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<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">I do not practice in the area of special needs trusts, so I will not comment on that subject, but ignoring special needs, I have occasionally created trusts for people who
need some mild protection from themselves. In those situations, I would create a trust with Mother as Trustor and Daughter as Trustee, and I would include language that prevents Mother from revoking the trust and making withdrawals, but I would also include
language that would cause the trust to be treated as a grantor trust under the income tax laws. You will need to consult with someone who deals with grantor trusts to determine what language would be appropriate (there are several options). By doing so,
the trust need not file separate income tax returns, and the income can be reported on Mom’s returns.
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<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">They you would also want to consider including language that would make the assets includable in Mom’s gross estate for estate tax purposes. Even if Mom does not have sufficient
assets to cause estate taxes to become due upon her death, the estate tax language would cause the basis to get stepped up at her death. There are lots of options for language that would have that effect, but would not really enable Mom to send any money
off to Africa.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">Phil Jones<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">Philip N. Jones<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">Duffy Kekel LLP<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">900 S.W. Fifth Ave. Suite 2500<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">Portland, OR 97204<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif"><a href="mailto:pjones@duffykekel.com"><span style="color:#0563C1">pjones@duffykekel.com</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">(503) 226-1371 – office<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">(503) 853-1482 – cell<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif">(503) 226-3574 - fax<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;font-family:"Times New Roman",serif"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b>From:</b> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Jim Doran<br>
<b>Sent:</b> Tuesday, May 10, 2022 12:30 PM<br>
<b>To:</b> Real Property Section <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> [WSBAPT] What Kind of Trust<o:p></o:p></p>
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<p class="MsoNormal">This elderly client has some money that needs to be put into a Trust for her own protection. She was preyed upon by some "African Diamond Tycoon" and gave away $700,000 over the past three years. I seem to recall the term "Spendthrift
Trust" in my memory banks. Maybe we do not want to call it that but we need to accomplish the same goals. The client is willing to do this and has her daughter available to act as the trustee. This could be a very good situation for the client.<br>
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What kind of Trust to use? I have done many Special Needs Trust and I am wondering if this might be a good vehicle. The client is not receiving public benefits now, other than Social Security. But that could change. She has about $400,000 to be put into
an irrevocable trust. <br>
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Any thoughts on this, and perhaps a model, would be appreciated. <o:p></o:p></p>
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<p class="MsoNormal">Jim Doran<o:p></o:p></p>
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<p class="MsoNormal">James R. Doran<o:p></o:p></p>
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<p class="MsoNormal">Attorney at Law<o:p></o:p></p>
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<p class="MsoNormal">100 E. Pine Street - Suite 205<o:p></o:p></p>
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<p class="MsoNormal">Bellingham, WA 98225<br>
(360)393-9506<o:p></o:p></p>
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<p class="MsoNormal"><a href="mailto:jim@doranlegal.com" target="_blank">jim@doranlegal.com</a><o:p></o:p></p>
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<p class="MsoNormal"><a href="https://nam11.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.doranlegal.com%2F&data=05%7C01%7Cpjones%40duffykekel.com%7C58005b8d92a14340c3aa08da32bbf207%7C2d66ed5354fa4c2f8c4dbff1aca5479d%7C0%7C0%7C637878080061934440%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=aROkl7vx5tt0QxKsigd4NJpP%2B3rV1jDtB9JkFwGxX7A%3D&reserved=0" target="_blank">www.doranlegal.com</a><o:p></o:p></p>
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