1. SUNCOAST ESTATE PLANNING COUNCIL OCTOBER 15, 2009 MARY ALICE JACKSON, ESQ. MAJACKSON@BOYERJACKSON.COM WWW.BOYERJACKSON.COM STEP BY STEP: SNTS AND ESTATE PLANNING

2. 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….

3. 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

4. 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

5. 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 1 st party IRAs cannot under current IRS regs

6. STEP 5 – STAND ALONE 3D PARTIES For current funding  Differing parties want to fund trust  Tax planning potential  Long term care planning needs

7. STEP 6 – SPOUSAL PROTECTION Sec. 732.4045, Fla. Stat. “Qualifying Special Needs Trusts”  Why?  When?  Issues Is failure to create a QSNT malpractice?