Special Needs Trust - District of Columbia

SPECIAL NEEDS TRUST

Third party funded supplemental needs trust — District of Columbia — [__/__/____]

Before you use this: This instrument is for property supplied by someone other than the beneficiary. Do not use it to receive the beneficiary's own settlement, inheritance, or other property. Complete the initial property and remainder beneficiaries before signing. A benefits specialist should review distributions against the beneficiary's actual programs; this instrument does not guarantee eligibility.

1. Creation and funding

I, [SETTLOR FULL NAME], of [ADDRESS], establish the [TRUST NAME] Special Needs Trust by delivering the property identified as presently transferred in Schedule A to [TRUSTEE FULL NAME], of [ADDRESS], as trustee. The trustee acknowledges receipt of that property and accepts the trust. The trustee shall hold it, and later property effectively transferred by persons other than the beneficiary, under these terms. District of Columbia law governs this trust.

The sole current beneficiary is [BENEFICIARY FULL NAME], born [__/__/____], of [ADDRESS]. This trust is intended to supplement the beneficiary's support and quality of life. It is irrevocable. Neither I nor the beneficiary may unilaterally revoke it, direct a distribution, or require the trustee to give the beneficiary cash. The beneficiary shall not contribute property to this trust, and the trustee shall refuse property owned by the beneficiary.

2. Discretionary distributions

During the beneficiary's life, the trustee may distribute income or principal for goods, services, care, education, transportation, recreation, housing, or other needs that the trustee considers beneficial. The trustee may pay a provider directly or use another method the trustee determines appropriate. The trustee shall consider how a proposed payment may affect the beneficiary's public benefits and other resources. The trustee may consult a benefits specialist and may choose a distribution that reduces benefits if, after that review, it better serves the beneficiary's interests. No category of expense is automatically prohibited by this instrument.

The trustee shall not make a mandatory periodic payment to the beneficiary. Unspent income remains trust property. The beneficiary has no power to assign an interest, demand a distribution, or terminate this trust.

3. Spendthrift restraint

The beneficiary's interest is held subject to a spendthrift restraint on both voluntary and involuntary transfer before receipt. This restraint is subject to the exceptions and court orders allowed by D.C. Code § 19-1305.03 and other applicable law.

4. Trustee duties and powers

The trustee shall keep trust property separate from personal property, preserve records of receipts, expenses, and distributions, and administer the trust in good faith under D.C. Code § 19-1308.01. The trustee may retain, invest, sell, lease, and insure trust property; employ advisers; pay proper expenses; and make discretionary payments under Section 2. The trustee shall give information and reports required by D.C. Code § 19-1308.13. Reasonable trustee compensation and proper expenses may be paid from trust property. This instrument does not excuse a breach of trust or cap the trustee's personal liability beyond applicable law.

The trustee may transfer the trust's principal place of administration only after giving the qualified beneficiaries the notice required by D.C. Code § 19-1301.08, including at least 60 days before initiating the transfer, and subject to objections and court authority under that section.

5. Successor trustee

If the trustee cannot or will not serve, [FIRST SUCCESSOR FULL NAME AND ADDRESS] shall serve; if that person cannot or will not serve, [SECOND SUCCESSOR FULL NAME AND ADDRESS] shall serve. A successor accepts by a signed writing kept with the trust records. The outgoing trustee shall deliver property and records to the successor. A trustee may resign upon at least 30 days' notice to the qualified beneficiaries, the settlor if living, and all cotrustees or, if none, the next named successor, as D.C. Code § 19-1307.05 requires. Any further appointment or removal shall follow applicable law.

6. Remainder after the beneficiary's death

This trust ends at the beneficiary's death, or earlier if all trust property has been properly spent. After paying proper trust administration expenses and enforceable trust obligations, the trustee shall distribute any remaining property outright in the percentages in Schedule B. If a remainder beneficiary does not survive the current beneficiary, that share goes to the alternate in the same row. If neither survives, that share is divided proportionately among other surviving remainder beneficiaries or alternates. If none survives, the remainder goes to [FINAL CONTINGENT RECIPIENT FULL NAME AND ADDRESS]. The trustee shall give the final report required by law.

The property contributed under this instrument belongs to the third party funded trust. This instrument imposes no automatic Medicaid reimbursement from its remainder.

7. Signatures

I intend to create this irrevocable trust and have delivered the initial property in Schedule A to the trustee.

Settlor signature: ______________________________ Date: [__/__/____]

Printed name: [SETTLOR FULL NAME]

I acknowledge receipt of the initial trust property and accept the trusteeship under these terms.

Trustee signature: ______________________________ Date: [__/__/____]

Printed name: [TRUSTEE FULL NAME]

Schedule A — initial trust property

Schedule B — remainder beneficiaries

Shares must total 100%.

Final contingent recipient: [FULL NAME AND ADDRESS]