trustee to distribute to the grantor income or trust principal in an amount sufficient to satisfy the grantor’s income tax liability, the trust assets would be includible in the grantor’s estate </span><span style="font-family: Calibri, Helvetica, sans-serif, EmojiFont, "Apple Color Emoji", "Segoe UI Emoji", NotoColorEmoji, "Segoe UI Symbol", "Android Emoji", EmojiSymbols; font-size: 12pt;"><span style="background-color: rgb(255, 255, 255);">at
death under Internal Revenue Code § 2036(a). Putting such language in the trust </span>seems like an easy way to obtain the basis step-up at death for a 3rd party special needs trust that has a house in it where the grantor is a Medicaid applicant and the
beneficiary is his disabled child. </span></p>
<p style="margin-top:0;margin-bottom:0"><span style="font-family: Calibri, Helvetica, sans-serif, EmojiFont, "Apple Color Emoji", "Segoe UI Emoji", NotoColorEmoji, "Segoe UI Symbol", "Android Emoji", EmojiSymbols; font-size: 12pt;"><br>
</span></p>
<p style="margin-top:0;margin-bottom:0"><span style="font-family: Calibri, Helvetica, sans-serif, EmojiFont, "Apple Color Emoji", "Segoe UI Emoji", NotoColorEmoji, "Segoe UI Symbol", "Android Emoji", EmojiSymbols; font-size: 12pt;">Would any of you agree?</span></p>
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<div id="divRplyFwdMsg" dir="ltr"><font face="Calibri, sans-serif" style="font-size:11pt" color="#000000"><b>From:</b> Ronda Larson Kramer<br>
<b>Sent:</b> Tuesday, November 6, 2018 2:39:54 PM<br>
<b>To:</b> wsbapt List serve; WANAELA List serve; Elder Law Section<br>
<b>Subject:</b> 3rd party special needs trust--intentionally defective grantor language</font>
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<p style="margin-top:0; margin-bottom:0">Has anyone done Medicaid planning to transfer a Medicaid applicant's real estate (e.g., a rental house) into a 3rd party special needs trust for a disabled child to live in the house (or rent it out), where you put
language in the trust to get a step up in basis on the grantor's death (i.e., intentionally defective grantor trust language)? Do you see any traps for the unwary? </p>
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<font face="Calibri,sans-serif" size="2"><span style="font-size:11pt"><font face="Brush Script MT" size="5"><span style="font-size:16pt; color:rgb(0,0,0); font-family:Arial,Helvetica,sans-serif"><b><span style="font-family:Arial,Helvetica,sans-serif; font-size:12pt">Ronda
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