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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