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<p class="MsoNormal">Hi Listmates,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">I have a WA client who wants to leave a life estate for her CIR partner in her will, allowing him to live in the house titled in her name after her death as long as he wishes to do so (he is to pay the home’s expenses, including the property
taxes—mortgage is paid off). She also wants to leave him a percentage of the house sale proceeds if he leaves the house before his death, at which time the house is to be sold. The problem, as I see it, is that it’s entirely likely that her partner will
need to go on Medicaid for long-term care at some point around the time he might receive the life estate and/or the proceeds. He is already in his late 60s.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Question 1:<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Would a life estate be considered a possessory interest that might disqualify her partner from receiving Medicaid benefits? It doesn’t seem like it, since if he needs long-term care most likely he would be moving out of the house anyway.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Question 2:<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">If he is already over 65 years old, could she still create a third-party special needs trust for his benefit into which to place the house sale proceeds going to him? And if so, could she simply make this provision in her will for the
creation of the SNT if needed after her death? I have worked with SNTs for people under 65, but wasn’t clear on whether they could still be created by a third party for someone over that age.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Thanks in advance!<o:p></o:p></p>
<p class="MsoNormal">Candace<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Tahoma",sans-serif;color:black">Top Ranked Law Firm for 2015 by Fortune Magazine and American Lawyer Media</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;color:black">Candace Wilkerson<b> |</b> Senior Associate</span><b><span style="font-size:10.0pt;color:red"> </span></b><b><span style="font-size:10.0pt;color:#484848">|
</span></b><span style="font-size:10.0pt;color:black">Wong Fleming </span><o:p></o:p></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;color:black">10675 Willows Road NE, Suite 250
</span><b><span style="font-size:10.0pt;color:#484848">| </span></b><span style="font-size:10.0pt;color:#484848"> </span><span style="font-size:10.0pt;color:black">Redmond, WA 98052</span><span style="font-size:10.0pt;color:#484848"><br>
</span><span style="font-size:10.0pt;color:black">Phone: 425.869.4040 </span><b><span style="font-size:10.0pt;color:#484848">|</span></b><span style="font-size:10.0pt;color:#484848">
</span><span style="font-size:10.0pt;color:black">Fax: 425.869.4050 <br>
</span><a href="mailto:cwilkerson@wongfleming.com"><span style="font-size:10.0pt;color:blue">cwilkerson@wongfleming.com</span></a><o:p></o:p></p>
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