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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>I’ve only had to address one of these and the surviving spouse was shocked to learn that he had to go to his eldest son (trustee) to get money all of the time. He thought he and his deceased wife were cleverly “avoiding the Medicaid problem” (btw, they had an estate over $2m). He was flabbergasted to learn that he had handed control of his wealth over to his eldest son. He was equally an unhappy camper when I suggested that he might have to go to all of his children (the beneficiaries of the trust) to sign a TEDRA agreement to unring the bell and terminate the trust.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:white'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>From:</span></b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'> wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com] <b>On Behalf Of </b>Jim Doran<br><b>Sent:</b> Tuesday, March 8, 2016 9:19 AM<br><b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br><b>Subject:</b> Re: [WSBARP] Special Needs Trusts<o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p><div><div><div><p class=MsoNormal style='margin-bottom:12.0pt'>Well, in an irrevocable special needs trust the beneficiaries do receive benefits, as allowed in the Trust, but this is at the discretion of the Trustee and cannot be demanded by the beneficiary. That is what protects the corpus.<o:p></o:p></p></div><p class=MsoNormal style='margin-bottom:12.0pt'>The ultimate beneficiaries, once the Trustors die, will be one or more of the surviving children.<o:p></o:p></p></div><p class=MsoNormal>I thought that as long as the beneficiaries cannot demand and get the assets, the assets are protected from the Medicaid spend-down provisions. No????<o:p></o:p></p></div><div><p class=MsoNormal><br clear=all><o:p></o:p></p><div><div><div><div><div><div><div><div><p class=MsoNormal>James R. Doran<o:p></o:p></p></div><p class=MsoNormal>Attorney at Law<o:p></o:p></p></div><p class=MsoNormal>100 E. Pine Street - Suite 205<o:p></o:p></p></div><p class=MsoNormal>Bellingham, WA 98225<br>(360)393-9506<o:p></o:p></p></div><p class=MsoNormal><a href="mailto:jim@doranlegal.com" target="_blank">jim@doranlegal.com</a><o:p></o:p></p></div><p class=MsoNormal><a href="http://www.doranlegal.com" target="_blank">www.doranlegal.com</a><o:p></o:p></p></div></div></div><p class=MsoNormal><o:p> </o:p></p><div><p class=MsoNormal>On Tue, Mar 8, 2016 at 8:54 AM, Ronald St. Hilaire <<a href="mailto:rfs@licbs.com" target="_blank">rfs@licbs.com</a>> wrote:<o:p></o:p></p><blockquote style='border:none;border-left:solid #CCCCCC 1.0pt;padding:0in 0in 0in 6.0pt;margin-left:4.8pt;margin-right:0in'><div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#002060'>If the clients (man and wife in your scenario) will be beneficiaries of the trust, then it is an available resource for Medicaid spend down purposes. See WAC 182-516-0100.</span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#002060'> </span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#002060'> </span><o:p></o:p></p><div><div><div class=MsoNormal><span style='font-family:"Calibri",sans-serif;color:#002060'><hr size=2 width="62%" noshade style='color:#000066' align=left></span></div></div></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><b><i><span style='font-size:11.0pt;font-family:"Cambria",serif;color:#000066'>Ronald F. St. Hilaire</span></i></b><b><span style='font-family:"Cambria",serif;color:#000066'> · </span></b><span style='font-size:10.0pt;font-family:"Cambria",serif;color:#000066'>Attorney at Law</span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:10.0pt;font-family:"Cambria",serif;color:#000066'>Liebler, Connor, Berry & St. Hilaire</span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:10.0pt;font-family:"Cambria",serif;color:#000066'>1141 N. Edison, Suite C · Kennewick, WA 99336</span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:10.0pt;font-family:"Cambria",serif;color:#000066'><a href="tel:%28509%29%20735-3581" target="_blank">(509) 735-3581</a> office · <a href="tel:%28509%29%20735-3585" target="_blank">(509) 735-3585</a> fax</span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#002060'><a href="mailto:rfs@licbs.com" target="_blank"><span style='font-size:10.0pt;font-family:"Cambria",serif;color:#000066'>rfs@licbs.com</span></a></span><span style='font-size:10.0pt;font-family:"Cambria",serif;color:#000066'> · </span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#002060'><a href="http://www.bentonfranklinlaw.com" target="_blank"><span style='font-size:10.0pt;font-family:"Cambria",serif;color:#000066'>www.bentonfranklinlaw.com</span></a></span><span style='font-size:10.0pt;font-family:"Cambria",serif;color:#000066'> </span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><b><span style='font-family:"Cambria",serif;color:#002060'><img border=0 width=272 height=94 id="_x0000_i1026" src="cid:image001.jpg@01D179E6.D1E79870" alt=lcbs.gif></span></b><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#002060'> </span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><b><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif'>From:</span></b><span style='font-size:10.0pt;font-family:"Tahoma",sans-serif'> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com" target="_blank">wsbarp-bounces@lists.wsbarppt.com</a> [mailto:<a href="mailto:wsbarp-bounces@lists.wsbarppt.com" target="_blank">wsbarp-bounces@lists.wsbarppt.com</a>] <b>On Behalf Of </b>Jim Doran<br><b>Sent:</b> Tuesday, March 08, 2016 7:25 AM<br><b>To:</b> WSBA Real Property Listserv<br><b>Subject:</b> [WSBARP] Special Needs Trusts</span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><div><div><div><div><div><div><div><div><p class=MsoNormal style='mso-margin-top-alt:auto;margin-bottom:12.0pt'>Hello Trust Attorneys:<o:p></o:p></p></div><p class=MsoNormal style='mso-margin-top-alt:auto;margin-bottom:12.0pt'>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.<o:p></o:p></p></div><p class=MsoNormal style='mso-margin-top-alt:auto;margin-bottom:12.0pt'>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. <o:p></o:p></p></div><p class=MsoNormal style='mso-margin-top-alt:auto;margin-bottom:12.0pt'>Of course the hard part if for them to actually "irrevocably" transfer the assets into the Trust and to "trust" the Trustee. <o:p></o:p></p></div><p class=MsoNormal style='mso-margin-top-alt:auto;margin-bottom:12.0pt'>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.<o:p></o:p></p></div><p class=MsoNormal style='mso-margin-top-alt:auto;margin-bottom:12.0pt'>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.<o:p></o:p></p></div><p class=MsoNormal style='mso-margin-top-alt:auto;margin-bottom:12.0pt'>AmI on the right tract here?<o:p></o:p></p></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>Thank you.<o:p></o:p></p><div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <br clear=all><o:p></o:p></p><div><div><div><div><div><div><div><div><div><div><div><div><div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>James R. Doran<o:p></o:p></p></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>Attorney at Law<o:p></o:p></p></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>100 E. Pine Street - Suite 205<o:p></o:p></p></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>Bellingham, WA 98225<br><a href="tel:%28360%29393-9506" target="_blank">(360)393-9506</a><o:p></o:p></p></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><a href="mailto:jim@doranlegal.com" target="_blank">jim@doranlegal.com</a><o:p></o:p></p></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><a href="http://www.doranlegal.com" target="_blank">www.doranlegal.com</a><o:p></o:p></p></div></div></div></div></div></div></div></div></div></div></div></div></div></div><p class=MsoNormal><br>_______________________________________________<br>WSBARP mailing list<br><a href="mailto:WSBARP@lists.wsbarppt.com">WSBARP@lists.wsbarppt.com</a><br><a href="http://mailman.fsr.com/mailman/listinfo/wsbarp" target="_blank">http://mailman.fsr.com/mailman/listinfo/wsbarp</a><o:p></o:p></p></blockquote></div><p class=MsoNormal><o:p> </o:p></p></div></div></body></html>