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Special Needs Trusts Drafting Camp (download)


By Bradley J. Frigon, CELA, CAP, JD, LLM, Law Offices of Bradley J. Frigon and Stephen Dale, Esq., LLM, The Dale Law Firm
December 16, 2014
270 minutes


ElderCounsel Members – This video is available FREE in the Learning Center > Video Library

Drafting self-settled and third party special needs trusts can often be challenging as there are numerous issues to consider: tax treatment of assets, whether a third party trust should be revocable or irrevocable, how to deal with retirement assets, what constitutes “seed money” for a self-settled special needs trust, and when are Medicare Set-Aside provisions necessary, to name a few. ElderCounsel is proud to offer a 3-part webinar series featuring national special needs planning experts, Brad Frigon and Steve Dale.

Topics Covered:

Part 1: Self Settled Special Needs Trust (90 minutes)

  1. Self settled vs third party SNTs
  2. Differences between SSI and SSDI
  3. Options to maintain eligibility
  4. Special Needs Trust requirements
  5. First party SNT – (d)(4)(a)
  6. Distribution standard – sole benefit
  7. Statement of Grantor’s Intent – Section 1.04
  8. Distribution of income and principal – Section 2.01
  9. Duty to supplement and not supplement government benefits – Section 2.03
  10. Discretionary distributions – Section 2.05
  11. Prohibited expenses and payment
  12. Maintenance of contact with family members – Section 2.06
  13. (d)(4)(a) Disability trust lien payment
  14. (d)(4)(a) Disability payback provision
  15. Administration of SNT upon death
  16. 1st party SNT tax treatment
  17. Medicare secondary payor statute history
  18. MSA funds and Medicaid eligibility
  19. Statement of trustmaker’s intent – Section 1.04
  20. First party SNT case studies

Part 2: Third Party Supplemental Needs Trusts (90 minutes)

  1. Taxation of a special needs trust
  2. Third party and self settled special needs trusts – Review
  3. Compliance issues of 3rd party SNTs
  4. Why would you make a trust irrevocable?
  5. Reformation and amendment – Section 1.08
  6. Compliance issues of 3rd party SNTs
  7. Simple vs. complex trusts
  8. IRA accounts and trust rules
  9. Multiple beneficiaries and separate account rule
  10. Required distributions after death terminology
  11. Calculating RMDs for a beneficiary
  12. No designated beneficiary
  13. DB and RMD rules for trusts
  14. Qualified designated beneficiary trust
  15. Conduit trust
  16. Accumulation trust
  17. Case study example
  18. Deductible expenses
  19. 3rd party qualified disability trust deduction

Part 3: Third Party Supplemental Needs Trusts (90 minutes)

  1. Elements of a Special Needs trust
  2. Third party trust
  3. Supplemental vs. discretionary distribution standards
  4. ElderCounsel language for a discretionary trust
  5. Can my special needs trust pay my rent?
  6. Trustee options
    • Model 1 – Trust directed by an advisory committee
    • Model 2 – Trust directed by a care manager
    • Model 3 – Limited purpose trust
    • Model 4 – Pooled trust directed by a trust advisory committee
  7. Advisory committees
  8. The power to hire and fire the trustee
  9. Distribution plans
  10. Pooled trust option
  11. Integrating a pooled trust into your practice