[WSBARP] Mechanics of Funding Special Needs Trust
Margaret Delp
delp at whidbey.net
Tue Apr 25 15:30:26 PDT 2017
Hi All:
Disabled Wife transfers her share in real property via Quit Claim Deed to
Husband in order to continue to qualify for public benefits. Then, sadly,
healthy husband dies intestate. Only asset is the real property. Under
intestacy laws, ½ of separate property goes to Wife and ½ goes to the adult
kids. Luckily, the kids want to give their share of the estate in trust to
a third-party special needs trust for the benefit of Wife (Trust 1). The
Wifes share of the estate will be going to a self-settled special needs
trust (aka d4A Trust)(Trust 2). We will be signing a TEDRA Agreement
explaining.
QUESTION Can the personal representative transfer the real property to the
two trusts in a single step (one deed). Or, is it necessary or preferable to
do this in two steps first have the personal rep. transfer the property to
the kids and then have the kids execute a second deed conveying their share
to the trustee of the third-party special needs trust? Each of the kids
will also need to file a gift tax return, correct? Any way to avoid this?
Thanks,
Margaret
--
Law Office of Margaret Delp
Mailing address:
PO Box 292
Langley, WA 98260
Physical Address:
2815 Howard Road, Second Floor
Langley, WA 98260
Telephone: 360-579-4530
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