SUNCOAST ESTATE PLANNING COUNCIL OCTOBER 15, 2009 MARY ALICE JACKSON, ESQ....
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Transcript of SUNCOAST ESTATE PLANNING COUNCIL OCTOBER 15, 2009 MARY ALICE JACKSON, ESQ....
SUNCOA ST ESTAT E P LA NNING COUNCILOCT OBER 15 , 2009
M A RY A LICE J A CK SON, ESQ.M A J A CK SON @B OYERJ A CK SON.COM
W W W.B OYERJ A CK SON.COM
STEP BY STEP: SNTS AND ESTATE PLANNING
STEP 1 – THE BASIC ANALYSIS
Is there a client or beneficiary who is receiving public benefits, who might qualify for public benefits in the future or who could benefit from the programs now? SSI SSDI Medicaid Medicare
If no, grab some more breakfast and turn on your iphones….
STEP 2 – EXISTING ESTATE PLANS
Outright distributions will cause a loss of means tested public benefits
Mandatory income distributions may cause a loss of means tested public benefits
Discretionary trust language can be used to protect benefits
These discretionary trusts are “third party” special needs trusts
NOTE: ELIGIBILITY REQUIREMENTS FOR SSI, MEDICAID, HUD HOUSING, ETC. ARE ALWAYS THE SAME
TERMS OF THE BEQUEST ARE THE KEY
STEP 3 – BEGINNING THE PLANNING
Must ask about disability status of any potential beneficiary
SNT can be created within a LWT , Rev Trust or Irrev Trust
Keys to drafting: No mandatory distributions Spendthrift clauses No ability for beneficiary to revoke, terminate or compel
STEP 4 – THE DETAILS
Trustee must be able to understand program regulations
Beneficiary designations: “to the trustee of the Bobby Bowden Special Needs
Trust dated October 15, 2009” Applies to all assets that will be used to fund the trust Pay directly to the SNT trustee even if SNT created
under Will Insurance, annuities, IRAs** **Third party IRAs can be designated into SNT but 1st
party IRAs cannot under current IRS regs
STEP 5 – STAND ALONE 3D PARTIES
For current funding Differing parties want to fund trust Tax planning potential Long term care planning needs
STEP 6 – SPOUSAL PROTECTION
Sec. 732.4045, Fla. Stat.“Qualifying Special Needs Trusts”
Why? When? Issues
Is failure to create a QSNT malpractice?