Presents To SNT or Not to SNT

[Pages:42]March 24, 2017

Presents

To SNT or Not to SNT

With

David Lillesand and

Travis Finchum

Materials by David Lillesand

To SNT or Not to SNT ?

roadmap of presentation

First Party Special Needs Trust (SNT) versus Third Party SNT

A practical approach to a new First Party SNT matter

Analyzing current and future public benefit opportunities

Applying a cost-benefit analysis to the alternative action plans

Living with the client's choice

First Party Special Needs Trust (SNT) versus Third Party SNT

You're asked to prepare an SNT...

Ask yourself ? whose money is it?

More definitive question:

? Who has legal authority over the funds? ? Does the person with disability already

have control of the funds directly or through a guardian?

First Party Special Needs Trust (SNT) versus Third Party SNT

Impact of answer to "whose money is it?"

The disabled individual's ... requires a first party SNT vs.

"OPM" ? Other People's Money ... requires only a third party SNT

First Party Special Needs Trust (SNT) versus Third Party SNT

Two types of First Party SNTs:

Individual SNT (aka "d4A" SNT) ... requires drafting an SNT vs.

Pooled Special Needs Trust ("d4C" SNT) ... requires only signing a Joinder Agreement

SUMMARY

First vs. Third

Whose money is it?

Person with Disabilities (with Medicaid Payback)

Other People's Money (no Medicaid Payback required)

Individual d4A SNT

Pooled d4C SNT

Draft an "individual SNT" naming another individual and/or corporate Trustees, contingent beneficiaries after payback, etc.

Sign Joinder Agreement of a Non-profit's "Pooled SNT" which is already established to hold small accounts

Draft: OPM's Revocable Living Trust with contingent beneficiary TPSNT provisions, or Stand-alone TP-SNT, or Testamentary SNT

Starting Points ? General

Too much money for SSI?!? (over $2,000)

Three General Sources

Unplanned inheritance

Personal Injury (PI) Award

Accumulation of savings

Starting Points ? PI Case

1. Conflicts check - if there's a conflict, get waivers 2. Stage of litigation

Pre-suit or at mediation, or Pending Petition to Approve Settlement

for minor or incapacitated adult, or Settlement already approved, disbursement

ready, or Did case settle years ago, and SSA now

terminating benefits

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