http://www.expertlaw.com/forums/ Issues and concerns involved in planning an estate, including drafting a will or trust. en Tue, 21 May 2013 13:42:45 GMT vBulletin 60 http://www.expertlaw.com/forums/images/misc/rss.png http://www.expertlaw.com/forums/ http://www.expertlaw.com/forums/showthread.php?t=158576&goto=newpost Sat, 18 May 2013 03:29:25 GMT My question involves estate planning in the state of: Missouri (I posted a similar question in another thread; however, that question was... My question involves estate planning in the state of: Missouri

(I posted a similar question in another thread; however, that question was regarding Medicaid Irrevocable Trusts and marital property considerations. This is specifically regarding SNTs. If this thread constitutes a duplicate thread, please take the appropriate action)

This trust will be created by me as Grantor for my mother as Beneficiary, and must comply with Missouri SNT provisions.

Trust type: Third party supplemental needs trust

Grantor: Me.

Future contributions to be made by: Any third party; specifically, my siblings. NOTE: the spouse of any married contributor will be signing a "quit claim" for anything added to the trust.

Trustees: Me and my siblings, serving two at a time from oldest to youngest (so I would be both grantor and one of the initial co-trustees)

Beneficiary: my currently physically disabled, but mentally coherent and competent, mother.

Contingent beneficiaries: my mother's children, per stirpes. We'd prefer, however, that if any of the contingent beneficiaries have trusts at the time of my mother's death, that their respective portions would pass title directly into such trusts; or, if one of the beneficiaries is disabled, that such child's share would continue in trust through providing for the creation of a sub-SNT.

Purposefully excluded/"disinherited" individuals: my father

Details: My mother and father are estranged but still married. Legal separation/divorce are not options. My mother is currently disabled and is receiving Medicaid and SSI benefits.

Goals: some of my siblings are currently unmarried and don't have children, but they do have property. They want to designate my mother as beneficiary of their property should something happen to them, but doing so would affect her "means-tested" government benefits. Further, we would like to establish a means of support for her in some way that wouldn't affect said benefits.

We want the option of adding property to the trust estate as well, such as purchasing a home for my mother to live in, or a vehicle for her to use, that is owned by the trust and will not affect her benefits. This would include the option of buying such property, to be owned by the trust, with the trust assets.

Under absolutely NO circumstances do we want our father or any other creditor (including the state) to have any right or claim to the trust estate.

Important factors/considerations:

1. My father will have no interest in/cannot claim against the trust estate, even if he survives my mother.
2. The trust cannot affect Medicaid/SSI benefits that my mother is receiving.
3. Anyone can add to the trust estate (although it is my understanding that my mother, as beneficiary, cannot do so).
4. Creditors of any kind will not be able to claim/recover from the trust estate (including Medicaid) even after my mother's death.
5. Trustee/Trust Protector has the options of a) giving more than just the supplemental needs allowance, b) giving just the supplemental needs allowance, c) not giving anything at all, d) distributing any amount to beneficiary in Trustee's sole, unreviewable discretion even if such will result in no longer being eligible for government benefits, or e) dissolving the trust and making full distribution to contingent beneficiaries if the trust estate is in danger or if the special needs beneficiary somehow recovered from the disability. (if any one or combination of these five options will defeat the purpose of the trust/is not allowable in an SNT, please indicate such when answering my questions below)
6. We must be able to designate the trust as beneficiary of any of our property for our own estate planning purposes and to avoid probate.

Questions:

1. Based on the items/information outlined above, does the trust I'm considering prevent my father from having any claim to the trust estate?
2. Can an SNT own property, such as a house or a vehicle, for the use and benefit of the beneficiary?
3. Will property owned by the trust for the use and benefit of the beneficiary affect government benefit eligibility?
4. Can property be purchased with trust assets? Such property would be owned by the trust, and would be subject to the provisions of the trust.
5. Can an SNT be named beneficiary/TOD/POD of a house, bank account, vehicle, estate, trust, etc?
6. Which of the following can an SNT's Trustee/Trust protector do without jeopardizing government benefits, causing trust assets to be a countable resource, or invalidating the trust?
a) giving more than just the supplemental needs allowance,
b) giving just the supplemental needs allowance,
c) not giving anything at all,
d) distributing any amount to beneficiary in Trustee's sole, unreviewable discretion even if doing so will result in no longer being eligible for government benefits, or
e) dissolving the trust and making full distribution to contingent beneficiaries if the trust estate is in danger or if the special needs beneficiary recovers from his/her disability.
7. Where might I find the Missouri SNT laws, specifically those addressing the effect of discretionary distributions on government benefit eligibility?
8. The contingent beneficiaries of this proposed trust are my mother's children, per stirpes.
a) Can any such child's share continue in trust under an SNT, essentially creating a subtrust, in the event that such child is also a special needs individual?
b) Or, alternatively, could a trust established for/by any such child be named beneficiary instead of the child?

Any suggestions for provisions of the trust are much appreciated, pursuant to the following:

1. Given the facts that government benefit eligibility AND my father's potential marital claim to my mother's property are major factors in formulating the trust plan, along with the goal of providing a way for us to designate my mother as a beneficiary for our property without affecting said Medicaid eligibility or allowing my father to benefit from any gifts/inheritance she receives through the trust, what options would you suggest?

Thank you!


*P.S. I understand that I need to consult an attorney, and that advice received through this website is not to be construed as a replacement for said consultation. I also understand that drafting a trust is not a DIY task, and that the process is much more complicated and involved than the questions I've asked. There are many details I have not provided, both because I don't feel like making those details public and because this post is long enough as it is. With that in mind, please don't reiterate the same. I am asking for answers, not statements as to my competence, abilities, etc, or anyone's perceived lack thereof. If I have posed questions that the reader is unable or unwilling to answer, please don't feel the need to comment solely to caution me about what I already know. :) ]]> Planning Your Estate joco http://www.expertlaw.com/forums/showthread.php?t=158576 http://www.expertlaw.com/forums/showthread.php?t=158429&goto=newpost Tue, 14 May 2013 21:52:51 GMT My question involves estate planning in the state of: PA. I am told that in PA WROS is essentially the same as TBE these days. However, my research... My question involves estate planning in the state of: PA. I am told that in PA WROS is essentially the same as TBE these days. However, my research indicates that TBE provides an extra level of asset protection not available by WROS. Are these the same in PA with regard to all aspects including asset protection or does TBE in fact provide available protection? ]]> Planning Your Estate claycourtdad http://www.expertlaw.com/forums/showthread.php?t=158429 http://www.expertlaw.com/forums/showthread.php?t=158042&goto=newpost Sat, 04 May 2013 20:58:27 GMT My question involves estate planning in the state of: California I had a living trust prepared by Legal Zoom in 2010. The house I owned at the... My question involves estate planning in the state of: California

I had a living trust prepared by Legal Zoom in 2010. The house I owned at the time was included in the trust but I did not order a real estate deed that transfers title into the trust because it was an additional $250.

That property has been sold and I am going to close on a new house in a few weeks. I asked my loan officer if I can put the new house in the name of the trust, she said to get the house in my name then get a second deed in the name of the trust. It might be possible to have it done by the title company at time of signing for a minimal fee vs paying legal zoom $250.

If I just modify my trust and list the property like my original trust will it be legit?
Does there have to be a deed in the name of the trust or have the deed transferred or get a second deed? What is the proper thing to do here?

Mike
Stockton CA ]]> Planning Your Estate tzr916 http://www.expertlaw.com/forums/showthread.php?t=158042