[WSBARP] Special Needs Trusts

[Jim Doran]

Hello Trust Attorneys:

I have done many Special Needs Trusts for clients with "special needs",
usually diabilities of some sort.  the purpose of the Trust is to give some
assistance to the beneficiary but to not violate or avoid any of their
public assistance benefits.  That's pretty simple.

Now I have a client, man and wife, asking me to do a similar Trust to
protect their assets from the medicaid spend-down provisions.  I have
thought about it for a while and can't see why the same basic format
wouldn't work for that purpose.

Of course the hard part if for them to actually "irrevocably" transfer the
assets into the Trust and to "trust" the Trustee.

It would seem to me that the Trustee would have discretion to spend Trust
assets/money for the benefit of the beneficiaries without much restriction
until one of them is receiving medical treatment or other care that could
be paid by Medicaid.  The Trustee would have to be careful not to have
assets in the hands of the clients that are valued at more than the
Medicaid allowance.

It would also seem that the Trustee would not be an institutional trustee
but rather someone close to the clients whom they trust.  Same with
Successor Trustee.

AmI on the right tract here?

Thank you.

James R. Doran
Attorney at Law
100 E. Pine Street -  Suite 205
Bellingham, WA 98225
(360)393-9506
jim at doranlegal.com
www.doranlegal.com
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