A Threat to All SNTsA Threat to All SNTs
Most people haven't noticed, but the Uniform Trust Code (UTC) and the Restatement (Third) of Trusts together abolish the 125-year-old common law distinction between discretionary and support trusts. The immediate effect: In the nine states and District of Columbia that have adopted the UTC in the last three years, state and federal agencies now have a greater ability to deny government benefits when
Mark Merric, manager, Merric Law Firm, LLC, Denver and Douglas W. Stein, associate, Barris, Scott
Most people haven't noticed, but the Uniform Trust Code (UTC) and the Restatement (Third) of Trusts together abolish the 125-year-old common law distinction between discretionary and support trusts. The immediate effect: In the nine states and District of Columbia that have adopted the UTC in the last three years, state and federal agencies now have a greater ability to deny government benefits when families have created trusts to supplement the care of their elderly and disabled — unless the governing documents for these trusts contain specific “special needs” language. Many of these trusts don't, because drafters relied on the common law of...
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