Special Needs Trust - West Virginia

THIRD-PARTY SPECIAL NEEDS TRUST

This trust is made on [__/__/____] by [SETTLOR FULL LEGAL NAME], of [ADDRESS], as Settlor, and [TRUSTEE FULL LEGAL NAME], of [ADDRESS], as Trustee, for [BENEFICIARY FULL LEGAL NAME], born [__/__/____]. The Settlor now transfers and delivers the property identified in Schedule A to the Trustee. The Trustee accepts the property and agrees to administer it under this instrument.

1. Purpose and source of funds

The trust's purpose is to supplement the Beneficiary's care and quality of life while allowing the Trustee to consider the effect of each distribution on means-tested benefits. This is a third-party trust: only property of the Settlor or another person other than the Beneficiary or the Beneficiary's spouse may be contributed. The Trustee shall decline any proposed contribution belonging to the Beneficiary or spouse and refer it for separate benefits advice. A contribution requiring a deed, account retitling, or other title step enters the trust only after that step is completed and the Trustee accepts it.

2. Irrevocability and beneficial interests

This trust is irrevocable. The Settlor reserves no unilateral power to revoke, amend, withdraw property, direct distributions, or add beneficiaries. The Beneficiary has a present discretionary interest during life, but no right to demand a particular distribution. The remainder interests are fixed in Section 6. Any later change must follow applicable West Virginia law; this instrument does not give the Trustee a unilateral amendment power.

3. Distributions for the Beneficiary

The Trustee may use income or principal for goods and services that benefit the Beneficiary, including care, education, therapies, equipment, transportation, recreation, and housing. The Trustee shall consider current program rules and the likely effect on the Beneficiary's benefits before paying cash, a provider, or a shelter expense. The Trustee may choose a useful distribution even if it reduces a benefit when the Beneficiary's overall welfare justifies the choice, after obtaining appropriate benefits advice. No clause promises that eligibility or a payment amount will be preserved. Undistributed income remains trust property. The Trustee shall document each distribution and exercise discretion in good faith for the trust's purpose and the Beneficiary's interests under W. Va. Code § 44D-8-814.

4. Spendthrift provision

Before actual receipt, the Beneficiary may not voluntarily assign, pledge, or transfer the beneficial interest; the interest is also restrained against involuntary transfer or attachment. This restraint applies subject to the exceptions in W. Va. Code § 44D-5-503 and other applicable law. It does not shield every asset or distribution from every creditor.

5. Trustee administration and succession

The Trustee shall keep trust property separate, keep adequate records, act prudently, and give notices, information, and at least annual reports to the persons entitled under W. Va. Code § 44D-8-813. Subject to this trust and applicable law, the Trustee may hold, invest, insure, lease, sell, exchange, and distribute property; employ advisers; and pay proper expenses. The Trustee shall not use trust property for personal benefit or claim a blanket limit on liability.

If a vacancy occurs, [FIRST SUCCESSOR TRUSTEE FULL NAME AND ADDRESS] shall serve if willing and able; otherwise [SECOND SUCCESSOR TRUSTEE FULL NAME AND ADDRESS] shall serve. If neither serves, W. Va. Code § 44D-7-704 governs filling the vacancy. A Trustee may resign without court approval by giving at least 30 days' notice in a record to the living Settlor, all qualified beneficiaries, and any cotrustees under § 44D-7-705. The outgoing Trustee shall deliver trust property and records to the successor; resignation does not discharge prior liability.

6. End of trust and complete remainder

This trust terminates upon the Beneficiary's death or earlier exhaustion of its property. At the Beneficiary's death, the Trustee shall pay proper trust administration expenses and legally enforceable claims, then distribute 100% of the remaining property outright to [PRIMARY REMAINDER BENEFICIARY FULL NAME], if living. If that person does not survive the Beneficiary, the Trustee shall distribute 100% to [ALTERNATE REMAINDER BENEFICIARY FULL NAME], if living. If neither survives, the Trustee shall distribute 100% to [NAMED CHARITY AND ADDRESS]. Because only third-party property may enter this instrument, it contains no first-party Medicaid payback direction; a proposed beneficiary-funded trust requires separate drafting and review.

7. Governing law

West Virginia law governs the meaning and administration of this trust. Court proceedings shall follow applicable jurisdiction and venue law. This instrument creates no mandatory arbitration, advance cure period before court relief, prevailing-party fee entitlement, or blanket trustee liability cap.

Signatures and present receipt

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

Printed name: [SETTLOR FULL LEGAL NAME]

Trustee signature and acknowledgment of Schedule A receipt: ______________________________ Date: [__/__/____]

Printed name: [TRUSTEE FULL LEGAL NAME]

Schedule A — property delivered to the Trustee now

Identify at least one present asset precisely. Complete any separate deed or account transfer required to vest title in the Trustee.

1. [SPECIFIC ASSET AND IDENTIFYING DETAILS]: [DELIVERY OR TITLE-TRANSFER DETAILS]
2. [ADDITIONAL ASSET, IF ANY]: [DELIVERY OR TITLE-TRANSFER DETAILS]

Trustee confirmation of Schedule A receipt: ______________________________ Date: [__/__/____]