Special Needs Trust - Washington

WASHINGTON THIRD-PARTY SPECIAL NEEDS TRUST

[TRUST NAME] — Washington — [__/__/____]

Before you use this: This form is only for assets owned by someone other than the beneficiary or the beneficiary's spouse. Identify property actually transferred in Schedule A. Do not deposit beneficiary-owned or spouse-owned assets into this trust. Check any public benefit program's current treatment of the trust and proposed distributions before use. Titled property may require a separate deed, assignment, or retitling.

1. Creation and property

I, [SETTLOR FULL NAME], of [ADDRESS], create the [TRUST NAME] Special Needs Trust by transferring the property identified in Schedule A to [TRUSTEE FULL NAME], of [ADDRESS], as trustee. The trustee acknowledges receipt and accepts the trust. The trustee shall hold later property effectively transferred by eligible third parties under these terms. Washington law governs this trust.

The sole current beneficiary is [BENEFICIARY FULL NAME], of [ADDRESS]. The beneficiary is a person with a disability whose needs this trust is intended to supplement. The beneficiary is not the settlor and shall not serve as trustee. The trustee shall decline contributions traceable to assets originally owned by the beneficiary or the beneficiary's spouse, including assets diverted from either of them. This instrument is not a first-party or pooled trust.

2. Irrevocability and purpose

This trust is irrevocable. I reserve no unilateral power to revoke it or retrieve trust property, and the beneficiary has no power to revoke it, compel a distribution, direct the trustee's use of income or principal, or acquire trust assets. This provision does not preclude a lawful modification under applicable law.

The trustee shall administer the property for the beneficiary's supplemental needs during the beneficiary's life. The trustee may pay for goods, services, care, travel, education, therapies, housing, and other items that benefit the beneficiary. Each payment is discretionary. The trustee may consider the effect of a payment on the beneficiary's public benefits, but may make a payment despite a reduction of benefits when the trustee judges the payment to be in the beneficiary's interests. The trustee shall keep records of payments and benefit advice received. No provision guarantees eligibility for any benefit.

3. Contributions and distributions

The trustee may accept additional third-party property only after identifying its source and determining that it can be held under this trust's terms. The trustee shall reject beneficiary-owned property and property of the beneficiary's spouse. A proposed gift by will, beneficiary designation, or separate instrument must effectively transfer the property to the trustee; identifying it here alone is insufficient.

The trustee may distribute income or principal to providers, vendors, caregivers, or other persons for the beneficiary's benefit, or to the beneficiary when the trustee determines that the payment is appropriate after considering its benefit consequences. The beneficiary has no right to demand cash or direct a payment. Undistributed income becomes principal at the end of each accounting year. The trustee shall not distribute trust property to the settlor during the beneficiary's life.

4. Trustee administration and succession

The trustee shall keep trust property separate from personal property, maintain records, and act solely in the beneficiary's interests under RCW 11.98.078. The trustee may retain, invest, sell, lease, insure, and manage trust property; employ advisers; pay proper trust expenses; and make distributions permitted here, subject to RCW 11.98.070. The trustee shall keep qualified beneficiaries reasonably informed and give information and notices required by RCW 11.98.072. The trustee may receive reasonable compensation and reimbursement of proper expenses from trust property.

The first successor trustee is [FULL NAME AND ADDRESS]. If that person cannot or will not serve, the next successor is [FULL NAME AND ADDRESS]. A successor shall sign an acceptance kept with the trust records and give notices required by RCW 11.98.039. An outgoing trustee shall deliver property and records to the successor. A trustee may resign by signing a writing and filing it with the trust records; the outgoing trustee or another interested party must give each permissible distributee notice of the vacancy and the willing named successor. Resignation becomes effective on discharge under RCW 11.98.041. Further appointment or removal follows applicable law. The beneficiary may not serve as a successor trustee.

The beneficiary's interest may not be assigned or pledged and is subject to creditor claims only as applicable law permits, including RCW 6.32.250. Nothing here excuses a breach of trust or categorically limits a trustee's personal liability for contracts or torts; RCW 11.98.110 governs third-party claims.

5. Termination and remainder

This trust terminates at the beneficiary's death or earlier exhaustion of its property. The trustee may first reserve proper administration expenses and satisfy enforceable trust obligations. No Medicaid payback is directed merely because this is a third-party trust. The trustee shall distribute the remaining property outright under Schedule B. Each share goes to its named recipient if living at termination, otherwise to its alternate. If neither survives, that share is divided proportionately among the other surviving recipients or alternates. If none survives, the remainder goes to [FINAL CONTINGENT RECIPIENT FULL NAME AND ADDRESS]. The trustee may distribute cash or property in kind using fair values and shall provide a final accounting.

6. Signatures

I intend to create this irrevocable third-party 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 property and accept the trusteeship under these terms.

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

Printed name: [TRUSTEE FULL NAME]

Schedule A — initial trust property

Schedule B — remainder at beneficiary's death

Remainder shares must total 100%.

Final contingent recipient: [FULL NAME AND ADDRESS]